Lloyds Banking Group’s statutory pre-tax profit for the first nine months of 2026 rose sharply as remediation charges fell away, with fee income lifted by the wealth business.

Lloyds Banking Group made a statutory profit before tax of £6.6 billion ($8.8 billion) in the nine months to 30 September 2026, up 42 per cent from £4.7 billion a year earlier. Return on tangible equity was 17.9 per cent, compared with 11.9 per cent in the same period of 2025.

Remediation charges fell to £61 million from £912 million, a figure that last year included £800 million for motor finance commission arrangements. 

Underlying net interest income rose 10 per cent to £11.1 billion. The banking net interest margin widened 17 basis points to 3.21 per cent, helped by structural hedge income and lending growth, partly offset by asset margin compression and competition for deposits.

Underlying other income also rose 10 per cent, to £5 billion. The bank attributed the gain to stronger customer activity, strategic investment and the addition of Lloyds Wealth, the advice business it built on Schroders Personal Wealth. Lloyds completed the acquisition of Schroders Personal Wealth in the fourth quarter of last year. 

Operating costs rose 1 per cent to £7.2 billion, with Lloyds Wealth among the sources of added expense. The underlying impairment charge rose to £930 million, giving an asset quality ratio of 25 basis points.

Underlying loans and advances to customers grew £14.4 billion to £495.5 billion. Customer deposits rose £6.3 billion to £502.8 billion, though retail balances fell £3.7 billion as the bank held back on pricing.

The common equity tier 1 (CET1) ratio was 13.3 per cent after dividends, the share buyback announced in July and the acquisition of digital wallet business Curve. The July buyback was for up to £1 billion, on top of the £1.75 billion programme announced with the 2025 full-year results. 

Lloyds kept its 2026 guidance, including underlying net interest income above £14.9 billion, a cost-to-income ratio below 50 per cent and return on tangible equity above 16 per cent. 

The figures arrived a day after the UK Budget raised taxes on banks. Among domestic peers, Barclays reported a 12 per cent rise in third-quarter pre-tax profit to £2.3 billion on 22 October 2026. NatWest Group reported its third-quarter results today.