Britain’s Lloyds Banking Group said that net profit sank by almost a third in the first quarter of this year, hit partly by a significant increase in costs.

After-tax profit slid 29 percent to £1.1 billion ($1.4 billion) in the three months to March from £1.5 billion a year earlier, it said in a results statement.

Lloyds, the first major UK bank to log first-quarter numbers, added that operating costs jumped 11 percent to £2.4 billion.

The lender’s performance was also dented by falling net interest income — which is the difference between what it generates from loans and pays out for deposits.

“The group is continuing to deliver in line with expectations in the first quarter of 2024,” said Lloyds chief executive Charlie Nunn in the earnings release.