Lloyds says customers cutting back on streaming and gyms as inflation bites

Bank warns of more loan defaults amid cost of living crisis as it reports 14% fall in first-quarter pre-tax profit

Lloyds Banking Group has raised concerns over the UK economy's uncertain" outlook, warning the cost of living crisis had already forced customers to cut spending on services such as streaming and gyms and could mean more defaults on its loans.

Lloyds, the country's largest mortgage lender and considered a bellwether for the UK economy, said that while it did not have direct exposure to Russia, the war in Ukraine was affecting customers through higher energy and commodity prices, as well as supply chain disruption.