Banking Group Lloyds on Wednesday released data showing before-tax profit of £1.95 bln for July-September period, which is lower than economists forecasted following the largest profit in 8 years of the first 6 months this year.
Lloyds’ profit before tax went up from £811 mln a year back, though the predicted by experts mean figure of £2.002 bln remained overoptimistic, as per Thomson Reuters information.
The bank anticipates increase in the rate of capital growth to 2.25-2.4 percentage points per year during the rest of 2017, being a signal of rising profitability.
CEO Antonio Horta-Osorio believes the figures demonstrate the upside of low-risk model and the competitive edge of the bank in Britain. The quality of assets is quite solid, which is the result of prudent policy in relation to risk, while British economy is robust, he said.
The company managed not to take new provisions for charges of misconduct like the payment protection insurance issue, the case that has grown into the UK’s most expensive consumer banking row.
Lloyds added £700 mln more of provisions for compensation in the middle of the summer. But the company said compensation claims grew in number after UK’s financial body initiated an information campaign relating to the case in August.