Lloyds Banking Group Plc Bank increased its bad debt provision in the first quarter citing downside risks from the impact of US tariffs, while profits fell on the back of higher costs.
The UK lender lifted its impairment charge to £309m from £57m a year earlier. Net income rose 4% to £4.4bn while pre-tax profit fell 7% to £1.53bn as the bank reaffirmed full-year guidance.
Lloyds said it made a £100m central adjustment "to address downside risks to the base case related to the potential impact from US tariff policies announced at the start of April".
"Initial non-UK tariffs announced in the first few days of April and the immediate market response were larger than expected," the bank said on Thursday.
"These were becoming apparent around the balance sheet date and were determined to not be fully captured within the modelled divisional allowances. This is partially offset by benefits .. from small increases to house price and wage growth expectations."
Reporting by Frank Prenesti for Sharecast.com