Lloyds Bank sets aside £668 million to cover loan losses, hails ‘resilient’ mortgage customers

The biggest lender in the United Kingdom, Lloyds Banking Group, has stated that most of its mortgage customers can withstand the pressure caused by the cost-of-living crisis. However, Lloyds has also noted that the group has set aside £668 million to cover loan losses.

In the third quarter, the lender reported a statutory pre-tax profit of £1.5 billion, more than 25 percent below last year's figure of £2 billion.

UK's Lloyds Banking Group to move 1,000 jobs to TCS subsidiary

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The Lloyds had returned to private ownership in May after the UK government sold the last of its stake in the bank.

The Lloyds had returned to private ownership in May after the UK government sold the last of its stake in the bank.

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The recent numbers have also fallen short of the market consensus of about £1.88 billion.


However, Lloyds Banking Group has assured its investors that there was only a 'very modest' indication that its customers struggled with repayments.

The chief financial officer of Lloyd, William Chalmers, stated that their customers have proved themselves to be resilient to the cost-of-living crisis and have adapted well to the current economic circumstances.

He said that the bank was 'deliberately ensuring' to lend to 'slightly better off' customers, who would not face issues paying back their loans if the economic conditions get more challenging. The leading lender added that the numbers of customers who fell into write-offs, defaults, and arrears are low and below pre-pandemic levels.
However, the bank has warned that the base rate could reach 4 percent in 2024 before coming down.

FAQs:

What is Lloyds Banking Group?
Lloyds Banking Group is the largest lender in the United Kingdom.

What has Lloyds Banking Group predicted about the base rate?
Lloyds Banking Group has warned that the base rate could reach 4 percent in 2024 before coming down.