Lloyds hit as banks compete for mortgage customers

Lloyds Banking Group’s profits plunged by 28% in early 2024 as competition grew for mortgages and deposits.

The bank posted pre-tax profits of £1.6bn between January and March, down from £2.3bn last year.

Lloyds said its margins had been hit “mainly within UK mortgages” amid heightened competition between lenders to offer squeezed buyers better deals.

The UK’s biggest lender also made less from loans to businesses, but more from credit cards and car finance.

The group, which owns Halifax and Bank of Scotland, said in the three months to the end of March that its net interest income,…