For example, for the three months ended 31 March 2016, Lloyds reported an underlying profit of £2.05bn, unchanged from the year-ago period. The bank's net interest margin, the difference between interest income generated and the amount of interest paid out to depositors, ticked higher by 10 bps to 2.75% from 2.64% as reported last quarter. Moreover, Lloyds' cost-to-income ratio fell to 47.4%, down from 47.7% a year ago, return on equity came in at to 13.8% and Lloyds' capital reserves expanded to 13%, from 12.8% at the end of last year. Even if these metrics don't improve over the next 12 months, Lloyds' earnings will still get a boost from the bank's decision to buy back so-called enhanced capital notes, which will give the lender a £900m cash injection over the next four-and-a-half years.