Lloyds Banking Group has posted a nine per cent fall in pre-tax profit for the first three months of the year from £316m to £288m.
The group’s interim management statement for the first quarter also reveals the bank has set aside an additional £375m to cover the cost of compensating customers who were missold payment protection insurance, taking total PPI provision to nearly £3.58bn.
A report in yesterday’s Evening Standard suggested Lloyds had received a multi-billion pound bid for Scottish Widows from Edmund Truell, founder of private equity firm Duke Street. A spokesman for Lloyds subsequently denied it had received any formal takeover approaches.
Lloyds’ interim management statement also reiterates plans to launch an enhanced annuities product and enter the IFA protection market through the Scottish Widows brand, following its exit from the offshore bond market announced in February.
Corporate pension sales have increased by 40 per cent in the first quarter of 2012 on a present value of new business premiums basis. Individual pension sales are up 12 per cent, which Lloyds says has been driven by sales of its retirement account product.
The bank completed £5.7bn of new mortgage business in the quarter, with £1.3bn advanced to first-time buyers.
Lloyds revealed last week it had ended exclusivity talks with the Co-operative Group over the forced sale of its 632 bank branches, required by the European Commission in return for being bailed out by the Government in 2008.
The bank says is making “good progress” on the branch disposal, but is also working on the alternative option of an initial public offering.