Lloyds posts £1.9billion Q3 profits DESPITE Brexit fear-mongering
LLOYDS BANKING GROUP reported third-quarter profits largely unchanged from a year ago, confounding initial expectations of a sharp squeeze on earnings caused by Britain's surprise vote to quit the European Union.
Lloyds Banking group have posted £1.9billion Q3 profits
Underlying pretax profits were £1.9 billion ($2.31 billion), slightly under the £1.97 billion booked in the corresponding period a year ago.
Total income for the quarter was £4.3 billion, broadly in line with Q3 2015.
Britain's largest retail bank also booked a fresh £1billion charge to compensate customers mis-sold loan insurance after the Financial Conduct Authority pushed back the claims deadline by a year to mid-2019.
"The outlook for the UK economy remains uncertain, however the strength of the recovery in recent years means the UK is well positioned," the bank said in a statement.
The bank's total income for the quarter was £4.3 billion
Lloyds profit rise overshadowed by $1.4B PPI bill, job cuts
The strength of the recovery in recent years means the UK is well positioned
Lloyds also reported a £740million deficit in its pension fund, which has been hit by falling bond yields in recent months.
Rescued in a £20.5billion taxpayer bail-out during the financial crisis, Lloyds is the first major British bank to report results that fully capture the period after the referendum results.
Chief Executive Officer Antonio Horta-Osório is searching for ways to prop up Lloyds' dividend and profits against a more testing economic environment and the effects of lower-for-longer interest rates caused by the vote to leave the EU.
The company confirmed 1,230 job cuts last week but claim it isn't linked to Brexit
Since June's referendum, shares in Lloyds have fallen by about a quarter, partly reflecting their heavy exposure to any downturn in the British economy.
Lloyds said total loans and advances to customers fell £1billion to £452 billion compared to three months earlier.