Lloyds Banking Group (LSE:LLOY) on Thursday reported statutory profit before tax of £6.6bn for the nine months to 30 September, up 42% from £4.7bn a year earlier, as the London-listed bank said it remains on track to meet its full-year 2026 guidance.
Return on tangible equity rose to 17.9% from 11.9%, with underlying profit up 36% to £6.58bn.
Underlying net interest income climbed 10% to £11.08bn, supported by a banking net interest margin of 3.21%, up 17 basis points year-on-year, as structural hedge income grew and average interest-earning banking assets rose 4% to £477.5bn.
Underlying other income increased 10% to £5bn, with growth spread across the retail, insurance and wealth businesses; the insurance, pensions and investments unit rose 14% on the back of the Lloyds Wealth addition and strong Workplace performance, partly offset by higher general insurance claims from an industry-wide subsidence event.
Operating lease depreciation jumped 17% to £1.26bn on fleet growth and a second-quarter charge for weaker used car prices.
Operating costs rose 1% to £7.25bn, while the remediation charge fell sharply to £61m from £912m a year earlier, when the group booked £800m against motor finance commission arrangements; no further charges relating to that issue were recognised this period.
The underlying impairment charge rose to £930m from £618m, lifting the asset quality ratio to 25 basis points, which included an £88m charge tied to updated economic scenarios reflecting the deteriorating outlook linked to the Middle East conflict.
Underlying loans and advances to customers grew £14.4bn over the nine months to £495.5bn, with retail up £6.8bn and Commercial Banking up £9.2bn; customer deposits rose £6.3bn to £502.8bn, as Commercial Banking growth of £9.6bn offset a £3.7bn retail decline tied to competitive deposit pricing.
Capital generation reached 153 basis points in the first nine months, leaving the CET1 ratio at 13.3% after the interim dividend, the foreseeable dividend accrual, the July share buyback and the completed acquisition of Curve.
Risk-weighted assets rose £11.9bn to £247.4bn, driven by lending growth.
"The Group is delivering sustained strength in financial performance, with continued income growth, improving operating leverage and strong and stable credit performance," said Charlie Nunn, Group Chief Executive, adding that the bank is "excited to begin executing on our new strategy, Accelerate 2030" as it nears the end of its current strategic chapter.
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Lloyds confirmed its £1.75bn share buyback announced with the 2025 full-year results completed on 24 September, with approximately 1.7bn shares repurchased, while the further £1bn buyback announced in July had bought back 0.2bn shares for £0.2bn by period end.
Tangible net assets per share fell to 55.4p, down 1.6p over both the quarter and the year to date, as capital distributions and cash flow hedge reserve movements outweighed profit growth and share count reduction.
Management reiterated all 2026 guidance metrics: underlying net interest income above £14.9bn (now expected modestly above that level given current market conditions), a cost:income ratio below 50%, an asset quality ratio around 25 basis points, return on tangible equity above 16%, capital generation above 200 basis points, and a CET1 ratio target of approximately 13.0%.