Lloyds profits flat as mortgage balances fall £4.9bn

In its interim results, Lloyds revealed a reduction of £4.9bn in mortgage balances.

It has also set aside an additional charge of £100m for PPI, which it says reflected increased costs from higher gross complaint volumes.

Group chief executive, António Horta-Osório, said: "While Brexit uncertainty persists, and continued uncertainty could further impact the economy, I remain confident that our unique business model, and in particular our market leading efficiency and targeted investment, will continue to deliver superior performance and returns for our customers and shareholders."

Graham Spooner, investment research analyst at The Share Centre, commented: “The Q1 update from Lloyds Bank this morning reports a pre-tax profit slightly below expectations at £1.6bn. There were a number of one-offs included in the numbers such as costs related to exiting from the investment management contract with Standard Life. Revenue growth also disappointed but was probably to be expected in view of the current trading environment in the UK and the net interest margin although lower was as expected at 2.91%.

“The group reiterated on its financial targets for the year. The CEO who remains confident on the group’s business model, highlighted continued progress with its strategic plan, but as usual there was the concern over Brexit uncertainty which could impact the economy further."