Lloyds profit flat as it warns on Brexit impact Britain’s biggest mortgage lender reported a £4.9bn decline in its home loan book and took a fresh £100m hit over the PPI scandal.

A branch of Lloyds Bank is pictured on October 28, 2014 in London, England
Image: The owner of Lloyds Bank said the size of its loan book shrank
  • image/svg+xml Why you can trust Sky News Lloyds Banking Group has reported flat profits for the start of the year as it swallowed £565m in one-off costs and warned Brexit could take a further toll on the UK economy.Britain’s biggest mortgage lender said it made a pre-tax profit of £1.6bn for the first quarter, little changed on a year ago. The group, which owns Lloyds Bank as well as Halifax Bank of Scotland, said the size of its loan book shrank 1%, including a £4.9bn decline in overall home loans assets.
    Lloyds Banking Group's CEO Antonio Horta-Osorio
    Image: Chief executive Antonio Horta-Osorio warned Brexit uncertainty could have a further impact

    However, there were improvements for car finance and small business lending.Shares fell 2% in early trading and were 1.3% down by the close. Advertisement Chief executive Antonio Horta-Osorio said it was a “strong business performance”. He added: “While Brexit uncertainty persists, and continued uncertainty could further impact the economy, I remain confident that our unique business model… will continue to deliver superior performance and returns for our customers and shareholders.”

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    • CMA’s audit revolution hinges on Grant Thornton decision Lloyds said underlying profits were up 8% but it was hit by a series of one-off charges.These included £339m for “banking volatility and other items”, covering the estimated cost of exiting an investment management agreement with Standard Life.A dispute over the exit saw a tribunal ruling in March against the way the bank terminated the contract early – which analysts said could see Lloyds face a big compensation bill.Charges also included the latest sum to be added to Lloyds’s multi-billion pound total charge for compensating customers who were mis-sold payment protection insurance (PPI).It said the £100m provision reflected “higher gross complaint volumes” as it continues to handle 13,000 complaints a week, and takes the running total to £19.525bn.Lloyds said it also spent £126m on restructuring in the period.


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