Lloyds Banking Group profit hit by soaring costs – Daily Business

Profits at Lloyds Banking Group dipped in the first three months of the year as operating expenses and impairment charges rose.

The group, which includes Bank of Scotland, Scottish Widows and Halifax, came in with figures that met analysts’ expectations of a 7% drop in pre-tax profit to £1.5bn against the first quarter of 2024.

It blamed a 6% rise in costs to £2.6bn while also announcing an impairment charge of £309m, compared to the £57m reserved in the first quarter of 2024.

This included a £100m central adjustment to address the downside risks of President Donald Trump’s tariff policies.

It has reserved £1.2bn in potential provisions resulting from the motor finance inquiry.

Charlie Nunn, Lloyds’ chief executive, said: “We continue to make good progress on our strategic transformation and deliver innovative ways for our customers to manage their financial needs and achieve their financial aspirations, in line with our purpose of Helping Britain Prosper.

“This supports our ambition of higher, more sustainable returns that will underpin delivery for all of our stakeholders.

He added: “Our differentiated business model stands out in the context of recent market volatility and economic uncertainty and helps support UK households and businesses as they further strengthen their financial resilience.