Lloyds Banking Group says it is paying back its loan to the Bank of England quicker than it anticipated.
In an interim management statement published today, the bank says the success of its funding strategy has resulted in it being able to “voluntarily accelerate repayments of certain central banking facilities”.
The bank says it has exceeded its full year public term issuance plans of £25bn by the end of September. It has subsequently issued a further £2.5bn of public term issuance.
The statement says the group’s income has experienced good growth in the third quarter of 2010 and it has made good progress in managing the size of its balance sheet. It adds the bank remain on track to deliver its intended balance sheet reduction of £200bn by 2014.
Lloyds says it has helped 35,000 first-time buyers on to the property ladder this year. It also says lending to SMEs and corporates accounts for over £35bn of its total lending.
Outgoing chief executive Eric Daniels, who plans to retire next Autumn, says: “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.”