Lloyds Banking Group has returned to profit in the third quarter after taking serious hits from the Covid-19 pandemic earlier in the year.
The bank made £1.04bn profit before tax across the three months, on net income of £3.4bn.
The profit was far ahead of last year’s £50m , and also nearly twice the £588m that analysts had predicted.
Lloyds took impairments of £301m, more than £400m less than expected, and said that its full-year impairments will be at the lower end of the £4.5bn to £5.5bn that it had earmarked for a tough year.
Lloyds chief executive Antonio Horta-Osorio said: “Although our performance has clearly been impacted by the pandemic and the associated challenging economic environment, I am pleased that we are now seeing an encouraging business recovery and, with impairments significantly lower, a return to profitability in the third quarter.”
He added: “The pandemic has accelerated many trends around ways of working and digital adoption and our long-run investment in digital propositions has positioned the group well to continue to support our customers.
“As a result, the number of digital users continued to increase, the proportion of products sold digitally is rising and customer satisfaction is at record levels. Our digital proposition and focus on technological change will remain a priority as we accelerate our transformation.”