Lloyds Banking Group plc (LON:LLOY) has announced its results for the nine months ended 30 September 2026
“The Group is delivering sustained strength in financial performance, with continued income growth, improving operating leverage and strong and stable credit performance. Our differentiated business model is performing well and we are on track to meet our 2026 guidance. We are maintaining strategic delivery as we continue to focus on supporting UK households and businesses. As we near completion of our current strategic chapter, we are excited to begin executing on our new strategy, Accelerate 2030. This will ensure we can deliver continued, sustainable value for our customers and shareholders.”
Charlie Nunn, Group Chief Executive
Sustained strength in financial performance1
• Statutory profit before tax of £6.6 billion (nine months to 30 September 2025: £4.7 billion), reflecting higher total income and a lower remediation charge, partially offset by higher charges for operating lease depreciation and impairment. Return on tangible equity of 17.9%
• Underlying net interest income of £11.1 billion, up 10% year-on-year. Higher banking net interest margin of 3.21%, up 17 basis points (up 3 basis points in the third quarter compared to the second quarter), from stronger structural hedge income, franchise-led volume growth and hence average interest-earning banking asset growth of 4% to £477.5 billion, partially offset by asset margin compression and a competitive deposit market
• Underlying other income of £5.0 billion, 10% higher year-on-year, with broad-based growth due to strengthening customer activity, the continued benefit of investments in strategic initiatives and the addition of Lloyds Wealth
• Operating lease depreciation of £1.3 billion, up 17% given fleet growth, the depreciation of higher value vehicles and a second quarter charge for reduced used car prices, partially offset by continued risk mitigation
• Operating costs of £7.2 billion, up 1% year-on-year, reflecting business growth costs, inflationary pressures and costs related to Lloyds Wealth, largely offset by continued cost savings, a lower severance expense and plateauing investment as the current strategic cycle culminates
• Strong and stable credit performance, with arrears low and stable. The underlying impairment charge of £930 million, increasing year-on-year, resulted in an asset quality ratio of 25 basis points, reflecting lower releases and an £88 million charge from updated multiple economic scenarios
• Underlying loans and advances to customers of £495.5 billion increased by £14.4 billion (3%) in the first nine months of 2026. Growth across Retail of £6.8 billion (or £8.6 billion excluding the impact of the securitisation of £1.8 billion of primarily legacy Retail mortgages in the second quarter) and Commercial Banking of £9.2 billion
• Underlying loans and advances to customers increased by £4.0 billion in the third quarter across Retail and Commercial Banking, or £5.1 billion excluding central items, mainly the fair value hedge from rising swap rates
• Customer deposits of £502.8 billion increased by £6.3 billion (1%) in the first nine months of 2026. Growth of £9.6 billion within Commercial Banking was partially offset by a reduction in Retail of £3.7 billion (mainly in the first quarter), due to disciplined pricing in the context of a competitive deposit market. Growth in the third quarter of £1.9 billion was driven by higher Commercial Banking deposits alongside broadly stable Retail balances
• Strong capital generation of 153 basis points, primarily reflecting banking build, partially offset by risk-weighted asset increases. This resulted in a CET1 ratio of 13.3% after the interim ordinary dividend, the foreseeable ordinary dividend accrual, the share buyback announced in July 2026 and the completed acquisition of Curve
• Risk-weighted assets of £247.4 billion, up £11.9 billion (5%), from lending growth partially offset by optimisation
• Tangible net assets per share of 55.4 pence, down 1.6 pence in both the year to date and the third quarter. Growth from attributable profit and a reduction in the number of shares in issue from share buyback programmes was more than offset by capital distributions and changes in the cash flow hedge reserve from increased longer-term rates
On track to meet 2026 guidance
Based on the sustained strength in our financial performance and our current macroeconomic assumptions, for 2026 the Group remains on track to deliver its full year guidance:
• Underlying net interest income of greater than £14.9 billion
• Cost:income ratio of less than 50% (including operating costs of less than £9.9 billion)
• Asset quality ratio of c.25 basis points
• Return on tangible equity of greater than 16%
• Capital generation of greater than 200 basis points2
• To pay down to a CET1 ratio of c.13.0%
1 See the basis of presentation on page 17.
2 Excludes capital distributions.
