Lloyds Banking Group, owner of Bank of Scotland and Halifax, said its third quarter profit fell 36%, as its performance was dragged down by a previously announced £800 million charge to compensate customers for mis-selling motor finance packages.
Reported pretax profit for the July-September period came in at £1.17 billion, from £1.8 bn in the same period a year ago.
Statutory profit after tax over the first nine months was £3.3bn, against £3.8bn in the same period in 2024.
The group recognised remediation costs of £912 million, including the charge for motor finance commission arrangements, bringing the total motor finance provision to £1.95 billion.
Underlying loans and advances to customers grew by £18bn to £477.1bn, while customer deposits increased by £14bn to £496.7bn.
Nick Sherrard, managing director at Label Sessions, said: “Lloyds’ results paint a relatively positive picture, despite increased provisions for car finance mis-selling hitting profits. Much of the bank’s progress has been built on digital transformation, which has developed real momentum and is creating big upside potential – even if right now customers are angry that their apps went down as part of the wider AWS outage.
“By taking full control of Schroders Personal Wealth, Lloyds has the opportunity to bring an innovative new mass affluent proposition to market. That should be just the first area in which the Lloyds group leverages its capabilities and brands to make some bigger moves in consumer propositions.
“Short-term, the rising bill from car loan mis-selling remediation, and even fears of a windfall tax in the budget, will temper the positivity around Lloyds. It remains the case, though, that this is a strong bank that could be in the right place to make bold moves and open up significant opportunities.”
St James’s Place
Wealth manager St James’s Place has seen funds under management push through £200 billion to a new record.
It reported a strong third quarter, with gross inflows reaching £5.7 billion, a 30% increase on Q3 2024.
Net inflows also saw a significant rise, reaching £1.76bn, up 98% from the previous year. This strong performance, coupled with investment returns, drove closing funds under management to a record £212.36bn as of 30 September, a 12% increase year-to-date.
Funds under management retention rate was 95.2%, compared with 94.6% in the previous year, while the year-to-date net inflows/opening funds under management was 3.9% compared to 2.2%.
Mitchells & Butlers
Pubs group Mitchells & Butlers has announced that Tim Jones, chief financial officer, will be retiring after 15 years of service.
Emma Harris, currently finance director – food at Marks & Spencer, will succeed Mr Jones who joined the company in October 2010 and will remain in his role to oversee the handover, expected early next summer.
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