LLoyds Bank, still 40% owned by the UK tax payer, posted a profit of £288 million for the first quarter of 2012, against a loss of £3.5 billion a year ago, somewhat better than expected.

While Lloyds had already provisioned over £3 billion compensation for potential mis-selling complaints with regards to PPI, this was not deemed to be enough and the bottom line was hit by a further £375 million as consumer complaints came in at a higher level than expected.

In a thin market with many European markets shut for a May Day holiday, Lloyds Bank Group shares opened 2% higher.