Lloyds Banking Group has reported pre-tax profits of £2bn for the first quarter, well ahead of analysts' estimates, after the lender made a number of cost savings and profited from selling 20% of its stake in St. James's Place (SJP).
The bank said the £394m gain relating to the sale of SJP shares was one the reasons behind the group's improved statutory profits. Pre-tax profit for the first quarter beat analysts' estimates of £864m, and compared to the £280m posted a year ago. Group underlying profit was £1.5bn for the period, compared to £497m for Q1 2012. The bank reported loan impairments fell 40% from £1.7bn to £1bn from the previous year. This is the lowest quarterly figure for impairments the bank has posted since 2008. The bank's return to profitability has been hindered by the amount it had to set as...
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