Despite the 8% drop YOY, Lloyds Banking Group (LYG, Financial) announced a 14% quarterly gain in Q3 underlying profits before impairment, hitting £2.03 billion. The bank ascribed its expansion to more loan activity, helping to raise net interest income.
"We are making good progress on our strategy and remain on track to deliver higher, more sustainable returns," Group CEO Charlie Nunn expressed confidence in the bank's course. The company confirmed its 2024 direction once more. From the previous quarter to £3.23 billion, Lloyds' net interest income rose 2% but from a year earlier, it dropped 6%. Its underlying income grew 3% from Q2 and 10% YOY. Operating expenses was constant at £2.29 billion, somewhat below previous quarter but rising from £2.24 billion a year earlier.
Though somewhat behind last year's 2.0 pence, third-quarter earnings per share rose to 1.9 pence from 1.7 pence in Q2. From 13.6% last quarter to 13.9% in Q3 2023, return on tangible equity climbed to 15.2%. Underlying loans and advances climbed to £457.0 billion by September 30, while customer deposits climbed to £475.7 billion. Additionally, early trade saw Lloyds share drop 1.2%.
