---
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"
date: 2023-05-03
canonical: "https://www.share-talk.com/lloyds-bank-exceeded-expectations-with-its-profit-for-the-first-quarter/"
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"]
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format: "news"
language: "en-GB"
---

# Lloyds Bank exceeded expectations with its profit for the first quarter.

**Published:** May 3, 2023
**Author:** sharetalk
**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)

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**Lloyds Banking Group PLC (LSE: LLOY)** reported robust first-quarter results, surpassing expectations and recording a 46% increase in profit.

The 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.

The 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.

Operating costs rose 5% to £2.2bn, attributed to higher strategic investment, inflationary effects, and costs of new businesses.

Asset 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.

Lloyds 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.

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