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

Lloyds Banking Group revealed a drop of nearly 7% in its first-quarter earnings on Thursday, impacted by rising expenses. The group has also allocated 100 million pounds ($132.9 million) to address tariff-related effects.

Britain’s leading mortgage provider declared a pre-tax profit of 1.52 billion pounds for the three-month duration concluding on March 31. This is in contrast to 1.63 billion pounds during the prior year, aligning closely with a company-compiled consensus estimate of 1.53 billion pounds.

“The initially declared non-UK tariffs during the early days of April, along with the immediate market reaction, exceeded anticipations,” Lloyds stated.

The broader economic environment has faced instability because of tariffs imposed by U.S. President Donald Trump, leading to uncertainty in the global perspective and raising apprehensions about potential recessions.

This week, HSBC and UBS highlighted weakening loan demand and escalating credit losses stemming from the consequences of Trump’s global trade actions. Major U.S. banks also cautioned last month regarding economic instability.