Lloyds reports £3.9bn loss but increases mortgage lending
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Lloyds Banking Group has reported a £3.9bn loss for the first nine months of 2011, compared with a £2bn profit a year earlier.
The loss is mainly due to the £3.2bn cost of settling claims for mis-selling payment protection insurance.
However, Lloyds group carried out £8.1bn of gross mortgage lending in Q3 2011, up from £7.1bn in Q2.
In a statement today, the bank reveals its lending in the first nine months equated to £21bn, and that it increased its lending through its branch network – but does not reveal by how much.
Its results says: “In retail the relationship strategy has enabled us to maintain deposit growth in excess of market growth and increase the value of our mortgages sold through the branch network.
“We advanced over £21bn of mortgages in the first nine months of the year, of which more than £4bn was to first-time buyers.”
The group has achieved a market share of over 20% in gross new residential mortgage lending in the UK in the first nine months of 2011.
During the first nine months of 2011, Lloyds group says the secured impairment charge was £416m, an increase on 2010, but in line with expectations. It says the relatively low impairment charge of £108m in the first nine months of 2010 was driven by a more favourable outlook for house prices against a background of stable arrears.
The proportion of the mortgage portfolio with an indexed LTV of greater than 100% has decreased since the half-year, but still stands at 11.4%, while the value of the portfolio with an indexed LTV of greater than 100% and more than three months in arrears has been stable at £3.1bn.
Impairment provisions as a percentage of impaired loans increased from 22.6% at 30 September 2010 to 25.6% at 30 September 2011.
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