Profits at the UK's largest mortgage lender, Lloyds Banking Group, have fallen by over a quarter in recent months as interest rates peak and the competition intensifies in the mortgage and savings market. However, despite the tough trading conditions, the bank maintains that its customers are "resilient" and has improved its predictions for certain sectors of the economy this year.
This comes amidst increasing competition among UK financial institutions vying to offer their customers superior deals in a climate of historically high interest rates. A "significant chunk" of borrowers, with loans totalling about £50 billion, are expected to refinance over the course of the year. "Not massively so," he emphasised, but added: "Overall I think that is positive from a customer activity point of view."