Lloyds Banking Group PLC has released its Q1 2024 Interim Management Statement, reporting financial performance in line with expectations. The Group's statutory profit after tax was 1.2 billion, with net income down 9% and operating costs up 11%. The return on tangible equity was 13.3%, and the underlying net interest income was 3.2 billion, down 10%. The Group also reported strong capital generation of 40 basis points, with a CET1 ratio of 13.9%.
The Group's asset quality remained strong, with an underlying impairment charge of 57 million and an asset quality ratio of 6 basis points. Loans and advances to customers reduced to 448.5 billion, while customer deposits decreased by 2.2 billion. Lloyds Banking Group reaffirmed its 2024 guidance, expecting a banking net interest margin of greater than 290 basis points, operating costs of around 9.3 billion, and a return on tangible equity of approximately 13%.
During the quarter, the Group agreed to sell its in-force bulk annuity portfolio to Rothesay Life plc, allowing its Insurance, Pensions, and Investments division to focus on growing strategically important lines of business. The Group's strategic ambitions and 2024 and 2026 guidance remain on track, providing confidence in delivering higher, sustainable returns for stakeholders.