Financial Results
Third Quarter Underlying Profit Jumps At Lloyds Banking Group
As part of a broader pattern, a move from high impairments amid the pandemic has improved the look of a bank's results.
Lloyds
Banking Group has reported an underlying profit after
impairments of £2.19 billion ($2.99 billion0 for the third
quarter of 2021, jumping 88 per cent year-on-year and helped by a
switch from impairments a year ago as the pandemic eased.
There was an impairment credit of £84 million in Q3, against a
charge of £301 million in Q3, 2020, the UK-listed banking group
said last week. Total cost declined 2 per cent, while net income
of £4.077 billion rose 20 per cent.
The bank’s cost/income ratio narrowed to 48.3 per cent from 56.9
per cent. Return on tangible equity rose sharply to 14.5 per cent
from 6 per cent. At the end of September its Common Equity Tier 1
ratio – a standard international measure of capital strength –
was 17.2 per cent, up from 16.2 per cent at the end of 2020.
