Lloyds Reports 28% Drop in Profits Amid Intense Mortgage Competition

Lloyds Banking Group experiences a significant profit decline in the first quarter of 2024, influenced by a competitive mortgage market and increased returns on savings.

Lloyds Banking Group's pre-tax profits fell to £1.6 billion from £2.3 billion in the same period last year, marking a 28% decrease.
The decline in profits was driven by a 10% drop in net interest income due to competitive pressures in both the mortgage and savings markets.
Despite the profit drop, Lloyds maintains a positive outlook, forecasting a 1.5% rise in house prices and steady economic growth for 2024.
The bank has set aside £57 million for bad debt provisions, significantly lower than the previous year's £243 million, reflecting an improved economic forecast.
Lloyds faces ongoing scrutiny from the Financial Conduct Authority regarding potential overcharges in its car loan division.