Lloyds Banking Group (LLOY) Q3 2026 earnings summary

Executive summary

• 9M statutory profit after tax rose 46% to £4.835bn; underlying profit increased 36% to £6.6bn, with 17.9% RoTE.

• Income growth, improving operating leverage and stable credit performance supported reaffirmed 2026 guidance; strategic delivery is preparing for Accelerate 2030.

Financial highlights

• 9M net income was £14.8bn, up 9% YoY; Q3 net income was £5.1bn, up 2% QoQ.

• 9M NII rose 10% to £11.1bn; other income increased 10% to £5.0bn. Q3 other income was £1.686bn, up 8% YoY and down 1% QoQ.

• 9M operating costs were £7.2bn, up 1%; remediation charges fell to £61m from £912m, supporting a 49.3% cost:income ratio.

• 9M impairment was £930m versus £618m; Q3 charge was £313m. Statutory profit before tax rose 42% to £6.6bn for 9M.

Outlook and guidance

• 2026 guidance: NII >£14.9bn, cost:income ratio <50%, operating costs <£9.9bn, asset quality ratio ~25bps and RoTE >16%.

• 2026 capital generation guidance remains >200bps; CET1 is expected to be ~13.0% at year-end, with a progressive and sustainable ordinary dividend.

• Current market conditions imply 2026 NII modestly above £14.9bn; 2027 NII growth is expected to remain healthy but slow amid competitive asset and deposit markets.

• Q4 costs are expected to rise due to Bank Levy and investment-spend timing; 2026 cost guidance is unchanged.

• Structural hedge earnings are expected to exceed £7bn in 2026 and £8bn in 2027.