Nevertheless, the figures came in ahead of expectations, with analysts predicting a pre-tax profit of about £1.6 billion.

Statutory profit after-tax also came in at £3.8 billion over the nine-month period, compared with £4.3 billion the previous year, with net income down 7 per cent on the prior year and operating costs up 5 per cent.

Underlying net interest income came in at £9.6 billion over the nine-month period, down 8 per cent with a lower banking net interest margin of 2.94 per cent and average interest-earning banking assets of £449.9 billion.

Operating costs reached £7 billion over nine months, up 5 per cent, with cost efficiencies helping to partially offset higher ongoing investment, planned accelerated severance charges and inflationary pressure, alongside about £0.1 billion in the first quarter relating to the sector-wide change in the charging approach for the Bank of England Levy.

Risk-weighted assets also reached £223.3 billion, up £4.2 billion in the period, reflecting lending growth and other movements, partly offset by efficient management of risk-weighted assets. Tangible net assets per share of 52.5 pence, were up from 50.8 pence, the bank added.

“As mentioned during our half-year 2024 results update, we are making good progress on our strategy and remain on track to deliver higher, more sustainable returns,” Charlie Nunn, group chief executive, said.