Lloyds Bank CEO says customers are struggling amidst soaring inflation

Families now spend an average of £89 more on energy, food and fuel each month, than they did pre-pandemic, Lloyds Banking Group says.

Average UK petrol and diesel prices were hitting regular daily records as of June 2022 – of around 191p per litre of petrol and 199p per litre of diesel.

In a financial update, chief executive Charlie Nunn said a fifth of its customers had to adapt spending significantly and avoid making major purchases.

He said that around one per cent of Lloyds customers were really struggling to make ends meet.

Inflation hit 9.4 per cent in June, the highest it’s been in four decades.

Lloyds revealed it had struggled to boost profits in the second quarter, amid fears that rising prices could make it harder for borrowers to keep up with loan and mortgage payments long-term.

LLoyds staff are being trained to help those struggling with finances while the bank stressed those in arrears were at low levels.Nunn said some of its customers would not have borrowed money from the bank, and so could not default.

UK banks have largely benefited from nine consecutive months of interest rate rises by the Bank of England, where policymakers attempt to control soaring inflation.

Nunn added that mortgage lending was likely to slow over the coming months.