Lloyds Banking Group Plc reported a third-quarter profit that exceeded analyst estimates, but the UK lender kept its guidance steady, disappointing investors. Net interest income rose 10% to £3.8 billion ($5.1 billion), while pretax profit reached £2.33 billion, surpassing the Bloomberg average estimate of £2.29 billion. Despite the profit beat, Lloyds maintained its outlook, citing a flat rate environment.
UK interest rates remained at 3.75% throughout the year, with inflation concerns heightened by the war in Iran. Underlying impairment charges jumped 78% to £313 million, reflecting economic deterioration and higher interest rates. Lloyds shares rallied after the government confirmed a limited-time tax hike on the banking sector.
Non-interest income rose 8% to £1.69 billion. CEO Charlie Nunn highlighted continued income growth and improving operating leverage. The bank is expanding into wealth services, insurance, and workplace pensions, while folding its Halifax brand into the Lloyds umbrella.
It also aims to scale its corporate and investment banking operations in the US and Europe.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing