Lloyds Banking Group PLC has released its Q3 2023 Interim Management Statement, reporting a profit before tax of £5.36 billion for the first nine months of 2023, a 20% increase compared to the same period in 2022. Total income for the period was £13.7 billion, a 13% increase, primarily driven by higher net interest income. Net interest income rose by 10% to £10.43 billion, supported by a stronger net interest margin and higher average interest-earning banking assets. Other income also increased, with net trading income up by £143 million and other operating income up by £427 million.
Operating expenses for the first nine months of 2023 were £7.46 billion, a 12% increase compared to the prior year. This was mainly due to planned strategic investment, new business costs, higher operating lease depreciation charges, and inflationary impacts. The Group recognized remediation costs of £127 million during the period, largely related to pre-existing programs. The impairment charge for the period was £881 million, lower than the £1.01 billion charge in the same period in 2022, reflecting modest revisions to the Group's economic outlook.
Total assets decreased by £2.9 billion to £614.03 billion at the end of September 2023. This was primarily due to a decrease in cash and balances at central banks, as well as a reduction in loans and advances to customers. Total liabilities decreased by £2.49 billion to £575.38 billion, mainly driven by a decrease in customer deposits and repurchase agreements at amortized cost.
Overall, Lloyds Banking Group's financial performance for the first nine months of 2023 showed growth in profit before tax and total income, supported by higher net interest income. However, operating expenses also increased, and the Group recognized remediation costs. The impairment charge decreased compared to the prior year, reflecting modest revisions to the economic outlook. Total assets and liabilities decreased during the period.