Lloyds misses profit, partly blaming wealth business move
Britain’s biggest mortgage lender has also blamed the cost of compensating mis-sold insurance customers
London — Lloyds Banking, Britain’s biggest mortgage lender, blamed the cost of compensating mis-sold insurance customers and moving its wealth business for a quarterly profit that missed forecasts. The bank posted a pretax profit of £1.6bn for the first quarter. This is lower than a consensus of £1.88bn compiled by the bank, which said it was due to one-time items including a break fee for moving some wealth funds out of Standard Life Aberdeen after a British tribunal ruled against the bank in March. Shares in the bank fell as much as 3.1% in early London trading. Lloyds is looking to diversify its revenue streams, particularly in wealth and insurance, while its core loans and savings accounts tread water. In 2018, it awarded Schroders and BlackRock a mandate to oversee about £109bn, aiming “to create a market-leading wealth management proposition”. However, the company on Wednesday flagged break fees to move the funds, contributing to a £339m charge. “We are disappointed by the out...
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