london april 27 reuters  lloyds banking group lloyl reported better than expected profits for the first three months of the year on wednesday as britains largest mortgage lender largely shrugged off the countrys worsening cost of living crisis the bellwether bank posted quarterly pretax profits of 16 billion pounds 201 billion down from 19 billion pounds reported the previous year but ahead of a 14 billion pound average of analyst forecasts compiled by the bank bank finances were lifted last year by the countrys rebound from covid19 pandemic lockdowns and the bank of england ratcheting up interest rates from historic lows but soaring inflation  partly fuelled by the economic shockwaves of russias invasion of ukraine  has threatened the outlook read more whilst we are seeing continued recovery from the coronavirus pandemic the outlook for the uk economy remains uncertain particularly with regards to the persistency and impact of higher inflation the banks chief executive charlie nunn said lloyds said that despite facing economic uncertainty its underlying performance meant it could increase its forecast for return on tangible equity and net interest margin key measures of profitability lloyds now expects banking net interest margin to be 270 basis points this year up from 260 basis points and to make a return greater than 11 compared with a 10 target outlined in february the lenders results contrasted with rival hsbc which was forced to shelve plans for new stock buybacks in its earnings on tuesday read more reporting by iain withers and lawrence white editing by sinead cruise