Third-quarter net income rose 9% to £5.1bn, broadly as expected. Within that, both interest income and other income were higher. Banking net interest margin was up from 3.06% to 3.25%.
Underlying profit rose 83% to £2.4bn (£2.3bn expected). That growth was flattered by last year's large motor finance charge. Beyond that, the improvement came from higher net income and good cost control, partly offset by higher impairments.
The group's CET1 ratio, a key measure of financial strength, stands at 13.3%, and the aim is to bring it down to c.13.0% by the end of 2026.
All 2026 guidance was reiterated. That includes underlying net interest income of more than £14.9bn and a return on tangible equity above 16%.
The shares fell 3.2 in early trading.
Our view
HL view to follow.
Lloyds key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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