Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a712875
Lloyds' profits surge as non-performing loans recede
by James Phillipps on Oct 29, 2013 at 07:43
Lloyds reported underlying profit growth of 7% in the third quarter as bad loan impairments continued to recede.
The banking giant recorded profit of £1.52 billion, 7% up on the second quarter and 83% higher than in the same period last year. This helped drive underlying profit for the first nine months to £4.42 billion, a 136% year-on-year increase, despite a further £750 million payment protection insurance charge in the quarter, taking the total set aside for PPI claims to £1.2 billion in 2013.
Impairment charges on non-performing loans fell by 44% year-on-year to £2.48 billion over the first nine months of the year and the bank's profits were further boosted over the year by the two sell-offs of SJP shares , selling 20% of its stake in March and a further 15% in May. Those sales raised £520 million and £450 million respectively.
Group chief executive Antonio Horta-Osorio said the company has already achieved its year-end target of the disposal of £70 billion of non-core assets, selling off £28.4 billion and he expects this reduce to around £66 billion by the end of the year. Likewise its goal of operating in 10 or less countries by the end of 2014 is ahead of target, having exited 21 this year.
He added that a new point of sale system has been rolled out across Lloyds’ wealth business and it is also piloting improved customer relationship management technology.
Commenting the government’s plans to sell down its stake in the bank, Horta-Osorio said: ‘We were also pleased to see the UK government begin the process of returning the group to full private ownership and getting taxpayer's money back at a profit through the sale of part of its shareholding in September.’
News sponsored by:
Today's top headlines
More about this:
Look up the shares
On the road
by Danielle Levy on Dec 12, 2013 at 09:03