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High-street bank Lloyds reported a jump in first-quarter profit as bad debt provisions fell amid an ongoing economic recovery.
For the months ended 31 March 2021, pre-tax profit rose to £1.9 billion from £74 million a year earlier, while net income was down 7% to £3.7 billion.
The company reported a £459 million release of expected credit loss allowances resulting from improvements to the UK's economic outlook.
The CET1 ratio of 16.7% was 'significantly' ahead of the ongoing target of about 12.5%, the company said. expected credit loss provisions, given the improved economic outlook.
Following the 'solid' performance for the quarter, the company lifting its guidance for 2021, forecasting net interest margin to be in excess of 245 basis points and operating costs to reduce to about £7.5 billion.