LONDON: Britain's state-rescued Lloyds Banking Group said Thursday that net profits slumped 57 percent in the first half, hit by compensation for insurance mis-selling and fines over Libor rate rigging.

Earnings after taxation dived to £665 million ($1.125 million, 840 million euros) in the six months to June 30, compared with £1.560 billion a year earlier when it was boosted by sales of assets and government bonds, LBG said in a statement.

The lender is 25-percent owned by the government.