Profits at Lloyds Banking Group have fallen as the high street bank set aside more money than expected to deal with possible bad debts arising from Donald Trump’s trade war.
The group, whose brands include Lloyds Bank, Halifax and Bank of Scotland, reported a 4 per cent increase in net income to £4.4 billion compared with the same period last year.
However, its pre-tax profit slipped by 7 per cent to £1.5 billion, mainly due to higher costs and impairment charges.
Lloyds has now set aside £309 million on its balance sheet to account for possible bad debts, compared with previous guidance of £274 million.
The higher figure included a £35 million net charge to prepare for the possible impact on the economic outlook from the US president’s tariffs.
Chief financial officer at the bank, William Chalmers, said its direct exposure to the US was “very limited” but that it remained “vigilant” for any potential impact within the UK.
The bank also reported its busiest day ever for mortgage lending on Thursday March 27, as thousands of first-time buyers rushed to beat stamp duty in England and Northern Ireland rising back to its pre-2022 levels in April.
English (US) ·