Lloyds Falls by 28% in First‑Quarter Profits
With mortgage competition heating up, Lloyds reported a seismic 28 % dip in its first‑quarter earnings. Pre‑tax profit slid from £2.3 bn last year to £1.6 bn this quarter. Analysts had penciled in £1.7 bn, so the bank ended a touch short of expectations.
Key Numbers at a Glance
- Pre‑tax profit: £1.6 bn (down from £2.3 bn)
- Net interest margin: 2.95 % (down from 2.98 %)
- Net interest income: £3.2 bn (a 10 % drop)
CEO’s Take
Charlie Nunn, the 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.”
He added, “Our performance gives us further confidence around our strategic ambitions for 2024 and 2026. Guided by our purpose, we are supporting customers and following through on our strategic outcomes. This underpins our ambition of higher, more sustainable returns that will benefit all stakeholders as Britain continues to prosper.”
Market Perspective
Richard Hunter of Interactive Investor noted, “This update has done little to rattle the stock’s supporters. The price did dip a bit early on, but as a long‑term play focused on shareholder returns and an attractive, historically low valuation, the consensus remains that Lloyds is a buy.”
Bottom Line
Despite the slump, the bank is keeping its frugal cost regime, maintaining asset quality, and staying committed to its growth roadmap. The drop is a clear sign of how fierce the mortgage market has become, but Lloyds is positioned to weather the storm while continuing to deliver solid returns for its investors.
