Lloyds profits rise to £2bn but are they back to normal?

Lloyds have announced underlying profits of £2bn for first three months of the year. Photo: PA

Lloyds, the bank we own a hefty chunk of, has just announced underlying profit for first three months of this year has risen to just over 2 billion pounds, they are back in the black.

The boss, Antonio Horso Ortario says they are making 'significant progress', and it certainly seems that Lloyds is on the way back to normal.

For the first time in years they have not set aside any extra cash to be paid out in compensation for PPI mis-selling, and they are also managing to increase the amount of cash they are lending out to business - that goes against the trend where it has been shrinking much to the frustration of the government and business.

But they still face a major challenge in offloading the branches they hoped to sell to the Co-op.

Just this month the bank had to announce that the deal was off.

Now they hope to revive the TSB brand and float the branches off under that name instead.

But as others have found, breaking up bits of the bank is far from straightforward.

As for when taxpayers will get their money back? Management insists it is for the government and UKFI, not them, to decide when our stake might be sold.

Lloyds' books are certainly returning to health, but the complications of the financial crisis still hang over them.