Source: Sharecast
In the three months to September end, pre-tax profit increased to £2.3bn from £1.2bn in the same period a year earlier, versus expectations of £2.28bn.
Net interest income was 10% higher at £3.8bn, in line with analysts’ expectations, while net income came in at £5.1bn, up from £4.6bn and also broadly in line with expectations.
Remediation charges tumbled to £22m in Q3 from £875m a year earlier, when the bank put aside £800m for costs associated with the car finance mis-selling scandal.
Lloyds said it continues to expect 2026 underlying net interest income to be greater than £14.9bn and return on tangible equity of greater than 16%.
Chief executive Charlie Nunn said: "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."
Lloyds’ results came a day after Chancellor John Healey announced in the Autumn Budget that banks will pay an extra 3% surcharge tax on UK profits above £100m for 15 months from January, taking the total surcharge to 6%. The rise was not as steep as feared.
At 0935 GMT, the shares were down 3.8% at 99.96p.
Neil Wilson, UK investor strategist at Saxo Markets, said the reaction to the results "implies investors are worried about the tax increases in the Budget and requiring a higher bar for earnings".
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