Thursday 25 October 2018 7:58 am

Lloyds Banking Group beats profit expectations in third quarter


Lloyds Banking Group announced pre-tax profit of £1.8bn in the third quarter today, beating analyst expectations of £1.7bn.

In the three months to 30 September revenue rose to £4.686bn from £4.62bn during the same quarter last year, while profit before tax dipped seven per cent to £1.8bn.

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For the first nine months of the year profit before tax was £4.93bn, slightly up on the £4.49bn the bank had posted at the same stage last year.

The bank's share price rose by 1.66 per cent this morning.

Chief executive Antonio Horta-Osorio said: “In the first nine months of 2018 we have delivered a strong and sustainable financial performance, with increased profits and returns and continued strong capital build. These results further demonstrate the strength of our business model and the benefits of our low risk, customer focused approach.”

Horta-Osorio said the bank was on track to deliver on previously announced financial targets and guidance.

“We have also made a strong start to our 2018 to 2020 strategic plan. We have been implementing the initiatives which we announced in February as part of our ambitious strategy to transform the group for success in a digital world,” he added.

Lloyds launched a new three year strategy in February aimed at digitising its operations and growing its presence outside of core markets like mortgages.

Separately the bank announced that its chief financial officer George Culmer is planning to retire during the third quarter of 2019.

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Culmer joined the bank in 2012 from insurer RSA where he was also chief financial officer.

Horta-Osorio said: “George has been a crucial member of the team that has helped turn Lloyds around and position it for future success.”

Lloyds has started the search for his successor.