Lloyds did not reveal a figure in relation to its profits, but said that it is now confident of a better financial performance than it previously predicted.
Analysts now expect the group to make a full profit for this year, a change from the previous assumption that it would post a small loss – and good news for taxpayers.
The 43% state-owned bank said that while lending balances have remained flat, its customer deposits have grown ‘robustly’ by over £5bn in the first quarter. Impairments in its secured and unsecured lending portfolio have also dropped.
Jonathan Cornell, head of communications for First Action Finance, said: “It’s obviously good news that Lloyds is back in the black, because it increases the chances that taxpayers are going to get their money back.
“However, the mortgage industry would much rather it was less profitable, more active in lending and more competitive with its products.”
The group has also issued its first securitisation backed by mortgages from Cheltenham & Gloucester and Lloyds TSB for three years. The deal of residential mortgage-backed securities has been valued at around £3.4bn.
