Lloyds (LON: LLOY) has reported a pre-tax profit of £1bn, beating expectations for the third quarter.
After posting a loss in the first half of the year, the lender has returned to profitability after a surge in demand for home loans.
This quarter has seen the biggest growth in demand for home loans since 2008, which led to mortgage lending at the bank of £3.5bn.
The temporary stamp-duty holiday has led to a boom in the housing market, also helped by people wanting more space amid the pandemic.
Chief executive Antonio Horto-Osario commented: “Although our performance has clearly been impacted by the pandemic and the associated challenging economic environment, I am pleased that we are now seeing an encouraging business recovery and, with impairments significantly lower, a return to profitability in the third quarter.”
“Our customer-focused strategy and the strength of the group’s business model will allow us to continue to help Britain recover and play our part in helping to return the UK to prosperity.”
Horta-Osorio will be leaving the lender next year after a decade at the helm.
Lloyds shares (LON: LLOY) opened 2.6% at 28.37p. Shares this year have fallen 53% from previous highs of 69.99p.