Better-than-expected Q3 for Bank of Scotland owner Lloyds

Bank of Scotland owner Lloyds Banking Group has reported a better-than-expected set of third-quarter results as the lender continues a strong run of form.

The lender, which owns Bank of Scotland, saw a 7 per cent fall in profits in the quarter. Picture: Louise Kerr.

The bank saw a 7 per cent fall in profits to £1.82 billion in the three months to 30 September after it was hit by increased restructuring costs.

However, the figure was above consensus estimates of £1.7bn and total income for the quarter came to £4.69bn, an increase of 1 per cent.

In addition, the bank’s net interest margin - the difference between the interest received from borrowers and the amount paid out on deposits - held steady at 2.93 per cent.

Lloyds boss Antonio Horta-Osorio said: “These results further demonstrate the strength of our business model and the benefits of our low-risk, customer-focused approach.

“As planned, our strategic investment has accelerated and is already delivering real benefits to customers, whilst operating costs continue to reduce.”

The group, which also owns Scottish Widows, booked £235 million in restructuring costs to cover the likes of redundancy payments to workers as it pushes ahead with a three-year strategy which will see it focus on digital banking.

The bank has been undergoing an overhaul of its workforce and branch network, having announced hundreds of job cuts and branch closures over the past 12 months.

The group also announced the departure of finance chief George Culmer, who will retire from the company in 2019.