Lloyds Banking Group stock: Profit rises as 2026 targets hold
Published on 11/05/2026 at 12:06 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSProfit Growth Meets Steady Guidance
- Statutory profit before tax reached 6.625 billion pounds for the first nine months of 2026, up 42 percent year on year.
- Underlying net interest income increased 10 percent to 11.084 billion pounds, while return on tangible equity reached 17.9 percent.
- The bank kept its 2026 targets unchanged and began executing its Accelerate 2030 strategy.
Lloyds Banking Group reported stronger nine-month earnings on Thursday, October 29, after the period ended September 30, 2026. In its Q3 2026 results announcement published by EQS on FT.com, the bank reported statutory profit before tax of 6.625 billion pounds for the first nine months, 42 percent above the year-earlier period.
Statutory profit after tax rose 46 percent to 4.835 billion pounds, while earnings per share increased to 7.6 pence from 4.8 pence. The comparison benefited from a lower remediation charge, although higher operating lease depreciation and impairment charges partly offset the improvement.
Income Growth Supports Returns
Underlying net interest income increased 10 percent to 11.084 billion pounds. Underlying other income also rose 10 percent to 4.996 billion pounds, lifting net income to 14.819 billion pounds, up 9 percent from the first nine months of 2025.
Banking net interest margin reached 3.21 percent, compared with 3.04 percent a year earlier. Lloyds said stronger structural hedge income and volume growth supported the margin, while asset margin compression and a competitive deposit market remained constraints. Average interest-earning banking assets grew 4 percent to 477.5 billion pounds.
Underlying profit rose 36 percent to 6.582 billion pounds. The underlying impairment charge increased to 930 million pounds, resulting in an asset quality ratio of 25 basis points. Operating costs were broadly stable at 7.246 billion pounds, and the cost-income ratio improved to 49.3 percent from 59.7 percent.
Guidance Remains Unchanged
Management kept its 2026 targets unchanged. The group continues to expect underlying net interest income above 14.9 billion pounds, a cost-income ratio below 50 percent with operating costs below 9.9 billion pounds, an asset quality ratio of around 25 basis points, and return on tangible equity above 16 percent.
Lloyds also expects capital generation above 200 basis points and plans to reduce its CET1 ratio to around 13.0 percent. The ratio stood at 13.3 percent at September 30. Customer loans reached 495.5 billion pounds, while customer deposits stood at 502.8 billion pounds.
Chief Executive Charlie Nunn said the group was delivering sustained financial strength and remained on track to meet its 2026 guidance. The bank is also moving into its next strategic phase, Accelerate 2030, which focuses on growing the core business, diversifying through innovation and simplifying operations. The investor focus now shifts to execution, deposit competition and the ability to sustain income growth as the current strategic cycle ends.
Lloyds Banking Group stock traded at 1.19 euros on Lang & Schwarz at 12:03 Berlin time on Thursday, November 5.
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Lloyds Banking Group at a glance
- Company: Lloyds Banking Group plc
- ISIN: GB0008706128
- Price: 1.19 euros on Lang & Schwarz, November 5, 2026 at 12:03 Berlin time
- Reporting period: Nine months ended September 30, 2026
- Statutory profit before tax: 6.625 billion pounds
- Return on tangible equity: 17.9 percent
