The company, however, posted a 38 surge in statutory profit despite booking a £1.4 billion charge to cover costs related to mis-sold payment protection insurance (PPI), and outlined plans for returning capital to shareholders. Lloyds raised its guidance for its net interest margin, which is a major driver of income, to average 2.6 per cent in 2015.
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He added: “We remain focused on our aim to become the best bank for customers and shareholders while at the same time supporting the UK economy”.
The resumption of dividend payments clears the path for the Treasury to further trim its stake in the bailed-out lender which now stands at just below 15 percent.
The lender remains hampered by issues from the past such as PPI.
The bank also took a charge of £660m on the sale of TSB.
Profit excluding one-time items and legacy conduct costs rose 15 percent to 4.4 billion pounds in the first half from the year earlier period.
Mr Horta-Osorio said: “We are disappointed to announce further provisions today, but we do so from a position of financial and capital strength”. It said the extra provision reflected “higher than expected reactive complaints with higher associated redress”.
Horta-Osorio said the bank would prefer customers to complain directly to it so that compensation goes directly to consumers.
He added that the lender was undergoing a “digital revolution” with more than 11 million online users and almost six million using its mobile services.
The bank said it will pay an interim dividend of 0.75 pence per share, and said it will consider special dividends or share buy-backs in future.
Prime Minister David Cameron pledged before the election to provide a retail share offer, which is expected to come after the bank’s next set of full year results in March.
Mr Horta-Osorio said Lloyds was on course to be fully privatised in the next 12 months.
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Private investors will be offered shares at a 5% discount to the market price and receive a 10% bonus – up to £200 – if they held onto them for a year.
