London — Lloyds Banking Group’s net profit
jumped 63% in the first nine months of 2017, as the British economy
remains resilient in the face of Brexit.
Lloyds said on Wednesday that its bottom-line net profit rose to £2.8bn in the period from January to September, compared with £1.7bn a year earlier.
"In the first nine months of the year, we have delivered a strong financial performance," CEO Antonio Horta-Osorio said.
"Our differentiated UK-focused business model continues to deliver with the UK economy remaining resilient."
Highly dependent on its high-street banking activities, Lloyds lifted overall revenue by 9% in the January-September period, benefiting from a comparatively solid domestic market, despite the uncertainties related to Britain’s planned departure from the EU.
"The economy is more resilient than expected, there is full employment," Horta-Osorio said in a conference call to journalists.
"There is some pressure on the real wages, but the depreciation of the pound is a boost for exporters," he said.
Underlying profit grew 8%, "driven by organic growth" and the bank’s credit card business. The British government bailed out Lloyds following the 2008 world financial crisis at a cost of about £20bn, handing the state a 43% stake in the bank. It returned to full private ownership in May.
As part of its recovery, the bank focused less on international markets and more on its British operations.
The solid performance of Britain’s housing market and strong returns from its credit card book also helped boost profits, it said.
In the past, Lloyds Banking Group’s performance has been weighed down by compensation claims from customers who were mis-sold a controversial insurance product known as PPI.
But no additional charges were taken in the last quarter, the bank said.
In 2011, British banks lost a high court appeal against tighter regulation of PPI, which provides insurance for consumers should they fail to meet repayments on a credit product such as consumer loans, mortgages or payment cards.
PPI became controversial after it was revealed that many customers had been sold it without understanding that the cost was being added to their loan repayments. British authorities subsequently banned simultaneous sales of PPI and credit products.
Lloyds is cutting 3,000 jobs this year, bringing to 12,000 the number of positions it has axed since 2014.
At the same time, in a sign of its turnaround, the bank bought Bank of America’s UK credit card division MBNA for £1.9bn in December.
AFP
Lloyds said on Wednesday that its bottom-line net profit rose to £2.8bn in the period from January to September, compared with £1.7bn a year earlier.
"In the first nine months of the year, we have delivered a strong financial performance," CEO Antonio Horta-Osorio said.
"Our differentiated UK-focused business model continues to deliver with the UK economy remaining resilient."
Highly dependent on its high-street banking activities, Lloyds lifted overall revenue by 9% in the January-September period, benefiting from a comparatively solid domestic market, despite the uncertainties related to Britain’s planned departure from the EU.
"The economy is more resilient than expected, there is full employment," Horta-Osorio said in a conference call to journalists.
"There is some pressure on the real wages, but the depreciation of the pound is a boost for exporters," he said.
Underlying profit grew 8%, "driven by organic growth" and the bank’s credit card business. The British government bailed out Lloyds following the 2008 world financial crisis at a cost of about £20bn, handing the state a 43% stake in the bank. It returned to full private ownership in May.
As part of its recovery, the bank focused less on international markets and more on its British operations.
The solid performance of Britain’s housing market and strong returns from its credit card book also helped boost profits, it said.
In the past, Lloyds Banking Group’s performance has been weighed down by compensation claims from customers who were mis-sold a controversial insurance product known as PPI.
But no additional charges were taken in the last quarter, the bank said.
In 2011, British banks lost a high court appeal against tighter regulation of PPI, which provides insurance for consumers should they fail to meet repayments on a credit product such as consumer loans, mortgages or payment cards.
PPI became controversial after it was revealed that many customers had been sold it without understanding that the cost was being added to their loan repayments. British authorities subsequently banned simultaneous sales of PPI and credit products.
Lloyds is cutting 3,000 jobs this year, bringing to 12,000 the number of positions it has axed since 2014.
At the same time, in a sign of its turnaround, the bank bought Bank of America’s UK credit card division MBNA for £1.9bn in December.
AFP
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