Profits on the rise at Lloyds Banking Group

Lloyds Banking Group has cheered a 'resilient' UK economy as it notched up a hike in first-quarter profits, despite taking another £90 million hit from the payment protection insurance scandal.

Lloyds Banking Group owns Bank of Scotland. Picture: Louise Kerr

The Bank of Scotland owner reported a 6 per cent rise in underlying pre-tax profits to £2 billion for the three months to 31 March, while bottom-line profits surged 23 per cent to £1.6bn.

But it added a further £90m in costs for payment protection insurance (PPI) mis-selling claims, taking its total bill for the saga to an eye-watering £18.8bn.

Chief executive Antonio Horta-Osorio said: “We have made a strong start to 2018 and have begun implementing the strategic initiatives which will further digitise the group, enhance customer propositions, maximise our capabilities as an integrated financial service provider and transform the way we work.”

He added: “The UK economy continues to be resilient, benefiting from low unemployment and continued GDP growth.

“We expect the economy to continue to perform along these lines during 2018.”