The UK banking group reported a broadly improved set of results for the nine months to the end of September.

Lloyds Banking Group, in which the UK government holds a minority stake – with plans to return to full private ownership – today reported pre-tax profit for the nine months to 30 September of £2.151 billion ($3.29 billion), a 33 per cent rise from £1.614 billion a year ago. 

The results did not disclose sectoral performance of its private banking and wealth management business.

The UK-listed banking group said its underlying profit increased by 6 per cent in the first nine months to £6.355 billion, largely driven by a 64 per cent improvement (ie, reduction) in impairments. Total income was broadly flat but operating costs fell 1 per cent with the cost/income ratio tightening to 48.0 per cent. 

The statutory profit figure was arrived at after a charge of £660 million relating to the disposal of TSB in the first half of the year as well as provisions for payment protection insurance mis-selling totalling £1.900 billion (2014: £1.500 billion) of which £500 million was charged in the third quarter.

The bank said that improved financial results have enable the UK government to push forward in returning Lloyds to full private ownership. The state now has cut its stake in the bank to less than 11 per cent and returned around £15.5 billion to the taxpayer.

Yesterday, Netherlands-headquartered ABN AMRO said plans were being readied to hold an IPO of the state-owned bank, with a move as early as the final quarter of this year. A number of European banks were bailed out by governments during the 2008 financial crisis, such as ING and Royal Bank of Scotland.