Lloyds slashes UK economic outlook amid inflation concerns as profits fall
Lloyds Banking Group warned of an “uncertain” wider UK economy due to soaring inflation as it posted a 14% drop in quarterly profits.
The credit giant reported pre-tax profits of £1.6bn for the first three months of 2022, down from £1.9bn a year earlier, although the fall was not as severe that we feared.
It recorded an impairment charge of £177million as it warned the cost of living crisis could affect borrowers’ disposable income, while reducing its outlook for the UK economy as the war in Ukraine worsens inflationary pressures.
But it saw its costs rise to a lower-than-expected £2.15bn from £2.11bn a year earlier and improved its outlook for key profit metrics, including its profit margin. net interest, thanks to higher interest rates.
Chief Executive Charlie Nunn said: “While we are seeing a continued recovery from the coronavirus pandemic, the outlook for the UK economy remains uncertain, particularly in relation to the persistence and impact of higher inflation. high.
“We are proactively reaching out to customers when we think they might need help and will continue to help them with financial health checks and other means of support.
“We encourage customers, when concerned, to get advice early and talk to us.”