Lloyds Banking Group has reported an 11 per cent fall in pre-tax profit for the first quarter of the year, after making a £660m loss on the sale of TSB.
The bank’s Q1 results, published today, show it made a £1.2bn profit in the first three months of the year, down from £1.4bn in the equivalent period in 2014.
Lloyds incurred a £660m charge relating to the sale of challenger bank TSB, after it agreed to pay £450m for TSB’s IT migration costs.
Lloyds was forced by the European Commission to sell or spin-off TSB.
TSB floated on the stock market in 2014 and a takeover bid by Spanish bank Banco de Sabadell was announced in March.
Lloyds’ results show its underlying profit increased by 21 per cent year-on-year to £2.2bn.
Group chief executive Antonio Horta-Osorio says: ‘We have made a strong start to the next phase of our strategy to become the best bank for customers and shareholders, as we continue to support and benefit from UK economic growth.
“I am pleased with the continued improvement in financial strength and performance in the first quarter and expect our plan to deliver sustainable growth and improved returns.
“It also remains our intention to pay an interim and a final dividend for 2015.”