Lloyds Banking Group experienced a significant decline in its profits in the first quarter of the year, new figures have revealed.
According to data released by the financier this morning (1 May), it saw it's pre-tax profits slip by nine per cent to £288 million ($467 million) during the opening three-month period of 2012.
This represents a fall of nine per cent in comparison to the corresponding timeframe last year - and a statement from Lloyds issued along with its results indicated the figures are reflective of the "subdued UK economic environment".
Furthermore, the bank has also set aside an additional £375 million to cover payment protection insurance (PPI) compensation awards due to the "increase in the volume of complaints" it has received recently.
This means the lender has now earmarked a total of £3.8 billion for PPI damages claims.
Recently, it emerged that new banking group NBNK had entered negotiations with Lloyds to purchase the 632 branches it has been ordered to sell by the European Union.
By Asim Shah