The Lloyds Banking Group has yesterday reported a net loss of £1.3 billion (US$2.25 billion) in the quarter ended 30 September2013, compared with a loss of £374 million (US$599 million) in the year ago period.
Lloyds, which is 33% owned by the government, said its overall performance was weighed down by losses of £709 million on asset sales.
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The lenders total underlying income for the quarter was £4.55 billion, a decline of 1% compared to £4.58 billion in the third quarter of 2012.
However, the lenders underlying profit surged 83% to £1.52 billion from £831 million in the year ago period.
The bank revealed that the amount it had to set aside for bad loans and other impairment charges in the third quarter fell by almost half, to £670 million.
Lloyds took an additional charge of £750 million on this so-called payment protection insurance in the third quarter.
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By GlobalDataLloyds added that it had already set aside £7.3 billion to compensate claims.
Commenting on the results, António Horta-Osório, group chief executive, said: "The third quarter was an especially significant one for the Group. We returned the TSB bank to the high street and launched a rebranded, revitalised Lloyds Bank. Our strategic plan continues to deliver and customers are increasingly seeing the benefits.
"At the same time we are creating a low cost, low risk differentiated business, resulting in better profitability and returns despite further legacy charges. Together with the actions outlined earlier, these are key milestones not just for Lloyds Banking Group but also for UK banking," he added.
