Lloyds Banking Group, the part-nationalised bank, has aside a further £375m for compensation to people mis-sold payment protection insurance as it a reported better-than-expected quarterly profits.
First-quarter statutory pre-tax profits came in at £288m, down from a £3.47bn loss in the same period last year and better than the £200m expected by the market.
Lloyds said the increased provision for PPI was in response to a rise on mis-selling complaints, which António Horta-Osório, the chief executive, said was partly down to bogus claims by claims management companies.
Stripping out one-off costs and asset sales, profits from combined business more that doubled to £628m in the three months to the end of March from £284m last year.
Total income, net of insurance claims, fell 5pc to £4.49bn. Most of the increase in profits was down to a 36pc fall in impairments to £1.66bn from £2.61bn.
The bank, which plans to cut its workforce by 15,000, also kept costs down, reducing them by 7pc to £2.56bn.The loan to deposit ratio dropped to 130pc from 148pc in the first quarter last year, reflecting the bank's push to pull in more savers.
Mr Horta-Osório said: "Although our results reflected the subdued UK economic environment, the actions we have taken to further reduce costs, strengthen the balance sheet and reduce risk, and the additional investment we have made in our core franchise, are mitigating these effects and will position us well for future growth."Core tier 1 capital ratio - a key indicator of the bank's ability to survive shocks - increased to 11pc.
telegraph.co.uk
Lloyds said the increased provision for PPI was in response to a rise on mis-selling complaints, which António Horta-Osório, the chief executive, said was partly down to bogus claims by claims management companies.
Stripping out one-off costs and asset sales, profits from combined business more that doubled to £628m in the three months to the end of March from £284m last year.
Total income, net of insurance claims, fell 5pc to £4.49bn. Most of the increase in profits was down to a 36pc fall in impairments to £1.66bn from £2.61bn.
The bank, which plans to cut its workforce by 15,000, also kept costs down, reducing them by 7pc to £2.56bn.The loan to deposit ratio dropped to 130pc from 148pc in the first quarter last year, reflecting the bank's push to pull in more savers.
Mr Horta-Osório said: "Although our results reflected the subdued UK economic environment, the actions we have taken to further reduce costs, strengthen the balance sheet and reduce risk, and the additional investment we have made in our core franchise, are mitigating these effects and will position us well for future growth."Core tier 1 capital ratio - a key indicator of the bank's ability to survive shocks - increased to 11pc.
telegraph.co.uk
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