28th Apr 2016 06:18
LONDON (Alliance News) - Lloyds Banking Group PLC on Thursday said its first-quarter pretax profit fell by almost half, hit by market volatility and the cost of redeeming expensive debt with the aim of boosting interest margins.
Pretax profit fell to GBP654 million in the three months ended March 31, Lloyds said in a statement, from GBP1.21 billion the corresponding quarter a year earlier.
Underlying profit, which excludes costs related to redeeming the so-called enhanced capital notes and market volatility, fell by 5.7% to GBP2.05 billion.
Redeeming the enhanced capital notes costs the bank GBP790 million in the quarter, while market volatility and asset sales cost GBP203 million.
"In the first three months of this year, we have continued to make good progress, delivering a robust financial performance and maintaining our strong balance sheet. These results demonstrate the strength of our differentiated, simple, low risk business model and reflect our ability to actively respond to the challenging operating environment," Chief Executive Antonio Horta-Osorio said in a statement.
By Samuel Agini; [email protected]; @samuelagini
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