Morningstar

Lloyds Banking Profit Climbs on Stronger Net Interest Income

Provided by Dow Jones

By Michael Hennessey 




  Lloyds Banking Group backed its 2026 guidance as it reported higher profit for the third quarter on stronger net interest income and a lower remediation charge compared to last year's motor finance probe provision. 



  The British bank on Thursday posted 2.33 billion pounds ($3.11 billion) in pretax profit for the third quarter, up from 1.17 billion pounds a year ago. The print beat the analyst estimate of 2.28 billion pounds, according to a consensus provided by the company. 



  Profit jumped as the bank's third-quarter remediation charge was just 22 million pounds, down sharply from 875 million pounds a year ago. Last year, Lloyds registered an 800 million-pound charge to cover potential payouts for an industry-wide probe into commissions paid on car loans. 



  Net income--its top-line metric--was 9.2% higher at 5.07 billion pounds, below consensus estimates of 5.11 billion pounds. Net interest income climbed 10% to 3.81 billion pounds, below expectations of 3.83 billion pounds. 



  Looking ahead, the bank said it is on track to meet its previously announced 2026 guidance, including for underlying net interest income of more than 14.9 billion pounds. 





  Write to Michael Hennessey at michael.hennessey@wsj.com 





  (END) Dow Jones Newswires



  October 29, 2026 03:44 ET (07:44 GMT)


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