LLOY Lloyds Banking Group Plc

   By Pietro Lombardi 
 

Lloyds Banking Group PLC said Wednesday that its first-quarter pretax profit rose sharply and beat expectations helped by an impairments credit, and the company improved its outlook for the year.

The U.K. bank posted a quarterly pretax profit of 1.90 billion pounds ($2.64 billion). This compares with GBP74 million a year earlier and analysts' expectations of GBP1.05 billion.

The bank posted a net credit of GBP323 million related to impairments. This compares with a GBP1.43 billion impairment charge a year earlier and analysts expectations of a GBP357 million charge.

"The net credit in the quarter was driven by continued strong asset quality," it said.

Statutory after-tax profit rose to GBP1.40 billion from GBP480 million, it said.

The bank improved its outlook for the year, including net interest margin now seen above of 245 basis points and statutory return on tangible equity now forecast to be between 8% and 10%

"The long-run transformation of the Group has positioned the business well to address the challenges of the pandemic," Chief Executive Antonio Horta-Osorio said. This is his last set of results, as he is leaving to join Swiss bank Credit Suisse Group AG as chairman.

"We have made a strong start to the year with the quarterly results and on delivering Strategic Review 2021."

The bank plans to resume progressive and sustainable ordinary dividend policy, it said.

Write to Pietro Lombardi at pietro.lombardi@wsj.com; @pietrolombard10

(END) Dow Jones Newswires

April 28, 2021 02:51 ET (06:51 GMT)

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