Lloyds takes £151m hit from Iran war as it forecasts rise in UK unemployment
Lloyds Banking Group has reported a £151 million financial impact due to the ongoing conflict in the Middle East, forecasting a rise in UK unemployment. The bank anticipates UK GDP growth of only 0.5% this year, lower than the IMF's prediction. Despite these challenges, Lloyds reported pre-tax profits of £2 billion in the first quarter, a significant increase from the previous year.
- ▪Lloyds expects UK unemployment to rise to 5.6% by the second half of the year.
- ▪The bank forecasts inflation to reach 3.9% by the end of the year, driven by rising energy prices.
- ▪Lloyds reported pre-tax profits of £2 billion in the first quarter, exceeding analyst expectations.
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Lloyds reported pre-tax profits of £2bn in the first quarter, an increase of a third over the same period last year. Photograph: Tom Nicholson/ReutersView image in fullscreenLloyds reported pre-tax profits of £2bn in the first quarter, an increase of a third over the same period last year. Photograph: Tom Nicholson/ReutersLloyds Banking GroupLloyds takes £151m hit from Iran war as it forecasts rise in UK unemploymentBank expects its base case for GDP growth to be 0.5% this year, lower than IMF’s 0.8% prediction for Britain Business live – latest updates Mark SweneyWed 29 Apr 2026 05.06 EDTLast modified on Wed 29 Apr 2026 21.31 EDTSharePrefer the Guardian on GoogleLloyds has said that the economic fallout from the Middle East conflict could cost it £151m amid rising unemployment and…
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