British bank Lloyds on Wednesday announced a surge in net profit during the first quarter on lower-than-expected credit losses and economic recovery in the wake of the coronavirus pandemic.

Profit after tax grew to £1.4 billion (€1.6bn), “supported by business momentum and a release of expected credit loss provisions, given the improved economic outlook,” Lloyds Banking Group said in a statement. That compared with profit after tax of £480 million in the first three months of 2020.

Lloyds depends on the country’s economic performance as retail banking is its core business.

Lloyds depends on the country’s economic performance as retail banking is its core business

“The coronavirus pandemic continues to have a significant impact on people, businesses and communities in the UK and around the world,” cautioned the bank’s outgoing chief executive Antonio Horta-Osorio. 

“Whilst we are seeing positive signs, notably the progress of the vaccine roll-out and the emergence from lockdown restrictions, the outlook remains uncertain.”