The lender set aside £177m to help buffer against bad loans, pushing first quarter pre-tax profits for 2022 down to £1.6bn from £1.9bn in the same period a year earlier.

However, the group said its loan portfolio is “well-positioned” reflecting a prudent approach to credit risk.

Mortgage lending in the open book grew by £1.7bn in the quarter, driving overall loans and advances to customers up £3.2bn to £451.8bn.

The lender’s net interest margin benefitted from the UK bank rate increases as well as deposit growth which helped offset headwinds from mortgage book growth and pricing. This rose to 2.68 per cent from 2.49 per cent annually.

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Charlie Nunn, group chief executive, said: “Whilst we are seeing continued recovery from the coronavirus pandemic, the outlook for the UK economy remains uncertain, particularly with regards to the persistency and impact of higher inflation.

“We are proactively contacting customers where we feel they may need assistance and will continue to help with financial health checks and other means of support. We encourage customers, where affected, to get advice early and talk to us.”

As a base case, the bank has forecast that house price growth will be flat next year and in 2024.