By Sabela Ojea

 

Lloyds Banking Group PLC on Thursday reported earnings for the third quarter of 2020. Here's what you need to know:

 

PRETAX PROFIT: Lloyds posted a pretax profit of GBP1.04 billion in the third quarter of 2020 compared with GBP50 million for the same period a year earlier. Pretax profit had been expected to amount to GBP588 million.

 

NET INCOME: The FTSE 100 bank's net income fell to GBP3.40 billion compared with GBP4.19 billion for the same period a year earlier. It was expected to fall to GBP3.37 billion.

 

WHAT WE WATCHED:

 

-IMPAIRMENTS: Lloyds had an impairment charge of GBP301 million, down from the GBP2.39 billion and GBP1.43 billion impairments it booked in the second quarter and first quarter of the year respectively due to the coronavirus pandemic. Impairments were anticipated to reach GBP721 million, according to the bank's own compilation of forecasts.

-COSTS: The bank booked costs of GBP1.94 billion, which were higher than market expectations of GBP1.91 billion, according to the bank's compilation of consensus.

-CET1: Lloyds' Common Equity Tier 1 ratio --a measure of a bank's financial strength-- stood at 15.2%, up from 13.8% as at Dec. 31, 2019. It was anticipated to reach 14.4%.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

October 29, 2020 11:54 ET (15:54 GMT)

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