Lloyds lifts third-quarter pretax profit on higher net interest income

what happened

Lloyds Banking Group confirmed its 2026 targets after reporting higher third-quarter profit. Dow Jones Newswires said pretax profit reached 2.33 billion pounds ($3.11 billion), up from 1.17 billion a year earlier and above the 2.28 billion pounds consensus.

The gain came from stronger net interest income, which climbed 10% to 3.81 billion pounds, and a much smaller remediation charge of 22 million pounds, versus 875 million a year before. Net income rose 9.2% to 5.07 billion pounds but missed the 5.11 billion estimate, while net interest income also came in slightly under the 3.83 billion expected.

The bank said it remains on track to meet previously announced 2026 goals, including underlying net interest income above 14.9 billion pounds.

why it matters

For markets, the profit beat and the sharp drop in one-off charges matter most, though revenue and net income were a little softer than expected. UK bank results are closely tied to interest rates and lending, so investors will watch net interest income and the full-year outlook.

market impact

Lloyds and UK bank shares: the profit beat supports the stock, while weaker revenue holds it back

• ↔Lloyds Banking Group shares mixed — pretax profit and lower charges beat forecasts, but revenue and net income fell short

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