Lloyds Banking Group has reaffirmed its 2023 guidance following a better-than-expected rise in pretax profit for the third quarter. The British bank reported a pretax profit of £1.86 billion for the three months ending September 30, surpassing the restated £576 million from the same period last year and the expected £1.82 billion consensus.
Net income also increased to £4.51 billion, slightly below the £4.56 billion estimate. Net interest income contributed £3.44 billion, falling just short of the expected £3.48 billion. Lloyds’ banking net interest margin for the quarter was 3.08%, slightly below the anticipated 3.10%.
Impressively, Lloyds achieved a return on tangible equity of 16.9% for the quarter, surpassing the consensus of 15.7%.
Looking ahead, the company revised its asset quality ratio for 2023 to be less than 30 basis points, as compared to the previous target of around 30 basis points. Furthermore, Lloyds reaffirmed its other targets for the year, including a banking net interest margin above 3.10%, operating costs of approximately £9.1 billion, a return on tangible equity surpassing 14%, and a capital generation of around 175 basis points.
These solid financial results showcase Lloyds Banking Group’s ongoing commitment to delivering strong performance and meeting its strategic objectives.
