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Perhaps unsurprisingly, the lender said its customers were being cautious, avoiding taking out personal loans and instead turning to depositing their cash.
It said it had seen higher customer spending prior to stricter Covid-19 restrictions introduced in November and December, but this fell back as tiering and lockdowns were introduced.
Customer deposits rose 0.9 per cent to £68.1billion in the quarter, as customers spent less and businesses maintained healthy balance sheets to get through the pandemic.
Personal lending fell 2 per cent to £5.1billion as lockdown restrictions reduced credit card and other spending, while mortgages reduced by a smaller 0.2 per cent to £58.2billion compared to the previous quarter.