Lloyds 3Q Beat Expectations as Pretax Profit Nearly Doubled -- Update

By Sabela Ojea

Lloyds Banking Group PLC on Thursday reported a nearly doubled pretax profit for the third quarter of 2021, beating market views.

The FTSE 100-listed bank posted a pretax profit of 2.03 billion pounds ($2.79 billion), up from GBP1.04 billion a year earlier. Pretax profit had been expected to reach GBP1.35 billion, according to the bank's compiled consensus.

Net income increased to GBP4.08 billion from GBP3.40 billion, the company said. It had been anticipated to rise to GBP3.78 billion, taken from Lloyds's compiled consensus.

The bank ended the period with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 17.2% as of Sept. 30, up from 16.7% as of June 30. It had been expected to be 16.3%, according to the bank's compiled consensus.

The lender said that, given its stronger performance and the improved U.K. macroeconomic outlook, it now expects to book costs of around GBP7.6 billion. Also, its full-year return on tangible equity is now expected to be more than 10%, Lloyds said, adding that it now expects loan impairments to be a net credit for the year.

"Building on the strengths of the group and its achievements in recent years, there are clearly significant opportunities for Lloyds Banking Group to further develop its platforms and capabilities and grow," Chief Executive Charlie Nunn said.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

October 28, 2021 03:12 ET (07:12 GMT)

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