Lloyds reports 28% fall in first quarter profits

Lloyds has reported a 28% fall in their first quarter profits due to stronger opposition in the mortgage market.

The bank announced for the first quarter a pre-tax profit of £1.6 billion compared with £2.3 billion the year before and came in just below forecasts which analysts were expecting a profit of £1.7 billion.

At the end of the fourth quarter net interest margin edged down to 2.95% from 2.98% compared to 3.22% the previous year and underlying net interest income dropped 10% to £3.2 billion.

Charlie Nunn, group chief executive, said, “The group is continuing to deliver in line with expectations in the first quarter of 2024, with solid net income, cost discipline and strong asset quality.

“Our performance provides us with further confidence around our strategic ambitions and 2024 and 2026 guidance.

Guided by our purpose, we are continuing to support customers and successfully execute against our strategic outcomes, as highlighted in the third of our strategic seminars last month.

“This underpins our ambition of higher, more sustainable returns that will deliver for all of our stakeholders as we continue to help Britain prosper.”

Richard Hunter, head of markets at Interactive Investor, said, “This update has done little to excite supporters of the stock, with some weakness being experienced in the price in early trade, although as a longer-term play based on shareholder returns, improving prospects and a historically undemanding valuation, the market consensus of the shares as a buy is likely to remain intact.”