Lloyds Banking Group (LSE:LLOY) shares have edged down 1.0% to 97.55p after the group reiterated its 2026 guidance following a strong first-quarter report.
Underlying net interest income rose 8% to £3.6 billion in the quarter, driven by a banking net interest margin of 3.17% (up 14 basis points year‑on‑year) and average interest‑earning banking assets of £473.5 billion, while underlying other income increased 11% to £1.6 billion.
"We are confident in our delivery for the year ahead and reiterate our guidance for 2026," Charlie Nunn, Group Chief Executive.
Operating costs were down 3% to £2.5 billion with remediation of £11 million, underlying impairment was £295 million giving an asset quality ratio of c.25 basis points, and operating lease depreciation rose to £389 million.
Underlying loans and advances increased to £486.2 billion (up £5.1 billion in the quarter) while customer deposits were £495.9 billion (down £0.6 billion), CET1 was 13.4% after the ordinary dividend accrual and capital generation in the quarter was 41 basis points.
For 2026 the group reiterated guidance that underlying net interest income is now expected to be greater than £14.9 billion, cost:income ratio less than 50% including operating costs of less than £9.9 billion, asset quality ratio c.25 basis points, return on tangible equity greater than 16%, capital generation greater than 200 basis points (excludes capital distributions) and to pay down to a CET1 ratio of c.13.0%.
The interim management statement said the group will present its new strategy alongside the half‑year results.
