Britain's state-rescued Lloyds Banking Group said on Friday that net profits rose by 31 percent in the first half, despite setting aside further funds for compensation for insurance mis-selling.
Earnings after tax rose to £874 million (1.245 million euros, $1.364 million) in the six months to June, and the company announced a dividend of 0.75 percent per share, amounting to £535 million.
This was despite setting aside a further £1.4 billion to cover compensation to customers who were mis-sold payment protection insurance (PPI), taking the lender's total PPI bill to £13.4 billion including administrative costs.
The British government bailed out Lloyds during the financial crisis in 2008 but has been reducing its share in recent months, and this now stands at less than 15 percent.
"Today's results demonstrate the strong progress we have made in the first half of the year," said chief executive Antonio Horta-Osorio.
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."
Lloyds paid out its first dividend since the financial crisis earlier this year, again of 0.75 percent.