Lloyds Banking Q1 Pre-tax Profit Plunges - Quick Facts

(RTTNews) - Lloyds Banking Group plc (LLOY.L, LYG) reported Thursday that its first-quarter profit before tax plunged 95 percent to 74 million pounds from 1.60 billion pounds in the year-ago period, impacted by a significantly increased impairment charge of 1.43 billion pounds due to the revised economic outlook.

Profit after tax fell 60 percent to 480 million pounds from 1.2 billion pounds a year ago. Earnings per share were 0.5 pence, compared to 1.5 pence a year ago.

Underlying profit fell 74 percent to 558 million pounds from 2.17 billion pounds last year.

Net income for the quarter declined 11 percent to 3.95 billion pounds from 4.42 billion pounds last year, with both lower net interest income and lower other income.

Net interest income decreased 4 percent to 2.95 billion pounds from 3.08 billion pounds a year ago, with reductions in both the banking net interest margin and average interest-earning banking assets.

Looking ahead, Lloyds Banking said that due to the significant change in the operating environment and economic expectations, the Group's previous guidance is no longer appropriate.

The company noted that the impact of lower rates, lower levels of activity and higher impairment on the Group's business will continue into the second quarter, but remained difficult to quantify given the significant uncertainty. The Group will update the market once there is greater clarity.