Lloyds Banking Group reports 42% profit increase to £6.6bn

Lloyds Banking Group has reported a 42% rise in statutory pre-tax profit for the first nine months of 2026, reaching £6.6 billion. This significant increase from the £4.7 billion recorded in the previous year is largely attributed to a much lower remediation charge of £61 million, compared to the £912 million charge seen in the prior year which included £800 million for motor finance commission arrangements.

Underlying net interest income rose 10% to £11.1 billion, while the banking net interest margin widened to 3.21%. The group maintained its 2026 guidance, projecting net interest income to exceed its £14.9 billion target and expecting a return on tangible equity above 16%. Chief Executive Charlie Nunn stated the group is preparing to launch a new strategy, ‘Accelerate 2030’.

Despite the profit jump, impairment charges increased to £930 million from £618 million, including £88 million linked to economic uncertainty stemming from Middle East conflicts. Additionally, operating lease depreciation for the bank’s car leasing fleet rose 17% to £1.3 billion, partly due to declining used car prices.