Skip navigation

Gloucestershire Business News

Lloyds Bank profits plunge

Profits at Lloyds Banking Group dropped by 26 per cent in the three months to September.

The UK's "deteriorating" economic outlook forced it to put aside nearly £670m to protect against potential defaults on loans and mortgages, the Guardian reported.

Lloyds, which owns Halifax and is the country's largest mortgage lender, has a major base at Barnwood, Gloucester.

The bank said pre-tax profits had tumbled to £1.5bn in the third quarter, down from £2bn during the same period last year. That was larger than the 9.5 per cent fall to £1.8bn that analysts had predicted.

This larger-than-expected drop in profits was despite a rise in interest rates, which have increased the cost of borrowing for loan and mortgage customers but propped up a key revenue stream for banks.

Lloyds reported a 19 per cent rise in net interest income, which accounts for the difference between interest earned on loans and paid out for savings, to £3.4bn.

The bank put aside £668m to protect itself against bad loans, fearing some loan and mortgage customers could default on their debts.

That figure is more than double the £285m analysts had expected, and compares with the £119m that Lloyds released last year, having originally put aside more money to protect against bad loans during the Covid pandemic.

Related Articles

Walkout Wednesday: Businesses and families hit by strikes Image

Walkout Wednesday: Businesses and families hit by strikes

Up to half a million workers are walking out today in the biggest day of strikes for years.

BBC staff to hold ballot over local radio cutbacks Image

BBC staff to hold ballot over local radio cutbacks

BBC journalists are to vote on industrial action in a dispute over planned changes to local radio programming.

Business confidence in South West in positive territory Image

Business confidence in South West in positive territory

A monthly Business Barometer in the South West has provided 'grounds for optimism'.

Fly-tipping figures ‘fail to reflect full scale of crime’  Image

Fly-tipping figures ‘fail to reflect full scale of crime’

The number of fly-tipping incidents across nine regions in the South West has soared in the past year, according to the latest figures.

Copyright 2023 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.