UK bailed out banks return to profit

Lloyds Banking Group has announced a profit of £2.1bn ($3.2bn) for the six months to the end of June, marking a return to healthier financial territory for the bank.

The figures compare with a loss of £456m for the same period last year.

The government has a 39% stake in the bank, roughly equivalent to taxpayers buying shares in the bank for 73p each in 2008. The latest results have prompted speculation that the government might look to sell off its stake.

The incoming chief executive of Royal Bank of Scotland will take no bonus for his work in the role this year or 2014.

Ross McEwan, 56, who is currently head of the bank's retail arm, will take up the position in October with a £1m salary.

The announcement came as RBS reported pre-tax profits of £1.4bn in the first half of the year.

This was up from a loss of £1.7bn the year before.

However, the bank's shares took a hit as investors voiced their disappointment there had not been further improvements.

Shares fell over 5% in early morning trading before recovering slightly.