Lloyds said it will apply to Britain's financial regulator in the second half of the year to restart dividends at a "modest" level.

"The things that matter are being able to demonstrate a statutory profit and a strong capital position. These half-year results show both of those. I do think they strengthen our hand," Finance Director George Culmer told reporters after the bank reported a jump in profits.

(Reporting by Matt Scuffham; Editing by Steve Slater)