Lloyds Banking Group’s Profit Declines Nearly 7% in First Quarter

Lloyds Banking Group announced a decrease of almost 7% in its first-quarter earnings on Thursday, attributing the decline to increased operational costs. The group has also allocated 100 million pounds ($132.9 million) to address tariff-related repercussions.

Britain’s largest mortgage provider reported a pre-tax profit of 1.52 billion pounds for the three-month period concluding on March 31. This figure is lower than the 1.63 billion pounds recorded in the same period last year, and slightly below the company-compiled consensus estimate of 1.53 billion pounds.

Lloyds stated that the ‘initial non-UK tariffs announced in early April, alongside the immediate market reaction, were more substantial than anticipated.’

The broader economic environment faces uncertainty due to tariffs imposed by U.S. President Donald Trump, creating concerns about the global economic outlook and raising fears of potential recession.

This week, HSBC and UBS both highlighted weakened loan demand and potential credit losses stemming from the consequences of Trump’s global trade policies. Major U.S. banks had previously cautioned about impending economic volatility last month.