Lloyds banking group has seen improved margins and incomes across its operations for the third quarter of the year.
In the three months to September 2017, underlying profits, which exclude one-off gains and expenses, rose 8% year-on-year to £2bn.
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This was largely thanks to higher banking margins, up 2 percentage points to 2.90%, which led to a 12% rise in net interest income.
The loan book stood stable to £455bn.
Impairments rose significantly, up 32% to £270m, but in line with the rise in income. The bank stated that its “continued prudent approach to credit risk appetite” kept portfolio quality solid.
It singled out motor finance operations, which benefitted “from conservative residual values”, and the reductions in persistent debt for the credit card book.
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By GlobalDataAntónio Horta-Osório, group chief executive, said: “These results highlight the strength of our customer focused, simple and low risk business model and the benefits of our competitive advantage in the UK.
“We continue to focus on supporting people, businesses and communities, as set out in our Helping Britain Prosper Plan, while making good progress against our strategic priorities of creating the best customer experience.
“A new organisational structure has also been implemented ahead of the announcement of our strategic review in February.”
