(Corrects profit at second paragraph to 2. bln, not 1.6 billion)

LONDON – Lloyds Banking Group, LON:, posted a greater than anticipated profit for its third quarter. The result was due to Britain’s recovery from pandemic lockdowns. Chief Executive Charlie Nunn received his first earnings reports at the bellwether banking institution.

The pretax profit of Britain’s largest mortgage lender was 2 billion pounds ($2.20 trillion) in the period July-September, as compared with 1.3 billion pounds according to average analyst predictions. In the same period last fiscal year, it reported a profit of 1 billion pounds.

Like rivals Barclays (LON.) and HSBC. Lloyds’ financial results were boosted last year by the release of 84 million pounds of cash it had saved for bad loans.

Given its solid performance and improved economic outlook, the bank stated that it would be improving its guidance this year. According to the bank, loan impairments are expected to amount to net credit and return on tangible equity (a critical measure of profitability) will exceed 10% for the year.

Nunn is a former HSBC veteran and took over at Lloyds as the head in August. He replaced Antonio Horta Osorio, who had left in early 2012 to lead crisis-hit operations. Credit Suisse (SIX)

Nunn inherits an institution that was established by his predecessor. However, Nunn faces the challenge of increasing returns in light of near-zero benchmark rates and increased competition from digital competitors.

Nunn stated that there are “clearly significant opportunities for Lloyds Banking Group (NYSE:) Group” to expand its capabilities, strengthen its platforms, and grow.

($1 = 0.7277 pounds)