Lloyds Banking Group has today reported a near 7% drop in first-quarter profit, hurt by higher costs and impairment charges, and said it had set aside £100m for tariff-related impact.
"Initial non-UK tariffs announced in the first few days of April and the immediate market response were larger than expected," Lloyds said in a statement.
Britain's biggest mortgage lender reported pre-tax profit of £1.52 billion for the three months ended March 31, compared with £1.63 billion a year earlier, and a company-compiled consensus estimate of £1.53 billion.
It recorded an impairment charge of £309m, which included £35m for "changes in economic outlook".
The broader economic landscape has been thrust into turmoil by US President Donald Trump's tariffs, clouding the global outlook and prompting recession fears.
HSBC and UBS this week pointed to degrading loan demand and further credit losses from the broader fallout of Trump's global trade war, while big US banks warned of economic turbulence last month.
Lloyds' risk-weighted assets increased by £5.5 billion to £230.1 billion at the end of March, which it said included a temporary £2.5 billion increase from hedging that it expected to reverse by the third quarter.
Still, the bank backed its financial forecast for 2025 and 2026, and said it saw strong lending growth in the first quarter.
Lloyds did not record further charges to cover the costs of a potential customer redress scheme linked to the sector-wide review into the potential mis-selling of car loans.
It has so far set aside £1.15 billion for redresses.
