Lloyds changes reporting of interest margins

LLOYDS has shaken up the way it reports funding costs and capital, pushing the banking net interest margin target slightly higher without touching group earnings numbers.

The bank now expects its net interest margin to be just above 2.05% this year, City AM reports, up from the previous target of slightly higher than 2%.

The net interest margin is the difference between what banks pay to borrow, and the amount they charge for loans.

Lloyds claimed the changes would raise net interest income in its core banking divisions slightly, but have a small negative impact on net interest income in other non-banking areas.

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