Lloyds Banking Group reported a slight decline in its recent earnings, although it noted improved consumer financial confidence.
The bank posted a pre-tax profit of £1.8 billion for the period from July to September, down approximately 2% from the £1.9 billion earned in the same period last year.
However, this figure still exceeded analysts’ expectations, forecasting a third-quarter profit of £1.6 billion.
Lloyds also reported an 8% decrease in underlying net interest income, which fell to £9.6 billion, as its banking net interest margin dropped to 2.94%.
Following a decrease in inflation to the 2% target, the Bank of England has started to lower interest rates.
Furthermore, Lloyds observed a 5% increase in its customers’ spending on non-essential items over the first nine months of the year, alongside a nearly 20% reduction in average spending on energy bills.
