Financial Results

Third Quarter Underlying Profit Jumps At Lloyds Banking Group

Editorial Staff, 1 November 2021

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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.

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