New Business Total new business lending increased by 2.4% in the quarter and 7.1% compared to Q1 2020. Volumes reflected a combination of lower activity due to the continuation of lockdowns and the commencement of a phased return to pre-pandemic lending criteria in Motor Finance. Lending The loan book contracted by 1%. Business Finance and Consumer Finance combined lending remained static, with the reduction predominately a result of the amortisation of the closed Asset Finance and Consumer Mortgage books. Credit performance remained benign. Deposits Customer deposits continue to be managed in line with funding requirements and effective management of the product mix contributed to a further reduction in the cost of funds.
Further Information Barclays Bank PLC, acting through its Investment Bank ( Barclays ), which is authorised by the Prudential Regulation Authority and regulated in the United Kingdom by the Financial Conduct Authority and the Prudential Regulation Authority, is acting exclusively for Intact and no one else in connection with the matters referred to in this announcement and will not be responsible to anyone other than Intact for providing advice in relation to the Offer or any other matters referred to in this announcement. In accordance with the Code, normal United Kingdom market practice and Rule 14e-5(b) of the Exchange Act, Barclays will continue to act as exempt principal trader in RSA securities on the London Stock Exchange. These purchases and activities by exempt principal traders which are required to be made public in the United Kingdom pursuant to the Code will be reported to a Regulatory Information Service and will be available on the London Stock Exc