Lloyds Banking Group (LBG) has announced a rise in statutory profit before tax to £2bn ($3.1bn) in the first quarter of 2013 from £280m in the year ago quarter.
The results also showed a rise in the bank’s underlying profit from £497m in the first quarter of 2012 to £1.48bn for the three months to end March.
The group’s total underlying income rose by 3% to £4.9bn, including a £394m gain from its sale of shares in St James’s Place.
The bank’s successful quarter was boosted by no fresh provisions requiring to be made for payment protection insurance (PPI) mis-selling claims; PPI provisions have to date cost the bank more than £7bn.
António Horta-Osório, group chief executive, LBG said: "We made substantial progress again in the first quarter. Margin increased, and costs and impairments continued to fall rapidly, with this progress underpinned by a further strengthening of our balance sheet. We are delivering real benefits for customers, colleagues and shareholders by investing behind our simple, UK customer-focused retail and commercial banking model, and are now further ahead in our plan to transform the Group, as reflected in the enhanced guidance for costs and capital we are giving today."
The results come less than a week after the announcement that Lloyds TSB’s proposed sale of 632 branches to the Cooperative Bank had fallen through.