Lloyds sees impairment charge at lower end of guidance, profit jumps in Q3

Thu, 29th Oct 2020

Banking group Lloyds said it expected the annual impairment charge to be at the lower end of its guidance range after reporting a rise in third-quarter profit as the end of payment protection insurance saga boosted performance. The company also announced that Robin Budenberg would be appointed as chairman to succeed Lord Blackwell, who is set to step down and resign on 1 January 2021. For the three months to 30 September, pre-tax profit rose to £1.04 billion from £50 million year-on-year, while revenue fell 16% to £2.62 billion. For the nine months through September, net income fell 17% to £10.8 billion, reflecting lower interest rates and lower other income. The company did not make a provision for payment protection insurance in Q3, compared with a £1.8 billion last year. Earlier this year, the company said no further provisions were needed as it had already set aside enough money. In its loan business, net interest margin rose 2 basis points to 2.42% in the quarter. Looking ahead, the company said the impairment charge for the full year was now expected to be at the lower end of the £4.5 billion to £5.5 billion range. Story provided by StockMarketWire.com

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