Lloyds Banking Group said its financial performance in the six months to June 30, 2014 had "substantially improved", with underlying profits before exceptional charges reported to be up 32 per cent year on year to £3.8 billion. However, including further PPI provisions, regulatory fines, restructuring costs related to its forced hive-off of TSB to meet EU state-aid rules, underlying pre-tax profits slumped from £2.1 billion to £863 million. Included in the first-half provisions was a net charge of £1.13 billion relating to Enhanced Capital Notes, a newly created fixed income security used by banks to increase capital ratios imposed as a result of the banking crisis.