Bank remains robust says CEO
Lloyds takes further £1bn hit for PPI mis-selling
Lloyds set aside a further £1 billion compensation for mis-selling PPI and a a 4% slip in underlying profit to £6.073 billion for the first nine months of the year compared to the same period last year (£6.355bn).
Statutory profit before tax was £3.265bn (2015: £2.151bn), an increase of more than 50% after the charges relating to PPI, restructuring and other costs.
Loans and advances to customers were 1% lower at £452bn (31 December 2015: £455bn).
The third quarter profit came in a £811m (2015: £958m).
Group chief executive Antonio Horta-Osorio (pictured) said: “In the first nine months of the year the group has delivered a robust underlying performance with a strong improvement in statutory profit and strong capital generation.
“Our differentiated, UK focused, simple, low risk business model continues to deliver and as a result we are reaffirming our stated 2016 guidance.
“We remain focused on delivering on our targets to support people, businesses and communities as set out in our Helping Britain Prosper Plan.
“We are making good progress against our strategic priorities: creating the best customer experience; becoming simpler and more efficient; and delivering sustainable growth.
“In the last 12 months we have grown net lending to SMEs by 4% and have also grown net lending in both credit card balances and motor finance while continuing to grow our bulk annuity business.
“We remain committed to helping first-time buyers onto the housing ladder whilst continuing to balance risk and margin considerations versus volume in mortgages.
“We also continue to operate the UK’s largest branch network and the largest digital bank with 12.4 million online users and 7.8 million mobile users of our top-rated apps.
“The hard work undertaken in the last five years to transform and simplify the business has allowed the UK government to sell most of its stake in the Group, returning £17 billion including dividends on its original £20 billion investment. We welcome the recent decision to recommence the sale of its shares.
“The outlook for the UK economy remains uncertain, however the strength of the recovery in recent years means the UK is well positioned.
“The group’s transformation and successful execution of strategy, along with its competitive advantages in costs and risk, also position us well for the future and to achieve our goal of becoming the best bank for customers and shareholders.”