Lloyds Banking Group announced today a 28 per cent decline in its pre-tax profits to £1.6bn for the first quarter. Its quarterly revenues also dipped to £4.2bn, landing just below market expectations of £4.3bn.
The bank said its net interest margin, the difference between the interest it charges on loans and the rate it pays on deposits, fell to 2.95 per cent from 2.98 per cent in the previous quarter. Additionally, it cited higher operating costs, including a new Bank of England levy on lenders and £100mn in costs to cover employee severance packages in a recent round of layoffs.
