Lloyds Banking Group improved its full-year guidance after bad-debt writebacks contributed to a near doubling of third-quarter profit.
Pretax profit for the three months to the end of September rose to £2.03bn from £1.04bn a year earlier as net income increased 20% to £4.08bn. The bank released £84m of impaired loans compared with a charge of £301m a year earlier.
In the first nine months of 2021 pretax profit surged to £5.93bn from £434m as net income rose 8% to £11.64bn. The FTSE 100 bank recorded a £740m impairment credit compared with a £4.12bn charge a year earlier.
Lloyds said based on its performance and the improved UK economic outlook it expected its 2021 net interest margin to be slightly above 250 basis points and for operating costs to be about £7.6bn. Impairments will be a net credit and the return on tangible net equity will exceed 10% excluding a benefit from tax rate changes.
Charlie Nunn, who took over as chief executive in August, said: “There are clearly significant opportunities for Lloyds Banking Group to further develop its platforms and capabilities and grow through disciplined investment. As we move into the final quarter of 2021, the board, group executive committee and I are developing the next evolution of our strategy and longer-term priorities.”
