Lloyds posts 42% profits hike as remediation costs fall – Daily Business

Lloyds sustained strength (pic: DB Media Services)

A day after the Chancellor hiked taxes paid by banks, Lloyds Banking Group has posted a sharp increase in profits.

The owner of Bank of Scotland, Halifax and Scottish Widows said statutory profit before tax came in a £6.6 billion for the nine months ended 30 September, a 42% increase from the prior year.

It was driven by higher total income and a reduced remediation charge. Underlying net interest income rose 10% to £11.1bn, with a net interest margin of 3.21%, and underlying other income increased 10% to £5bn.

The group maintained its 2026 guidance, expecting underlying net interest income above £14.9bn and a cost:income ratio below 50%.

Chief executive Charlie Nunn said: “The troup is delivering sustained strength in financial performance, with continued income growth, improving operating leverage and strong and stable credit performance.

“Our differentiated business model is performing well and we are on track to meet our 2026 guidance. We are maintaining strategic delivery as we continue to focus on supporting UK households and businesses.

“As we near completion of our current strategic chapter, we are excited to begin executing on our new strategy, Accelerate 2030. This will ensure we can deliver continued, sustainable value for our customers and shareholders.”

Nick Sherrard, managing director of Label Sessions, said: “Lloyds’ income is growing, costs are tightly controlled, credit quality remains stable, and capital generation is strong.

“Those are all signs that the transformation of the past five years has largely delivered what it set out to achieve and the bank is, to all intents and purposes, running efficiently and in line with guidance.

“The more interesting question right now is what Lloyds does with that solid foundation. As it prepares to launch its next chapter, investors will be looking beyond efficiency metrics and asking what the bank is going to do to drive its next phase of growth.

“With a large customer base, a growing wealth proposition, and the addition of the likes of Curve, Lloyds has assembled many of the building blocks needed to become a financial platform rather than simply a bank.

“The big opportunity is to help customers manage their entire financial lives, not just the products they hold with Lloyds – in doing so, carving out a truly differentiated proposition from its peers.”

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