Lloyds Banking Group PLC has released its Q1 2024 Interim Management Statement, reporting a statutory profit before tax of 1,587 million, a 23% decrease from the same period in 2023. The decrease was attributed to lower net interest income and higher operating expenses, partially offset by a lower impairment charge. Total income for the first three months was 4,385 million, a 5% decrease from 2023, primarily due to lower net interest income in the quarter.
Net interest income of 3,127 million was down 12% from the same period in 2023, driven by a lower net interest income margin. Other income was 171 million higher at 1,258 million, driven by improved UK Motor Finance performance, including growth from the acquisition of Tusker. Total operating expenses of 2,728 million were 18% higher than the same period in 2023, including expected elevated severance charges taken early in the year and a new sector-wide Bank of England levy.
The Group recognized remediation costs of 20 million in the first three months, in relation to pre-existing programs. Impairment was a charge of 70 million, reflecting a larger credit from improvements to the Group's economic outlook in the first quarter compared to the prior year. The Group recognized a tax expense of 428 million in the period compared to 555 million in the first three months of 2023, driven by lower profit in the period.
Total assets were 632 million higher at 606,037 million at 31 March 2024 compared to 605,405 million at 31 December 2023. Financial assets at amortized cost were 5,396 million higher at 493,467 million compared to 488,071 million at 31 December 2023, with reverse repurchase agreements 6,849 million higher, offset by a reduction in loans and advances to customers of 1,046 million to 432,078 million.
Customer deposits stood at 440,021 million at the end of the first quarter, a decrease of 1,932 million. Retail deposits were up 1.3 billion in the quarter, with a combined increase of 0.9 billion across Retail savings and Wealth, driven by inflows to limited withdrawal and fixed products and a 0.4 billion increase in current account balances. Offsetting this reduction, amounts due to fellow Lloyds Banking Group undertakings increased 930 million, debt securities in issue increased 1,649 million.