Lloyds Banking Group PLC ADR (NYSE:LYG) (LON:LLOY) reported a nearly 7% decline in first-quarter profit as rising costs weighed on performance and the bank braced for the financial impact of new trade measures.
The bank’s shares fell more than 2% in London trading.
Pre-tax profit for the three months to March 31 came in at £1.52 billion, down from £1.63 billion a year earlier and just below the £1.53 billion expected by analysts, according to company-compiled estimates.
The lender set aside £100 million (around $133 million) in provisions related to tariffs, noting that “initial non-UK tariffs announced in the first few days of April and the immediate market response were larger than expected.”
Return on tangible equity stood at 12.6% for the quarter. Lloyds said this keeps it on track to reach around 13.5% for full-year 2025.
Despite the tariff hit and higher expenses, the company maintained confidence in its guidance for both 2025 and 2026.
Lloyds was scheduled to hold a presentation for investors and analysts at 9:30 a.m. U.K. time. RBC Capital Markets analysts noted that "the market will likely focus today on net interest margin (NIM) trajectory for the rest of the year."
