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Focus on retail customers

Lloyds marks private return with profits leap

Antonio Horta-Osorio Youtube

Antonio Horta-Osorio: focus on retail customers

Lloyds Banking Group has marked its return to full private ownership with a sharp rise in pre-tax profits.

Third quarter PTP rose 141% to £1.95 billion from £811m in the previous year.  Underlying profit for the period was £2.08bn, up 9% on 2016.

It is the first set of quarterly results since the Government offloaded its final tranche of shares.

Chief executive Antonio Horta-Osório said the bank’s focus on UK retail customers was paying off.

“These results highlight the strength of our customer focused, simple and low risk business model,” he said.

The bank did not make any further provisions for payment protection insurance (PPI) claims, although it said there had been a spike in claims coinciding with the Financial Conduct Authority’s advertising featuring the disembodied head of Arnold Schwarzenegger.

PPI claims hit 16,000 per week following the campaign, before falling back to 11,000 a week, still above the lender’s assumed run-rate of 9,000. The bank still has £2.3bn set aside for reimbursing claimants.

Lloyds expects integration of its cards business MBNA to complete ahead of schedule.


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