London (awp / afp) – British bank Lloyds announced on Wednesday a net profit down 16% in the first quarter, reflecting a charge for asset impairment linked in particular to inflation, but this is less heavy than expected and its revenues are on the rise.
Net profit group share for the period stood at 1.07 billion pounds (1.30 billion Swiss francs), against 1.28 billion a year earlier. Net income meanwhile rose 12% to 4.1 billion pounds, the bank said in a statement.
The bank announced a charge for impairment of assets of 177 million pounds, less heavy than expected by investors.
But it compares with a loan of 360 million pounds a year earlier linked to reversals of provisions made possible at the time by a lesser than expected impact of the pandemic on the economy.
“While we are seeing the recovery from the coronavirus pandemic continue, the outlook for the UK economy remains uncertain, in particular regarding the persistence and impact of higher inflation,” says Charlie Nunn , the general manager, quoted in the press release.
Lloyds is particularly dependent on the evolution of the British economy since it is above all a retail bank, offering services to individuals and businesses.
However, inflation is soaring to record levels in the country: the rise in prices accelerated further in March, to 7% over one year, at the origin of a crisis in the cost of living particularly affecting the most vulnerable households. modest.
The bank notes that the strong revenue growth is, however, “supported by the continued recovery in customer activity and changes in interest rates”.
The Bank of England has already raised its interest rates three times in a few months in an attempt to calm inflation, “which benefits the (banking) sector as a whole”, explains Richard Hunter, analyst at Interactive Investor .
Despite the impact of inflation, the group is thus revising upwards its net interest margin forecasts for the year.
“Against the backdrop of an unstable UK economy and an increasingly strained consumer, Lloyds had an overall impressive start to the year,” continued Richard Hunter.
But “although the bank has no exposure to Russia, it is exposed to companies that are affected by rising energy and commodity prices and is therefore monitoring the situation closely,” he said. -he adds.
afp/jh