Lloyds Banking Group profits were down 28% in the first quarter.

The banking group, which has a headquarters in Barnwood, posted pre-tax profit of £1.6 billion for the first three months of the year, down from £2.3billion a year ago, as reported by This is Money.

Profits were hit by a combination of peaking interest rates and increased competition in the mortgage market.

But Lloyds said profits were in line with expectation and it remains confident for the coming years. It said it is continuing to support customers and to execute its strategic outcomes, which will deliver more sustainable returns for all of its stakeholders.

The banking group announced two weeks ago that it was making job cuts in its risk division.