Lloyds Bank beats profit forecasts and cuts costs as finance chief announces retirement

The bank has been investing in its robotics offering: Reuters

Profits fell 7 per cent at Lloyds Banking Group in the three months to 30 September despite total income edging up by 1 per cent.

The bank reported pre-tax profit of £1.8bn, beating forecasts of £1.7bn, in the third quarter, while profit for the first nine months of the year rose 10 per cent to £4.9bn. Costs dropped by 3 per cent to £6.4bn.

Lloyds chief executive António Horta-Osório said the group had “delivered a strong and sustainable financial performance, with increased profits and returns and continued strong capital build”.

He added: “These results further demonstrate the strength of our business model and the benefits of our low risk, customer focused approach.

“We have also made a strong start to our 2018 to 2020 strategic plan.

“We have been implementing the initiatives which we announced in February as part of our ambitious strategy to transform the group for success in a digital world.

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

Meanwhile, the bank’s chief financial officer George Culmer announced his plans to retire in the third quarter of next year. He joined the bank in 2012, and previously worked at RSA and Zurich.

Mr Horta-Osório said: “George has been a crucial member of the team that has helped turn Lloyds around and position it for future success. He has a great mind and great judgement and, in short, has been an outstanding CFO.

“We are grateful that he has timed his retirement so that he will be with us until after next year’s interim results and we will be sorry to see him go.”

Shares were relatively flat in early trading, edging down by less than 0.1 per cent.