Lloyds Banking Group has posted a statutory pre-tax profit of £2.04bn for the first quarter of 2013, up from £280m in the same period in 2012.
LBG says its sale of St James’s Place shares contributed towards an increase in underlying income of 3 per cent to £4.9bn, up from £4.7bn in 2012.
Lloyds sold down 20 per cent of SJP in March in a move which raised £394m. Lloyds continues to hold a 37 per cent stake in SJP.
The bank reduced impairment costs by 40 per cent in Q1 to £1bn, compared to £1.66bn in Q1 2012.
Lloyds chief executive Antonio Horta-Osorio says: “The increase in profits was driven by higher income, which includes the gain of £394m relating to the sale of shares in St. James’s Place. Margin increased, and costs and impairments continued to fall rapidly, with this progress underpinned by a further strengthening of our balance sheet.”
Last week, The Co-operative Group backed out of a deal to buy around 630 UK branches of Lloyds, blaming the poor growth outlook and increasing regulatory requirements.