Lloyds Bank Reports £2bn Profit

Lloyds Banking Group has reported a profit for the first three months of the year.

The bank recorded a statutory pre-tax profit of £2.04bn in the first quarter of 2013, an increase from £280m for the same period the year before.

The latest figures come after a deal to sell more than 630 of its branches to the Co-Op collapsed las week. It added that it still plans to continue with the branch sale by selling them as a stand-alone bank through a stock market listing.

Underlying profits for the first quarter, which strip out certain one-off costs and gains, were £1.5bn and exclude costs related to the planned branch sale, as well as money set aside for possible Payment Protection Insurance (PPI) payouts.

Group chief executive Antonio Horta-Osorio said the bank, which is 39% taxpayer-owned, had made "substantial progress".

He added that profits had been driven by increased margins and a continued rapid fall in costs and impairments.

The group said costs fell 6% in the first three months of the year, adding that it expected annual costs to fall to just over £9bn for 2014.


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