Lloyds Banking Group has reported a 95% fall in first quarter profit as it counts the cost of the coronavirus to the economy.
Profit of £74m for the January-March period were down from £1.6bn in the same period a year ago, as the UK-focused lender set aside £1.43bn to cover the expected slump caused by the coronavirus pandemic.
The group, which owns Halifax and Bank of Scotland as well as Lloyds Bank, sees the economy shrinking by as much as 7.8% this year under a “severe downside” scenario.
Lloyds chief executive Antonio Horta-Osorio said: “The economic outlook is clearly challenging and uncertain with the longer-term outcome dependent on the severity and length of the coronavirus pandemic and the mitigating impact of government and other measures in the UK and across the world.”
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