Lloyds faces profit crunch after mortgage market competition
manchestereveningnews.co.ukProfits at the UK's largest mortgage lender, Lloyds Banking Group, have fallen by over a quarter in recent months as interest rates peak and the competition intensifies in the mortgage and savings market.
However, despite the tough trading conditions, the bank maintains that its customers are "resilient" and has improved its predictions for certain sectors of the economy this year.
Lloyds reported a statutory pre-tax profit of £1.6 billion for the first quarter of the year, a decrease of 28 per cent from the £2.3 billion announced during the same period last year.
The figures were slightly below analysts' predictions of a quarterly profit of £1.7 billion. The banking group attributes part of the profit decline to reduced net interest income - the revenue from loans minus the cost of deposits - which fell by one-tenth to £3.2 billion.
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