Lloyds sees its customers ditch 2.2 million subscription services since last summer as inflation bites

Lloyds Banking Group has seen its customers ditch 2.2 million subscription services since last summer in the face of soaring inflation as it posted a fall in half-year profits.

The high street lending giant said it was seeing increasing signs that customers are battening down the hatches amid the cost-of-living crisis, building up savings for a financial buffer and axing non-essential subscriptions.

But it said it had yet to see a rise in borrowers falling behind with repayments, despite the inflation pressures.

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It reported a 6 per cent fall in half-year profits to £3.7bn after setting aside £377m amid the rising cost of living and an increasingly uncertain economic outlook.

Lloyds Bank.Lloyds Bank.
Lloyds Bank.

The group said £95m of its half-year impairment charge was due to a weaker economic backdrop in the UK as soaring inflation affects consumer spending.

But the profit haul was better than the £3.2bn expected in the market and on an underlying basis, Lloyds saw profits rise 34 per cent to £4.1bn in the first six months of 2022.

Despite the wider economic woes, the bank raised its full-year outlook across a raft of performance measures.

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Chief executive Charlie Nunn said: "While the world has changed significantly since February, our strategic focus remains clear and disciplined.

"Our strong financial performance demonstrates the resilience of our business model and customer relationships, and has enabled us to enhance guidance for 2022.

"Just as we remain well-placed to withstand the current macroeconomic uncertainty and continue to generate significant capital for our shareholders, so too do we remain committed to maintaining the support we give to our customers every day as they adapt to the challenges they face."