Lloyds Bank profits dip as interest rates come down
- Lloyds Banking Group's pre-tax profits for Q3 2024 fell to £1.8 billion, reflecting a 2 percent decrease from the previous year.
- The bank's net interest margin decreased from 3.08 percent to 2.95 percent, signaling challenges due to lower interest rates.
- Despite falling profits, the bank outperformed analysts' predictions, demonstrating resilience in a competitive mortgage market.
In the third quarter of 2024, profits at Lloyds Banking Group in the UK decreased by 2 percent year-on-year, reaching £1.8 billion. This drop comes as the financial institution faces challenges due to falling interest rates, which significantly impact its profitability. The banking net interest margin, an important metric that indicates the difference between loan charges and deposit payments, declined from 3.08 percent a year prior to 2.95 percent. Despite these financial pressures, Lloyds performed better than the expected decline to £1.6 billion, as predicted by City analysts. Charlie Nunn, the CEO of Lloyds, emphasized the company's strong financial performance, indicating resilience amidst a tougher competitive landscape in the mortgage market. This outcome reflects the ongoing adjustments within the banking sector as it navigates shifting economic conditions and interest rate fluctuations.