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lloyds The banking group reported a 36% fall in third-quarter earnings as it felt the impact of an £800 million charge to compensate customers for car loans that were mis-sold to them.
The bank recorded a pre-tax profit of £1.2 billion between July and September.
This was more than a third less than the £1.8 billion profit in the same period the previous year, although it was more than the £1 billion profit most analysts were expecting.
The group’s latest results take into account setting aside more funds to cover potential costs related to the UK regulator’s motor finance compensation scheme.
It took an additional charge of £800 million in the third quarter, bringing its total compensation bill to an estimated £1.95 billion.
Lloyds said its lending, including mortgages, credit cards and motor finance, is expected to grow through 2025.
Current account and savings account balances also increased this year as its customers spent less and saved more.
Chief executive Charlie Nunn said: “The group continues to perform well, demonstrating strategic progress as well as strong financial performance, including our recent acquisitions.” schroders Personal property.”
Mr Nunn said the bank benefited from income growth and cost savings “despite the impact of additional motor finance charges in the third quarter”.