Lloyds Banking Group has reported a statutory profit before tax of £958m for the third quarter of 2015, up 27.5% compared to £751m in the year-ago quarter.
For the quarter ended 30 September 2015, the bank’s underlying profit declined 8.4% to £1.97bn from £2.15bn a year earlier.
Net interest income increased to £2.86bn from £2.84bn a year ago, while total income dropped 4.1% to £4.24bn from £4.42bn. The group’s leverage ratio at the end of the third quarter was 5%.
The bank said it set aside another £500m in this quarter to compensate customers over the mis-selling of Payment Protection Insurance (PPI), a decline from the £900m in the third quarter of 2014.
Commenting on the group’s performance, Lloyds Banking Group CEO António Horta-Osório said: "Our financial performance continues to demonstrate the strength of our business model, with underlying profit up by 6 per cent to £6,355 million in the nine months to the end of September. This was largely driven by a significant reduction in impairment charges and lower costs, and led to an improvement in our underlying return on required equity to 15.7%.
"Underlying profit was, however, lower in the third quarter than last year, reflecting lower than expected other income, partly offset by improvements in impairments and costs. While other income is expected to recover in the fourth quarter, we now expect it to be slightly below 2014 for the full year."