Lloyds profit unchanged as charges offset rising income
Lloyds Banking Group's first-quarter profit was unchanged as market swings and other items offset rising income and lower costs at Britain's biggest retail bank.
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Pre-tax profit for the three months to the end of March was £1.6bn, the same as a year earlier. Net income rose 2% to £4.42bn and total costs fell 4% to £1.98bn.
Underlying profit rose 8% to £2.2bn, ahead of a consensus forecast of £2.05bn, and net profit rose 2% to £1.2bn..
The bank took a charge of £339m for market volatility and other items, up from £270m a year earlier. The figure included an unspecified charge for ending a £100bn investment management agreement with Standard Life Aberdeen. The provision for payment protection insurance claims rose to £100m from £90m.
Lloyds' chief executive António Horta-Osório said: "We have again delivered a strong business performance with continued strategic progress, increased statutory and underlying profit and strong financial returns.
"While Brexit uncertainty persists, and continued uncertainty could further impact the economy, I remain confident that our unique business model, and in particular our market leading efficiency and targeted investment, will continue to deliver superior performance and returns for our customers and shareholders."
Lloyds stuck to its financial targets despite uncertainty over Brexit and the economy. The bank is aiming to limit operating costs to less than £8bn in 2019, generate returns on tangible equity of 14% to 15% and reduce its cost: income ratio each year.