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Lloyds profits take 97 per cent hit in Q3

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  • 31/10/2019
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Lloyds profits take 97 per cent hit in Q3
Lloyds Banking Group’s profit before tax dropped by 97 per cent to £2.9bn in the first nine months of the year due to payment protection insurance (PPI) claims in Q3.

 

During the period, Lloyds acquired Tesco Bank’s £3.7bn residential mortgage portfolio in a deal which was closed in September and saw the bank take on Tesco’s 23,000 mortgage customers.  

Lloyds also reported £2.4bn in organic mortgage book growth and overall, increased its open mortgage book by £6.1bn to £271bn.  

Year-on-year, this was a one per cent increase from £267.1bn in 2018 and the group said at the end of 2019 it expected its open mortgage book to exceed last year’s figure. 

The group said at the end of 2019 it expected its open mortgage book to exceed last year’s figure. 

Lloyds’s closed mortgage book stood at £19.1bn, an 11 per cent decline on last year’s £21.5bn. 

Overall, customer loans increased by one per cent to £447bn, up from £441bn in the previous quarter. 

Lloyds did not provide its gross mortgage lending figures when contacted by Mortgage Solutions.

 

PPI charge 

The group’s profits were mainly impacted by a £1.8bn PPI charge in the third quarter. 

António Horta-Osório, group chief executive, said: “I am disappointed that our statutory result was significantly impacted by the additional PPI charge in the third quarter, driven by an unprecedented level of PPI information requests received in August.  

“However, our performance continues to demonstrate the resilience of our customer franchise and business model, the strength of our balance sheet and that our strategy is the right one in this environment.”

 

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