Lloyds and Eastern Bankshares Post Strong Q1 Earnings

Lloyds Banking Group reported a 33% rise in first‑quarter 2026 pre‑tax profit to £2.0 billion, with underlying net interest income up 8% to £3.6 billion and a 14‑basis‑point increase in net interest margin. The bank lifted its full‑year net interest income guidance above £14.9 billion, kept its cost‑to‑income ratio target below 50% and its return‑on‑tangible‑equity target above 16%. A £151 million impairment linked to the Middle‑East conflict and a £1.95 billion regulatory provision for past motor‑finance mis‑selling were highlighted as key risk factors.

Eastern Bankshares also showed solid performance, with stable net interest margins and only modest cost growth. Earnings were driven by a steady mix of interest and fee income, supported by a strong deposit base and moderate credit growth. The bank’s results were described as being in the mid‑to‑upper three‑digit million‑dollar range, underscoring a conservative balance‑sheet approach that appeals to risk‑averse investors.