By Ian Walker

 

Lloyds Banking Group PLC on Thursday reported a 26% fall in third-quarter pretax profit after booking an impairment charge due to the weakening economic outlook, but raised its interest margin forecast.

The U.K. bank reported a pretax profit of 1.51 billion pounds ($1.76 billion) for the quarter, compared with GBP2.03 billion for the same period a year earlier and a consensus of GBP1.84 billion, taken from the lender's compiled forecasts.

The bank report booked an impairment charge of GBP668 million compared with a credit of GBP119 million for the comparable period.

Underlying profit--which strips out exceptional and other one-off items--was GBP1.73 billion compared with GBP2.08 billion and a consensus of GBP1.88 billion.

The FTSE 100-listed lender's underlying net interest income rose to GBP3.39 billion from GBP2.85 billion while its net interest margin--a closely watched metric which measures the difference between interest generated from loans and that paid out for deposits--rose to 2.98% compared with 2.55% and a consensus of 2.90%.

Lloyds said it expects full-year net interest margin to be more than 290 basis points compared with previous guidance for greater than 280 basis points.

The bank ended the period with a common equity Tier 1 ratio--a key measure of balance-sheet strength--at 15% compared with 14.8% at June 30.

 

Write to Ian Walker at ian.walker@wsj.com

 

(END) Dow Jones Newswires

October 27, 2022 02:42 ET (06:42 GMT)

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