Lloyds profits flat but beat estimates

Lloyds (LLOY.L) reported a slight dip in profits in the third quarter but still beat estimates, with the bank reiterating its full-year guidance.

Profits before tax for the third quarter came in at £1.823bn ($2.36bn), which was 2% lower than the same period last year.

However, this came in ahead of consensus estimates of £1.622bn, according to figures supplied by the bank.

Underlying net interest income, the gap between what it pays out to savers and borrowers in interest, fell 6% in the third quarter to £3.2bn.

The bank posted a 2% decline in operating costs to £2.3bn in Q3, compared to the same period last year.

Lloyds reaffirmed its guidance for 2024, expecting operating costs of £9.4bn and guided to a return on tangible equity of 13%.

Charlie Nunn, group chief executive, said: “The Group delivered a robust financial performance in the third quarter of 2024, with growth in income alongside continued cost discipline and strong asset quality.

“As mentioned during our half-year 2024 results update, we are making good progress on our strategy and remain on track to deliver higher, more sustainable returns.”

In the second quarter, the bank delivered pre-tax profit of £1.7bn, which was higher than the £1.6bn it generated in Q2 2023 and beat market expectations of £1.58bn.

Download the Yahoo Finance app, available for Apple and Android.