Lloyds Banking Group plc reports increased profits and returns in 'strong' start to 2018

Lloyds Banking Group plc has reported a “strong financial performance” with an increase in profits for the three months ending 31st March, 2018.

For Q1, the banking group saw statutory profit before tax rise by 23% to £1.6bn, while profit after tax was up 29% at £1.14bn.

These figures were both driven by a 6% increase in underlying profit to £2bn.

In addition, Lloyds banking group reported a 4% rise in net income to £4.3bn, with net interest margin increasing to 2.93%.

The group chief executive’s statement read: “In the first three months of 2018 we have again delivered strong financial performance with increased profits and returns, a significantly reduced gap between underlying and statutory profit and a strong increase in capital.

“These results continue to demonstrate the strength of our business model. In March, following our 2017 results and dividends announcement, we commenced our share buyback programme of up to £1bn.

“The UK economy continues to be resilient, benefiting from low unemployment and continued GDP growth. Asset quality remains strong with no deterioration seen across the portfolio. We expect the economy to continue to perform along these lines during 2018.

“In February we announced our ambitious strategy to transform the Group into a digitised, simple, low risk, customer focused UK financial services provider. We have made a strong start to 2018 and have begun implementing the strategic initiatives which will further digitise the Group, enhance customer propositions, maximise our capabilities as an integrated financial service provider and transform the way we work.”