Lloyds Banking Group recorded a pre-tax profit decline of 26 per cent for the third quarter of the year, as the bank warned of a "concerning" economic environment.

Profits dropped from around £2 billion compared to the same period of 2021 to £1.5 billion.

The bank reported an underlying impairment of £688 million for the quarter which it said was impacted by the "weakening economic outlook".

The figures follow a profit decline of £200 million in the first six months of the year.

Post-tax profits were down 27 per cent to £2.8 billion, which the bank said was due to £377 million set aside for loan defaults.

Lloyds said that the impairment charge had been driven by additional risks from a higher inflation and interest rates.

"The current environment is concerning for many people and we are committed to maintaining support for our customers," said Charlie Nunn, group chief executive, Lloyds Banking Group.
The Group’s resilient business model and prudent approach to risk position the Group well to face the current macroeconomic uncertainties while generating enhanced returns for our shareholders.”

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