25th Oct 2018 07:46
LONDON (Alliance News) - Lloyds Banking Group PLC on Thursday reported a drop in third quarter profit, but the profit was still up for the year-to-date.
The FTSE 100-listed lender announced that Chief Financial Officer George Culmer will retire "during" the third quarter in 2019. He is expected to retire after the bank's first half results. Lloyds said a search for successor has commenced.
In the three months ended September, Lloyds's pretax profit decreased 6.7% to GBP1.82 billion from GBP1.95 billion the year before, due to the significantly higher restructuring costs.
Lloyds posted restructuring costs of GBP284 million, a 59% increase from the GBP148 million paid in the same period a year before.
The bank's operating costs in the three months were largely flat at GBP1.99 billion with a 5.2% increase in impairment costs to GBP284 million from GBP270 million.
The FTSE 100-listed bank's net income increased 2.3% to GBP4.45 billion from GBP4.35 billion the previous year. Total income increased 1.5% to GBP4.69 billion from GBP4.62 billion.
Lloyd's banking net interest margin in the quarter was 2.93%, up from 2.90% in the same period last year.
The lender's return on tangible equity in the period was 14.8%, a decrease from the 15.3% achieved a year ago.
The bank's loans & advances to customers at September 30 were GBP445 billion, a slight increase from GBP442 billion at June 30.
Lloyds customer deposits in the year to September 30 increased 5.7% to GBP422 billion compared to GBP418 billion in the six months to the end of June.
The retail and commercial bank improved its common equity tier one ratio in the third quarter to 14.6% from 14.5% at the end of the previous quarter, maintaining "balance sheet strength". Pre 2018 dividend accrual, its CET1 ratio increased to 15.5% from 15.1%.
The lender's numbers for the year-to-date signal a better performance, however.
"In the first nine months of 2018 we have delivered a strong and sustainable financial performance, with increased profits and returns and continued strong capital build. These results further demonstrate the strength of our business model and the benefits of our low risk, customer focused approach," said Antonio Horta-Osorio, chief executive.
For the nine months to September end, Lloyds pretax profit increased 9.6% to GBP4.93 billion from GBP4.50 billion.
In the same period, the bank's net income increased 2.3% to GBP13.42 billion from GBP13.12 billion the previous year. Total income increased 1.9% to GBP14.15 billion from GBP13.89 billion.
Lloyds PPI provisions in the for the year-to-date totalled GBP550 million - down from GBP1.05 billion lat year - with total impairments of GBP740 million , up from GBP538 million the year before.
Lloyds total assets at September 30 decreased slightly to GBP829.2 billion from GBP829.8 billion at June 30.
Horta-Osorio added: "We remain on track to deliver the improved financial targets for 2018 that we announced in August, as well as all of our longer term guidance."
Related Shares:
Lloyds