Lloyds has put aside £339m in contingency funds following a ruling that it had no right to unilaterally break an investment management contract with Standard Life Aberdeen.
In March, an arbitration panel rule that Lloyds was wrong to pull out of a deal to have SLA manage £100bn of assets for it wealth management arm and pensions business Scottish Widows.
The bank's decided to cut short the contract with SLA last year saying that the merged group was a direct competitor. Lloyds has already awarded an £80bn contract to Schroders, with the assets underpinning a wealth management joint venture between the two City giants.
While Brexit uncertainty persists, and continued uncertainty could further impact the economy, I remain confident that our unique business model, and in particular our market leading efficiency and targeted investment, will continue to deliver superior performance"
The balance of the funds has been pledged to BlackRock.
The revelation came as Lloyds Banking Group reported flat first-quarter pre-tax profits at £1.6bn as it warned Brexit uncertainty could take a further toll on the UK economy.
The Bank of Scotland owner's figures also revealed a further £100m charge for the payment protection insurance (PPI) scandal.
António Horta-Osório, the bank's chief executive, said that the lack of clarity about the UK's exit from the European Union could "further impact the economy".
"‘While Brexit uncertainty persists, and continued uncertainty could further impact the economy, I remain confident that our unique business model, and in particular our market leading efficiency and targeted investment, will continue to deliver superior performance."
On an underlying basis, it reported an 8% rise in profits to £2.2bn for the three months to March 31.
Chief financial officer George Culmer said the bank believed an interest rate rise had been pushed back.
"Our planning assumption was that we expected a rate rise towards the back end of this year. The market is now pushing that out further into next year and beyond ... And I probably think our thoughts would be moving with the market as well," he said.
Mortgage lending was down £4.9bn on the previous year in the face of tough competition, partly offset by growth in unsecured credit markets including motor finance.
"Our expectation is by the end of the year we'll be back in line in terms of balances and we expect to close 2019 with mortgage balances in line with the end of 2018," Culmer told reporters.
"So that will probably be slightly below market growth but that's reflective of the competitive market out there at the moment."
Lloyds also remained tight-lipped on whether it plans to launch further share buybacks after regulators this week allowed the lender to free up around £1bn in capital.
The Bank of England's Prudential Regulation Authority (PRA) set Lloyds a lower level of the so-called "systemic risk buffer" - a requirement designed to boost the capital strength of retail banks - a move seen as potentially paving the way for further share buybacks.
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