Lloyds grants £5.7 billion of new mortgage in Q1
Lloyds Banking Group has completed £5.7 billion of new mortgage business in the first quarter of 2012 with £1.3 billion (23 per cent) of this going to first-time buyers.
In its interim statements LBG said: “The group continues to develop its proposition for first-time buyers, including the launch of support for those customers affected by the end of the stamp duty exemption, the launch of our NewBuy mortgage proposition in full support of the UK government-led initiative, and further expansion of the Local Lend a Hand mortgage offering.
The bank has grown customer deposits by 2 per cent since the last quarter of 2011 and 6 per cent since the first quarter of last year.
On a statutory basis, profit before tax at Lloyds Banking Group was down 9 per cent at £288 million in the first quarter of 2012, compared to a £316 million in the fourth quarter of 2011.
This compares to a loss before tax of £3,470 million in the first quarter of 2011. This loss was primarily due to a provision of £3,200 million for contact and redress for customers who have been mis-sold payment protection insurance.
Recently there has been an increase in the volume of PPI complaints being received so the group has taken an additional provision in the first quarter of 2012 of £375 million taking the total estimated cost to £3,575 million.
LBG confirmed it is still in talks with the Co-operative Group as the preferred buyer for Project Verde (the EU enforced sale of 632 branches) but there is no longer an exclusivity agreement. The group is open to discussions with other parties including renewed interest from NBNK.
The bank says it is also still looking at an alternative option of an Initial Public Offering (IPO), where Verde will be a standalone bank with separate supporting corporate functions, based on LBG systems and infrastructure.
Branch and online
More than 100 Lloyds TSB branches have been refurbished since November 2011 with new layout, and the group has been rolling out a new branch management strategy.
LBG has also enhanced the international payments capability to its internet banking platform and increased the functionality of the Lloyds TSB Money Manager service.