The bank’s return on tangible equity reached 17.9 percent, a substantial improvement over the 11.9 percent recorded in 2025. Underlying net interest income climbed 10 percent to £11.1 billion, bolstered by structural hedge income and expanded lending. The net interest margin widened by 17 basis points to 3.21 percent, balancing out asset margin compression and competitive pressures in the deposit market.
Lloyds Profit Climbs 42 Percent as Remediation Costs Fade
Lloyds Banking Group reported a statutory pre-tax profit of £6.6 billion for the first nine months of 2026, marking a 42 percent surge from the previous year. The significant jump follows a sharp decline in remediation charges, which plummeted from £912 million to just £61 million over the same period.
Fee income received a boost from the bank’s wealth management division, following the acquisition of Schroders Personal Wealth. While operating costs rose slightly to £7.2 billion, the bank maintained its 2026 outlook, targeting a return on tangible equity above 16 percent. These results emerge as the UK banking sector adjusts to a new tax regime, with peers like Barclays and NatWest navigating similar fiscal headwinds.
Comments (0)
No comments yet. Be the first!