Lloyds doubles profit as cost cuts boost results
Summarised from 3 outlets · Updated 29 Oct, 08:03 · Archive
Lloyds Banking Group reported pre-tax profit of £2.3bn for the third quarter, nearly doubling the £1.2bn it made a year earlier. The surge was driven by cost-cutting measures and higher interest rates boosting income.
The bank's underlying net interest income jumped 10 per cent year-on-year. Its cost-to-income ratio came in at 47.2 per cent against an expected 48 per cent, helped by a nine per cent rise in income to £5bn and operating costs of £2.37bn, undercutting consensus by £28m. The bank's return on tangible equity reached 19.5 per cent for the period, above its full-year guidance of around 16 per cent.
Lloyds is targeting around £2bn in cost savings by 2030 as part of its Accelerate 2030 strategy. Chief executive Charlie Nunn said the group's cost-to-income ratio would reduce to less than 45 per cent by 2030, down from a 50 per cent target for 2026. The bank expects costs to rise in the fourth quarter following payment of the UK bank levy and year-end investment spending.
How it is being reported
- Lloyds reports profit increase as bank gets boost from higher ratesThe results come a day after the Chancellor said in the Budget that he would be temporarily hiking bank taxes.Independent Business · 29 Oct, 07:46
- Lloyds reports profit increase as bank gets boost from higher ratesThe results come a day after the Chancellor said in the Budget that he would be temporarily hiking bank taxes.Evening Standard · 29 Oct, 07:46
- Lloyds beats profit expectations after tightening costsLloyds Banking Group beat profit expectations in the third-quarter after slashing its cost base. The FTSE 100 giant reported a £2.3bn pre-tax profit for the latest three months, up nearly 99 per cent on last year’s figure. The growth was driven by the absence of any major impairment charges after the bank added another £800m [...]City AM · 29 Oct, 07:30
In this story: Lloyds Banking Group · Bank of Scotland · Charlie Nunn · UK
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