{"id":107829,"title":"Lloyds Bank exceeded expectations with its profit for the first quarter.","publisher":"Share Talk","author":"sharetalk","published":"2023-05-03T06:49:13+00:00","modified":"2023-05-03T06:49:13+00:00","canonical_url":"https://www.share-talk.com/lloyds-bank-exceeded-expectations-with-its-profit-for-the-first-quarter/","markdown_url":"https://www.share-talk.com/lloyds-bank-exceeded-expectations-with-its-profit-for-the-first-quarter.md","json_url":"https://www.share-talk.com/lloyds-bank-exceeded-expectations-with-its-profit-for-the-first-quarter.json","category":"B2B","categories":["B2B","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["BANK","banking","Barclays","bonuses","EU","Goldman","HSBC","investment","Lloyds","Lloyds Banking Group","London","NatWest","Profits","Share Talk","sia","UBS","UK"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1","format":"news","language":"en-GB","content":"**Lloyds Banking Group PLC (LSE: LLOY)** reported robust first-quarter results, surpassing expectations and recording a 46% increase in profit.\n\nThe bank attributed this to a boost in net income due to a higher interest environment. For the three months ending March 31, net income rose 15% to £4.7bn, while pre-tax profit jumped to £2.26bn, beating analyst forecasts of £1.95bn.\n\nThe underlying net interest income grew 20% to £3.54bn, with the net interest margin remaining unchanged from the fourth quarter at 3.22%, but 54 basis points higher than Q1 2022.\n\nOperating costs rose 5% to £2.2bn, attributed to higher strategic investment, inflationary effects, and costs of new businesses.\n\nAsset quality remained resilient with an underlying impairment charge of £0.2bn and an asset quality ratio of 22 basis points. While loans and advances to customers fell, commercial banking deposits increased, and the CET1 ratio of 14.1% remained above the 12.5% ongoing target.\n\nLloyds Banking Group PLC expects continued growth, with banking net interest margin expected to be above 305 basis points, operating costs around £9.1bn, asset quality ratio around 30 basis points, a return on tangible equity around 13%, and capital generation at around 175 basis points."}