Britain’s Lloyds quarterly profit drops 7%, provisions $133 million for tariffs

Lloyds Banking Group reported a near 7% drop in first-quarter profit on Thursday, hurt by higher costs, and said it had set aside 100 million pounds ($132.9 million) for tariff-related impact.

Britain’s biggest mortgage lender reported pre-tax profit of 1.52 billion pounds for the three months ended March 31, compared with 1.63 billion pounds a year earlier, and a company-compiled consensus estimate of 1.53 billion pounds.

“Initial non-UK tariffs announced in the first few days of April and the immediate market response were larger than expected,” Lloyds said in a statement.

The broader economic landscape has been thrust into turmoil by U.S. President Donald Trump’s tariffs, clouding the global outlook and prompting recession fears.

HSBC and UBS this week pointed to degrading loan demand and further credit losses from the fallout of Trump’s global trade war, while big U.S. banks had also warned of economic turbulence last month.