Lloyds posts better-than-expected third-quarter results

LLOYDS Banking Group has reported a better-than-expected set of third-quarter results as the lender continues a strong run of form.

The bank saw a 7% fall in profits to £1.82bn in the three months to September 30 after it was hit by increased restructuring costs.

However, the figure was above consensus estimates of £1.7bn, and total income for the quarter came to £4.69bn, an increase of 1%.

In addition, the bank’s net interest margin — the difference between the interest received from borrowers and the amount paid out on deposits — held steady at 2.93%.

Lloyds boss Antonio Horta-Osorio said: “These results further demonstrate the strength of our business model and the benefits of our low-risk, customer-focused approach.

“As planned, our strategic investment has accelerated and is already delivering real benefits to customers while operating costs continue to reduce.”

Lloyds booked £235m in restructuring costs to cover the likes of redundancy payments to workers as it pushed ahead with a three-year strategy that will see it focus on digital banking.

The bank has been undergoing an overhaul of its workforce and branch network, having announced hundreds of job cuts and bank closures over the past 12 months.

The group also announced the departure of finance chief George Culmer, who will retire from the company next year.