Lloyds Banking Group has reported £3.2bn of mortgage book growth for the Q3 period and a statutory profit after tax of £3.8bn.
The lending group no longer reports its open book, closed book and mortgage advances separately, and now presents the figures under UK mortgages.
For the year to date, it saw a £3.9bn rise in mortgages or £4.8bn excluding the impact of the securitisation of £900m of legacy mortgages in Q2.
Its mortgage loan book now stands at £310.1bn, compared to £306.9bn as of June this year and £306.2bn as of December 2023.
Over the first nine months of 2024, Lloyds’ underlying loans and advances to customers rose by £7.3bn to £457bn.
During the third quarter of this year, it saw a £4.6bn growth which it attributed to a rise in balance increases across its retail arm.
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The group’s underlying net interest income fell by 8% annually to £9.6bn during the year to September, which Lloyds said was driven by a lower net interest margin of 2.94%. This was down from a net interest margin of 3.15% during the same period in 2023.
Lloyds said this was in line with expectations, as the lower margin reflected “anticipated headwinds due to deposit churn and asset margin compression, particularly in the mortgage book as it refinances in a lower margin environment”.
A profit drop
Lloyds posted a statutory profit after tax of £3.8bn for the nine months to September, lower than the £4.3bn reported last year.
It said a lower impairment charge partially offset the 7% fall in net income and 5% rise in operating costs. This declined from £843m to £272m year-on-year.
Lloyds’ underlying expected credit loss (ECL) allowance was reduced from £4.3bn to £3.8bn, due to improvements in its outlook.
Charlie Nunn, chief executive of Lloyds Banking Group, 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. Our performance allows us confidently to reaffirm our 2024 guidance.
“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.
As ever, we are guided by our purpose of ‘Helping Britain Prosper’ and continuing to provide support to our customers. The strength of the group’s franchise, alongside our financial performance, enables us to deliver for all stakeholders.”
