Reflecting on our 2021 Q3 results
first-time buyers to purchase homes so far this year.
Q3 financial breakdown
The first nine months of the year has seen a solid financial performance, with continued business momentum and improved macroeconomic assumptions. Net income is £11.6 billion up 8% year on year; with the third quarter up 5% on the previous quarter.
We remain committed to efficiency with a cost:income ratio for the year to date of 52.6%, as we continue to improve our position.
Statutory profit before tax was £5.9 billion for the nine months, significantly up year on year, and we have also delivered continued balance sheet growth and seen significant capital build. The CET1 ratio now stands at 17.2%, up from 16.2% at the end of 2020.
Continued mortgage growth was the main driver of the balance sheet momentum. In total, mortgage lending was up £2.7 billion in the quarter with total mortgage lending £15.3 billion higher than at the end of 2020. To support our ambition to become the preferred financial partner for our customers, we have delivered net open mortgage book growth of more than £15 billion in the first nine months.
We are also starting to see growth in credit card balances, which are up £0.2 billion in the quarter as spending on travel starts to recover. We expect this modest growth to continue in coming quarters. Meanwhile we continue to see strong deposit inflows to our trusted brands. Retail deposit balances are up £4 billion with total deposits now more than £28 billion higher so far in 2021, and an increase of £67 billion since the end of 2019.
Our strategy through Q3
Our strategy in 2021 of Helping Britain Recover remains unchanged. Our solid financial performance, strong progress against our strategic priorities and continued business momentum position us well moving forward.
Our strategy has proved to be incredibly resilient, and this has been vital to supporting our customers and communities during these challenging times.
The Group has strong foundations, with significant balance sheet and capital strength. This puts us in a good position to take advantage of the exciting and significant opportunities to grow through disciplined investment; further developing our services to customers and deepening customer relationships across all our businesses.
The pandemic has driven a significant shift in how many of our customers choose to bank and transact, and we continue to examine how we can support them through further development of our digital technologies. However, our commitment to efficiency remains unchanged, and I believe there are significant opportunities to invest in improving our processes through enhanced technology.
At our full year results in February, the Group’s new Chief Executive Charlie Nunn will give a update on strategy, and while our strategy may evolve we can be certain that our purpose of Helping Britain Prosper will still be at the heart of everything we do.
William joined the Board in August 2019, when he was appointed Chief Financial Officer.
William has worked in financial services for over 25 years, and previously held a number of senior roles at Morgan Stanley, including Co-Head of the Global Financial Institutions Group and Head of EMEA Financial Institutions Group. Before joining Morgan Stanley, William worked for JP Morgan, again in the Financial Institutions Group.