Lloyds profits jump 33%

Lloyds Banking Group reported a 33% surge in first-quarter pre-tax profit, reaching £2.4 billion and beating analyst estimates by a significant margin.

The UK's largest mortgage lender benefited from higher interest rates and increased lending income, even as it warned of potential headwinds from the war in Iran.

Executives cautioned that the conflict's impact on energy prices and inflation could lead to rising unemployment and a worsening economic outlook for the UK in the second half of the year.

The strong results have prompted fresh calls from some politicians for a windfall tax on banks that are profiting from the current geopolitical instability.