Lloyds Bank lifted net interest margin guidance despite a fall in third quarter profit and rise in bad loan charges as the economic crisis started to worsen.
The UK’s biggest mortgage lender on Thursday said it now expected net interest margin, a key measure of the difference between lending and savings rates, to be above 2.90% from 2.8%.
Pre-tax profit fell 26% to £1.5bn. Net income rose 12% to £13bn on the back of surging interest rates with impairment charges soaring to £668m from a release of £119m a year ago.
“The current environment is concerning for many people and we are committed to maintaining support for our customers,” said Lloyds CEO Charlie Nunn.
Hundreds of mortgage products were pulled by UK banks this month and rates on loans ratched up in response to now-departed prime minister Liz Truss’s catastrophic financial policies which sent markets into turmoil.
Reporting by Frank Prenesti for Sharecast.com
