Lloyds Earnings: Decent Quarter as Lloyds Sets Aside GBP 100 Million for Tariff Impact Risks

Lloyds reported underlying profits of GBP 1.53 billion for the first quarter of 2025, down 13% versus the same period a year ago. Higher loan losses this year, driven by a GBP 100 million overlay charge to cover potential tariff-induced risks, drove the divergence in performance versus last year. However, loan losses of 27 basis points was decent. Last year, the bank also booked reversals in its commercial banking unit, which made for a difficult comparative base. Lloyds continues to guide for a 25-basis-point loan loss ratio for the year.