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Lloyds doubles profits defying ‘challenging’ financial conditions

Written by: Samantha Partington
Lloyds Banking Group doubled its profits in the first three months of the year to £1.3bn from £654m in Q1 2016, amid a ‘challenging operating environment’.

Overall loans and advances to customers fell by 1% year-on-year in quarter one, from £450bn to £445bn while customer deposits rose slightly from £413bn to £415bn.

Group chief executive António Horta-Osório, said: “These results continue to demonstrate the strength of our customer focused, simple and low-risk business model and our ability to respond to a challenging operating environment.”

The bank made further provisions of £350m for customers who were mis-sold payment protection insurance, following the release of the Financial Conduct Authority’s (FCA) 29 August 2019 complaint deadline and a campaign to promote public awareness.

In complaint’s data released by the FCA yesterday, Black Horse Finance, part of Lloyds Banking Group, topped home finance complaints, with 1115.9 complaints per 1,000 outstanding balances. However, this figure is understood to include complaints on accounts no longer owned by LBG, artificially inflating the figure.

The bank also set aside £100m to compensate the victims of the HBOS Reading scandal which saw struggling small business owners conned into taking out expensive loans to save their livelihoods, while fraudsters spent the fees on lavish lifestyles.

Horta-Osório said the bank was determined that the victims of HBOS Reading were ‘fairly, swiftly and appropriately compensated’.

An additional £100m provision was set aside for retail banking conduct matters.

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