Bank's 'strong performance'
Lloyds shrugs off PPI payments to lift profits
Lloyds Bank has announced a 23% increase in pre-tax profit to £1.6 billion in the first quarter, despite being forced to set aside more compensation for customers who were mis-sold payment protection insurance.
The bank, which owns Bank of Scotland and Halifax, announced a further £90m to deal with PPI, which has become by far the largest mis-selling scandal in British banking history.
Lloyds’ latest provision comes on top of more than £18bn it has already paid since 2011.
Chief executive António Horta-Osório said the bank had enjoyed a solid start to 2018, noting: “We have again delivered strong financial performance with increased profits and returns, a significantly reduced gap between underlying and statutory profit and a strong increase in capital,” he said.
“The UK economy continues to be resilient, benefiting from low unemployment and continued GDP growth. Asset quality remains strong with no deterioration seen across the portfolio. We expect the economy to continue to perform along these lines during 2018.”