Lloyds Upgrades Income Guidance Even as Earnings Fall (1)

Lloyds Banking Group Plc raised its outlook for net interest income even as it forecast UK economic growth would be slow and its third-quarter earnings fell more than expected.

The British bank posted a pretax profit of £1.17 billion ($1.6 billion) for the three months through September, down 36% on a year ago and compared to the £1.45 billion analyst estimate compiled by Bloomberg.

Still, Lloyds now expects underlying net interest income to reach £13.6 billion this year, up from a previous forecast of £13.5 billion, according to a statement.

The lender would have also raised its full-year guidance for ...