Lloyds Banking Group has revealed stronger-than-expected earnings over recent months, as the lender said it was seeing signs of improved confidence among consumers.
The banking giant reported a pre-tax profit of £1.8 billion between July and September, about 2% lower than the £1.9 billion generated this time last year.
It nevertheless came in significantly ahead of the expectations of analysts, who had been anticipating a profit of about £1.6 billion for the third quarter.
The bank said its underlying net interest income – meaning the amount it generates from loans minus what it pays out on savings – declined 6% year on year.
This came as its customers continued to refinance their mortgages on to lower-rate deals, in line with UK interest rates starting to come down.
Meanwhile, Lloyds said its customers were showing increasing financial confidence as cost-of-living pressures continue to ease.
It revealed a 5% increase in spending on non-essential items among its customers over the first nine months of the year, while average spending on energy bills dropped nearly 20%.
The bank also highlighted that average spending on charitable giving was about a quarter higher than this time last year.
Charlie Nunn, Lloyds’ chief executive, said the bank was “making good progress on our strategy and remain on track to deliver higher, more sustainable returns” while “continuing to provide support to our customers”.
This article was written by Anna Wise from The Independent and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.