Lloyds profits drop by 26% as bad debt charges rise
Profits at Lloyds bank dropped by a quarter in the three months to September as the lender sharply pushed up its provisions for bad debts, offsetting the boost it received from rising interest rates.
The UK bank said on Thursday that its pre-tax profit for the third quarter was £1.5bn, down 26 per cent year on year and well below analysts’ forecast of £1.8bn.
Lloyds took £668mn of provisions for potential defaults, compared to a release of £119mn in the same period last year and above analysts’ estimate of £285mn.
This story originally appeared on: Financial Times - Author:Siddharth Venkataramakrishnan
