Britain's largest retail bank also booked a fresh 1 billion pound charge to compensate customers mis-sold loan insurance after the Financial Conduct Authority pushed back the claims deadline by a year to mid-2019.
"The outlook for the UK economy remains uncertain, however the strength of the recovery in recent years means the UK is well positioned," the bank said in a statement.
Lloyds also reported a 740 million pound deficit in its pension fund, which has been hit by falling bond yields in recent months.
Rescued in a 20.5 billion pound taxpayer bail-out during the financial crisis, Lloyds is the first major British bank to report results that fully capture the period after the referendum results.
Chief Executive Officer Antonio Horta-Osório is searching for ways to prop up Lloyds' dividend and profits against a more testing economic enviornment and the effects of lower-for-longer interest rates caused by the vote to leave the EU.
Since June's referendum, shares in Lloyds <LLOY.L> have fallen by about a quarter, partly reflecting their heavy exposure to any downturn in the British economy.
Lloyds said total loans and advances to customers fell 1 billion pounds to 452 billion pounds compared to three months earlier.