Lloyds’ first quarter update reveals a lot about the state of the UK economy. The country has been getting back on its feet, which is reflected by an increase in lending and savings deposits for Lloyds. However, the outlook is less than rosy.
Russ Mould, investment director at AJ Bell, said: “It’s serious when a bank talks about proactively contacting customers that could be facing financial troubles to offer help and guidance.
“This is quite a different tone from a company whose key messages were recently focused on expansion into wealth management – i.e. helping the rich to look after their money.
“It’s a reminder that Lloyds’ customer base is broad and that having a caring mentality is the right approach, even if it doesn’t necessarily result in earnings growth.
“Banks cannot alienate a chunk of their customer base simply because they don’t match the target market for future growth. Lloyds’ roots lie in helping people of all types and this inclusive approach is fundamentally correct.
“The bank doesn’t want bad debts on its books, but neither does it want customers to be in trouble, so it is in its own interest and of society to help people manage their finances during this cost of living crisis. Lloyds is in a strong position financially to weather any storm but many of its customers won’t be.”