Lloyds profits nearly double to £2.3bn a day after the Chancellor hiked bank taxes to fund energy bill support
Lloyds' return on tangible equity reached 19.5 per cent in the quarter, well above its full-year guidance of around 16 per cent.
Lloyds Banking Group's finance chief William Chalmers called yesterday's Budget bank tax hike "unhelpful" to growth even as the lender reported a near-doubling of pre-tax profit to £2.3bn for the third quarter. Chalmers said he "sincerely hopes" the temporary 3% surcharge on corporation tax remains short-lived. Shares fell over three per cent despite the strong results.
The profit surge was largely driven by the absence of the £800m motor finance provision that savaged last year's Q3 figure.
Chancellor John Healey's tax hike is expected to raise £1.5bn over 15 months to fund household energy bill support.
Net interest income jumped 10% to £11.1bn, with boss Charlie Nunn pointing to 'sustained strength in financial performance.'
