Lloyds sees pre-tax profit drop almost a third

Lloyds Banking Group saw pre-tax profits fall 30% year-on-year in Q1.

Related topics:  Finance News
Amy Loddington
1st May 2014
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While pre-tax profit fell from £2bn to £1.4bn, the report showed Q1 2013’s profits were boosted by the £776m sale of gilts and the sale of part of its stake in St James’s Place. Underlying profit increased 22% from £1.5bn to £1.8bn over the period.

Publishing its first quarter interim management statement today, Lloyds Banking Group says it lent £9.8bn to mortgage borrowers in the first quarter. The group did not publish quarterly lending figures in Q1 2013 but lent £14.5bn in the first six months of last year.

Of the total lent in the first quarter, £2.6bn was to around 20,000 first-time buyers and £416m was through the Government’s Help to Buy scheme.

Lloyds made no further provision for PPI in Q1 and says £2.3bn of the £9.8bn total provision remains unused.

Group chief executive Antonio Horta-Osorio says:

“We made good progress in the first quarter benefiting from our simple, low risk, UK focused retail and commercial banking business model.

“We provided further support to the UK economic recovery while delivering better underlying profitability and improved returns for shareholders from a stronger balance sheet.”

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