Lloyds Banking Group has reported a 28 percent decline in pre-tax profits for the first quarter of 2024, with profits dropping to £1.6 billion. The decrease is largely attributed to increased competition in the mortgage market and rising costs.
Despite a 22 percent increase in revenues to £11.3 billion, Lloyds’ profits were affected by several factors. Lower mortgage rates have reduced the bank’s margins, while a new Bank of England levy on lenders has added to its expenses. Additionally, a £100 million increase in severance pay related to redundancies has further impacted profits.
However, Lloyds Chief Financial Officer William Chalmers expressed optimism, stating that the pressure on margins is expected to ease in the coming months. He anticipates lower competition for deposits and refinancing on lower rates in the second half of the year.
Lloyds has also revised its house price forecast for 2024, expecting a 1.5 percent growth instead of the previously predicted 2.2 percent decline. For 2025, the bank is now projecting a 0.8 percent growth in house prices, up from its earlier estimate of 0.5 percent.
Meanwhile, financial technology firm Revolut plans to hire 1,500 new employees this year as part of its expansion strategy. The company has already added 2,000 new staff in the first quarter of 2024, bringing its total headcount to 10,000. Most of the new jobs will be in sales, customer support, and financial crime teams.
