Lloyds grows lending and direct sales in Q3
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Lloyds Banking Group boosted its mortgage lending by 14% in Q3 and saw an increase in the number of mortgages sold direct.
In an interim statement last week, Lloyds group revealed it did £8.1bn of gross mortgage lending in Q3 2011, up from £7.1bn in Q2. The results show the lender is trying to create a more relationship-focussed business.
In its results Lloyds group 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.”
Mortgage Strategy understands that the group did around £17.1bn worth of gross mortgage lending through brokers in 2010.
A spokeswoman for the lender cannot confirm how much it increased mortgage sales through its branches in Q3.
But she says: “The split between branches and intermediaries is in line with what we have seen historically. There’s no major shift and no strategy to change that.
“Both channels are important to the business and intermediaries continue to write most of the new lending, as they always have.”
Overall the lender 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.
Moody’s warned last week that it could downgrade the group’s credit rating following the announcement that its chief executive Antonio Horta-Osorio has taken a leave of absence on health grounds.
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