REG - Lloyds Banking Group - Interim Management Statement <Origin Href="QuoteRef">LLOY.L</Origin> - Part 2

Lloyds BankingAnnouncement

30/10/2014 06:15

- Part 2: For the preceding part double click  ID:nRSb4220Va 

                         £m                              £m                         £m              £m          £m             £m       
                                                                                                                                                                                           
 Net interest income                            8,090                       5                               −                          278             −           465            8,838    
 Other income, net of insurance claims          4,067                       1,071                           197                        (372)           −           97             5,060    
 Total income                           12,157              1,076                               197                       (94)                      −         562         13,898  
 Operating expenses3                            (9,677)                     646                             −                          94              2,000       30             (6,907)  
 Impairment                                     (866)                       (30)                            −                          −               −           (121)          (1,017)  
 Profit before tax                              1,614                       1,692                           197                        −               2,000       471            5,974    
                                                                                                                                                                                             
 
 
                                                                     Removal of:                                   
 Nine months to 30 September 2013         Lloyds      Acquisition    Volatility          Insurance   Legal and     Fair value   Underlying   
                                          Banking     related and    relating to  the    gross up    regulatory    unwind       basis        
                                          Group       other items4   insurance                       provisions2                             
                                          statutory                  business                                                                
                                          £m                         £m                              £m                         £m             £m       £m       £m       
                                                                                                                                                                          
 Net interest income                      4,972                      (16)                            5                          2,576          −        430      7,967    
 Other income, net of insurance claims    9,232                      112                             (642)                      (2,699)        −        49       6,052    
 Total income                             14,204                     96                              (637)                      (123)          −        479      14,019   
 Operating expenses3                      (10,217)                   1,618                           −                          123            1,325    41       (7,110)  
 Impairment                               (2,293)                    239                             −                          −              −        (429)    (2,483)  
 Profit (loss) before tax                 1,694                      1,953                           (637)                      −              1,325    91       4,426    
                                                                                                                                                                            
 
 
 1  Comprises the effects of asset sales (gain of £79 million), volatile items (gain of £214 million), liability management (loss of £1,378 million),  Simplification costs related to severance, IT and business costs of implementation (£650 million), TSB costs (£414 million), the past service pensions credit (£710 million) and the amortisation of purchased intangibles (£253 million).  
 2  Comprises the payment protection insurance provision (nine months to 30 September 2014: £1,500 million; nine months to 30 September 2013: £1,250 million) and other regulatory provisions (nine months to 30 September 2014: £500 million; nine months to 30 September 2013: £75 million).                                                                                                     
 3  On an underlying basis, this is described as total costs.                                                                                                                                                                                                                                                                                                                                      
 4  Comprises the effects of asset sales (gain of £149 million), volatile items (loss of £410 million), liability management (loss of £97 million),  Simplification costs related to severance, IT and business costs of implementation (£608 million), TSB costs (£586 million), the past service pensions charge (£104 million) and the amortisation of purchased intangibles (£297 million).    
 
 
APPENDIX 2 
 
QUARTERLY UNDERLYING BASIS INFORMATION 
 
                                   Quarter      Quarter      Quarter   
                                   ended        ended        ended     
                                   30 Sept      30 June      31 Mar    
                                   2014         2014         2014      
                                   £m           £m           £m        
                                                                       
 Net interest income               3,034        2,993        2,811     
 Other income                      1,612        1,730        1,718     
 Total income                      4,646        4,723        4,529     
 Total costs                       (2,232)      (2,377)      (2,298)   
 Impairment                        (259)        (327)        (431)     
 Underlying profit                 2,155        2,019        1,800     
 Asset sales and other items       (186)        (1,687)      120       
 Simplification and TSB costs      (236)        (362)        (466)     
 Legacy provisions                 (900)        (1,100)      −         
 Other items                       (82)         624          (85)      
 Statutory profit (loss)           751          (506)        1,369     
                                                                       
 Banking net interest margin       2.51%        2.48%        2.32%     
 Asset quality ratio               0.20%        0.26%        0.35%     
 Return on risk-weighted assets    3.37%        3.09%        2.71%     
 Cost:income ratio                 48.0%        50.3%        50.7%     
 
 
                                   Quarter     Quarter      Quarter      Quarter   
                                   ended       ended        ended        ended     
                                   31 Dec      30 Sept      30 June      31 Mar    
                                   2013        2013         2013         2013      
                                   £m          £m           £m           £m        
                                                                                   
 Net interest income               2,918       2,761        2,653        2,552     
 Other income                      1,754       1,776        1,872        1,857     
 St. James's Place                 114         18           50           480       
 Total income                      4,786       4,555        4,575        4,889     
 Total costs                       (2,525)     (2,361)      (2,341)      (2,408)   
 Impairment                        (521)       (670)        (811)        (1,002)   
 Underlying profit                 1,740       1,524        1,423        1,479     
 Asset sales and other items       (468)       (709)        (176)        1,073     
 Simplification and TSB costs      (323)       (408)        (377)        (409)     
 Legacy provisions                 (2,130)     (750)        (575)        −         
 Other items                       (98)        (97)         (201)        (103)     
 Statutory (loss) profit           (1,279)     (440)        94           2,040     
                                                                                   
 Banking net interest margin       2.29%       2.17%        2.06%        1.96%     
 Asset quality ratio               0.40%       0.51%        0.57%        0.80%     
 Return on risk-weighted assets    2.55%       2.14%        1.93%        1.96%     
 Cost:income ratio1                54.0%       52.0%        51.7%        53.6%     
 
 
 1  Excluding impact of St. James's Place.  
 
 
CONTACTS 
 
For further information please contact: 
 
INVESTORS AND ANALYSTS 
 
Douglas Radcliffe 
 
Interim Investor Relations Director 
 
020 7356 1571 
 
douglas.radcliffe@finance.lloydsbanking.com 
 
Mike Butters 
 
Director of Investor Relations 
 
020 7356 1187 
 
mike.butters@finance.lloydsbanking.com 
 
Duncan Heath 
 
Director of Investor Relations 
 
020 7356 1585 
 
duncan.heath@finance.lloydsbanking.com 
 
CORPORATE AFFAIRS 
 
Matthew Young 
 
Group Corporate Affairs Director 
 
020 7356 2231 
 
matt.young@lloydsbanking.com 
 
Ed Petter 
 
Group Media Relations Director 
 
020 8936 5655 
 
ed.petter@lloydsbanking.com 
 
Copies of this interim management statement may be obtained from: 
 
Investor Relations, Lloyds Banking Group plc, 25 Gresham Street, London EC2V
7HN 
 
The statement can also be found on the Group's website -
www.lloydsbankinggroup.com 
 
Registered office: Lloyds Banking Group plc, The Mound, Edinburgh EH1 1YZ 
 
Registered in Scotland no. SC95000 
 
This information is provided by RNS
The company news service from the London Stock Exchange