Lloyds Banking Group has reported a statutory profit before tax of £811m for the third quarter of 2016, a decline of 15% from £958m a year earlier.

For the quarter ended 30 September 2016, the bank's underlying profit stood at £1.91bn, down 3% from £1.97bn in the year ago quarter. 

The decrease in profit was driven by a £1bn charge relating to PPI in the third quarter, the British lender said in its earnings statement.

Net interest income was £2.85bn, a decrease of 1% from £2.86bn in the third quarter of 2015.. The bank’s leverage ratio at the end of the third quarter of 2016 was 4.8%.

Lloyds Banking Group CEO Antonio Horta-Osorio said: “The hard work undertaken in the last five years to transform and simplify the business has allowed the UK government to sell most of its stake in the Group, returning £17 billion including dividends on its original £20 billion investment. We welcome the recent decision to recommence the sale of its shares.

“The outlook for the UK economy remains uncertain, however the strength of the recovery in recent years means the UK is well positioned. The Group’s transformation and successful execution of strategy, along with its competitive advantages in costs and risk, also position us well for the future and to achieve our goal of becoming the best bank for customers and shareholders.”