British bank Lloyds on Thursday announced a return to the green in the third quarter with a profit of 688 million pounds thanks to a recovery in the economy and a drop in provisions for delinquencies in the face of the pandemic.
Lloyds, one of the largest retail banks in the UK, suffered a loss of £ 461million in the second quarter amid the shock of the health crisis, a statement said. In the third quarter of 2019, it had suffered a loss of 238 million pounds, then weighed down by the credit insurance scandal.
“I am pleased to see an encouraging recovery in activity and, with much lower delinquency provisions, a return to profit in the third quarter.», Says António Horta-Osório, Managing Director of Lloyds.
He acknowledges that the bank remains disrupted by the pandemic, but it is however benefiting from the rebound in the economy seen over the summer, after a collapse during containment. Its turnover mainly benefited from mortgage applications and consumer spending. And it welcomes the growing number of its customers using its online services, which is one of the bank’s strategic priorities.
Its provisions had reached nearly 4 billion over the whole of the first half, mainly because of the damage of the health crisis and the confinement on economic activity in the country. The bank still expects them to be between £ 4.5bn and £ 5.5bn for the whole of 2020, but now specifies that they will be in the lower end of that estimate.