Lloyds Bank Q3 profits surge despite lower lending

(Sharecast News) - Lloyds Bank reported a massive jump in third quarter profits as it continued to cash in on higher interest rates, despite a reduction in lending to customers amid tough macroeconomic conditions.

Pre-tax profit for the three months to September 30 soared to £1.85bn from £576m a year earlier.

Underlying net interest income rose 1% to £3.44bn with the net interest margin - the difference between loans and savings rates - up 10 basis points year on year to 3.08% but down six basis points in the quarter "given the expected mortgage and deposit pricing headwinds", the bank said on Wednesday.

Loans and advances to customers fell 1% to £455bn.

Reporting by Frank Prenesti for Sharecast.com