Lloyds on track to pay back taxpayer early

Sarah Davidson

November 2, 2010

The group exceeded initial full year public term issuance plans of £25 billion by the end of September and subsequently issued a further £2.5 billion of public term issuance.

An interim statement issued this morning said: “As a result of the success of our funding plans, we have been able to voluntarily accelerate repayments of certain central bank facilities.”

The group also reported that within the retail division, new business credit quality on both the secured and unsecured books remained strong in the third quarter.

Lloyds said the numbers of mortgage customers entering arrears and new repossessions have remained stable relative to the first half.

The statement also said: “We have delivered good underlying income growth in our core businesses, lower costs through continued strong integration delivery, and remain on track to deliver moderately lower impairments at a Group level in the second half of the year.

“Good progress continues to be made in reducing the size of the balance sheet. Reductions continue to be achieved in the portfolios identified for run off at a similar pace to that seen in the first half.

Eric Daniels, group chief executive, said: “I am pleased to report that we had a good third quarter in our core business as we continue to deliver against the group guidance we provided at the interims.

“Core income growth, margin improvement, integration savings, funding progress and balance sheet reduction all remain on target, giving us confidence that we will deliver a good financial performance for the current financial year.”

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