The group, which includes Halifax Bank of Scotland, BM solutions and Lloyds, lent 10.2% less to mortgage borrowers in the first nine months of the year than it did over the same period in 2014.
Over the period from January to end of September the bank lent £27.1bn – down from £30.2bn in the first nine months of last year. In Q3 the bank lent £11.1bn to borrowers.
The lender also set aside a further £500m to cover further payment protection insurance redress and £100m for mis-selling through its bank branches, taking its total PPI bill to £13.9bn.
Pre-tax profits meanwhile rose 28% to £958m during the quarter, up from £751m during the same period last year.
The results statement said: “The group continues to support the UK economy by delivering on its key commitments to households and businesses within the Helping Britain Prosper Plan, providing approximately one in four first-time buyer mortgages and supporting one in five new business start-ups in the nine months to the end of September.
“Mortgages are up 1% and although this is slightly below market growth, this has been a conscious decision to protect margin in a low growth market environment and a competitive market.”
