This result, while slightly lower than the previous year, surpassed analyst predictions of £1.6bn.

Despite a dip in net interest income due to customers refinancing mortgages at lower rates, Lloyds noted increased consumer confidence. Spending on non-essential items rose by 5% and charitable donations increased by 25%, while spending on energy bills fell by almost 20%.

Charlie Nunn, Lloyds Group CEO, said: “The group delivered a robust financial performance in the third quarter of 2024, with growth in income alongside continued cost discipline and strong asset quality.

“Our performance allows us confidently to reaffirm our 2024 guidance. As mentioned during our Half-Year 2024 results update, we are making good progress on our strategy and remain on track to deliver higher, more sustainable returns.

“As ever, we are guided by our purpose of Helping Britain Prosper and continuing to provide support to our customers. The strength of the group’s franchise, alongside our financial
performance, enables us to deliver for all stakeholders.”