The UK-listed bank reported a significant improvement in its statutory profit for the first quarter from a year earlier.

Lloyds Banking Group yesterday reported a first-quarter 2026 statutory pre-tax profit of £2.0 billion ($2.7 billion), up by £500 million from a year earlier, benefiting from higher total income, the UK-listed bank said.

Underlying net interest income rose 8 per cent year-on-year to £3.6 billion, reflecting a higher banking net interest margin of 3.17 per cent, a rise of 14 basis points year-on-year.

Underlying other income rose 11 per cent on a year earlier to £1.6 billion, pushed by growth in customer activity.

Operating costs fell 3 per cent to £2.5 billion, helped by higher cost savings and a lower severance expense, partially offset by business growth costs, inflationary pressures and the impact of Lloyds Wealth (Schroders Personal Wealth). Last year, Lloyds took control of Schroders’ 49.9 per cent stake in SPW, giving the bank complete control.

Lloyds Banking Group said it had a Common Equity Tier 1 ratio of 13.4 per cent after the ordinary dividend accrual. 

Shares in Lloyds have weakened 2 per cent since the start of 2026.

Hargreaves Lansdown, the investment platform, gave the results a thumbs-up.

“Lloyds’ first-quarter update had a lot for investors to like, with the bank beating profit expectations while keeping its full-year targets firmly intact. Performance was helped by the structural hedge and steady lending momentum, while costs are being kept under control, and credit quality still looks resilient. That combination helped the bank deliver a clean profit beat versus consensus, with stronger margins, better cost performance and lower impairments than analysts had expected," Matt Britzman, senior equity analyst, Hargreaves Lansdown, said.

"The UK backdrop is still far from easy, and Lloyds has taken a more cautious view on the economy, in part because of the impact from the Middle East conflict, but the core engine of the business is performing well.

"The most important message is that guidance has been largely reiterated, with net interest income expectations nudged a touch higher. That suggests management still sees enough support from higher-for-longer rates to offset pressure elsewhere, including competitive mortgage pricing and a softer economic outlook. There are still areas to watch, particularly impairments and the wider impact of a weaker UK consumer backdrop, but this was a solid update overall. Lloyds looks to be entering the rest of the year with momentum, a strong capital position, and profit metrics running ahead of its own targets," Britzman said.

Separately, as reported by WealthBriefing today, Lloyds has appointed Alessandro Cummunale as managing director, head of wealth management and family offices coverage, within its corporate and institutional banking business.