Lloyds bank has reported a pre-tax profit of £1.9bn on net income of £3.7bn in the first three months of 2021. City analysts had expected Lloyds to turn a profit of £1.1bn on net income £3.5bn.
The outperformance was driven by a boom in mortgage lending. Lloyds lent net £6bn against homes in the quarter, including £4bn handed to first time buyers. Mortgage completions were at the highest level since 2008.
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Group chief executive António Horta-Osório will step down by the end of the year after spending a decade at the helm.
As part of the shake-up, Lloyds has appointed industry veteran Robin Budenberg as new chairman.
Delivering his last set of results in charge, Horta-Osorio said: “We have made a strong start to the year with the quarterly results and on delivering Strategic Review 2021.”
Shares in Lloyds Bank surged to a one-year high on Wednesday after it beat forecasts for quarterly performance thanks to a booming UK property market.
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By GlobalDataUncertain outlook
Lloyds upgraded some forecasts in light of its strong performance, including projections for net interest margin, cost reductions, and return on equity.
However, Horta-Osorio said: “Whilst we are seeing positive signs, notably the progress of the vaccine roll-out and the emergence from lockdown restrictions, the outlook remains uncertain.
“The group remains absolutely focused on supporting its customers and Helping Britain Recover from the financial effects of the pandemic.”
The bank set aside another £323m to cover potential loan losses but released some of the reserves it had previously set aside. Lloyds was expected to take a £357m charge in the quarter.
Lloyds said it would continue to accrue dividends with an intention to resume them later this year.
Departing CEO Horta-Osório joined Lloyds in 2011, having been chief executive of Spanish-owned lender Santander UK.
Since then, he has overseen three strategic plans as the bank emerged from the global financial crisis and the UK government unwound its £21bn bailout stake in the lender.
Lloyds returned fully to private hands in 2017.
