Financial Data and Key Metrics Changes - Lending has grown 4.4% since year-end to £388 billion, consistent with an annual growth rate of over 4% over the past six years [3][4] - Income increased to £12.1 billion, up 12.5% compared to the first nine months of the previous year [5][7] - Operating profit reached £5.8 billion, with attributable profit of £4.1 billion, and return on tangible equity at 19.5% [7][8] - Earnings per share grew 32.4% year-on-year, and TNAV per share increased 14.6% to 362 pence [8] Business Line Data and Key Metrics Changes - Mortgage lending rose by over £5 billion for the first nine months, supported by new offers for first-time buyers and family-backed mortgages [4] - Unsecured lending grew by £2.9 billion, or 17.3%, with successful integration of Sainsbury's customers [4] - Commercial and institutional lending increased by £7.9 billion, or 5.5%, particularly in infrastructure and sustainable finance [4][5] - Deposits grew 0.8% to £435 billion, balancing volume with value in a competitive market [5][12] Market Data and Key Metrics Changes - Customer activity remains high, reflecting strong economic conditions with low unemployment and wage growth above inflation [3] - Assets under management and administration increased by 14.5% to £56 billion, contributing to non-interest income growth [5] Company Strategy and Development Direction - The company focuses on disciplined growth, bank-wide simplification, and effective balance sheet and risk management [3][7] - A new share buyback of £750 million was announced, with 50% already executed [8] - The company aims to support large-scale infrastructure programs and has committed £7.6 billion towards its 2030 Climate and Transition Finance target of £200 billion [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic environment, expecting continued growth despite inflation above the Bank of England's target [3] - Full-year guidance for income has been revised to around £16.3 billion, with returns expected to exceed 18% [7][10] - The company anticipates one further base rate cut this year, reaching a terminal rate of 3.75% by year-end [11] Other Important Information - The cost-income ratio improved by five percentage points to 47.8%, with operating expenses up 2.5% to £5.9 billion [7][12] - The CET1 ratio ended the third quarter at 14.2%, up 60 basis points from the previous quarter [15][16] Q&A Session Summary Question: Deposit momentum and non-interest income drivers - Management noted a £3.5 billion increase in deposits year-to-date, with varying trends across business lines [20] - Non-interest income showed strong momentum, particularly in cards, payments, and capital markets [23] Question: Cost growth expectations - Management reiterated cost guidance for the year, emphasizing ongoing simplification efforts [31][32] Question: Capital and CRD4 impact - Limited CRD4 impact was noted in the quarter, with expectations for more material effects in Q4 [35] Question: Loan growth sustainability - Management expressed confidence in maintaining above-market loan growth, particularly in commercial and institutional sectors [61] Question: CET1 ratio target and deferred tax assets - Management indicated ongoing discussions regarding CET1 targets, with expectations for reduced capital requirements under Basel 3.1 [83][84]