2026 Q3 Interim Management Statement

Lloyds Banking Group plc Q3 2026 results 29 October 2026    
  RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2026 “The Group 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.” Charlie Nunn, Group Chief Executive Sustained strength in financial performance1 •   Statutory profit before tax of £6.6 billion (nine months to 30 September 2025: £4.7 billion), reflecting higher total income and a lower remediation charge, partially offset by higher charges for operating lease depreciation and impairment. Return on tangible equity of 17.9% •   Underlying net interest income of £11.1 billion, up 10% year-on-year. Higher banking net interest margin of 3.21%, up 17 basis points (up 3 basis points in the third quarter compared to the second quarter), from stronger structural hedge income, franchise-led volume growth and hence average interest-earning banking asset growth of 4% to £477.5 billion, partially offset by asset margin compression and a competitive deposit market •   Underlying other income of £5.0 billion, 10% higher year-on-year, with broad-based growth due to strengthening customer activity, the continued benefit of investments in strategic initiatives and the addition of Lloyds Wealth •   Operating lease depreciation of £1.3 billion, up 17% given fleet growth, the depreciation of higher value vehicles and a second quarter charge for reduced used car prices, partially offset by continued risk mitigation •   Operating costs of £7.2 billion, up 1% year-on-year, reflecting business growth costs, inflationary pressures and costs related to Lloyds Wealth, largely offset by continued cost savings, a lower severance expense and plateauing investment as the current strategic cycle culminates •   Strong and stable credit performance, with arrears low and stable. The underlying impairment charge of £930 million, increasing year-on-year, resulted in an asset quality ratio of 25 basis points, reflecting lower releases and an £88 million charge from updated multiple economic scenarios •   Underlying loans and advances to customers of £495.5 billion increased by £14.4 billion (3%) in the first nine months of 2026. Growth across Retail of £6.8 billion (or £8.6 billion excluding the impact of the securitisation of £1.8 billion of primarily legacy Retail mortgages in the second quarter) and Commercial Banking of £9.2 billion •   Underlying loans and advances to customers increased by £4.0 billion in the third quarter across Retail and Commercial Banking, or £5.1 billion excluding central items, mainly the fair value hedge from rising swap rates •   Customer deposits of £502.8 billion increased by £6.3 billion (1%) in the first nine months of 2026. Growth of £9.6 billion within Commercial Banking was partially offset by a reduction in Retail of £3.7 billion (mainly in the first quarter), due to disciplined pricing in the context of a competitive deposit market. Growth in the third quarter of £1.9 billion was driven by higher Commercial Banking deposits alongside broadly stable Retail balances •   Strong capital generation of 153 basis points, primarily reflecting banking build, partially offset by risk-weighted asset increases. This resulted in a CET1 ratio of 13.3% after the interim ordinary dividend, the foreseeable ordinary dividend accrual, the share buyback announced in July 2026 and the completed acquisition of Curve •   Risk-weighted assets of £247.4 billion, up £11.9 billion (5%), from lending growth partially offset by optimisation •   Tangible net assets per share of 55.4 pence, down 1.6 pence in both the year to date and the third quarter. Growth from attributable profit and a reduction in the number of shares in issue from share buyback programmes was more than offset by capital distributions and changes in the cash flow hedge reserve from increased longer-term rates On track to meet 2026 guidance Based on the sustained strength in our financial performance and our current macroeconomic assumptions, for 2026 the Group remains on track to deliver its full year guidance: •   Underlying net interest income of greater than £14.9 billion •   Cost:income ratio of less than 50% (including operating costs of less than £9.9 billion) •   Asset quality ratio of c.25 basis points •   Return on tangible equity of greater than 16% •   Capital generation of greater than 200 basis points2 •   To pay down to a CET1 ratio of c.13.0% 1 See the basis of presentation on page 17. 2 Excludes capital distributions.
  INCOME STATEMENT (UNDERLYING BASIS)A AND KEY BALANCE SHEET METRICS

	Nine months ended  30 Sep 2026 £m			Nine months ended 30 Sep 2025 £m			Change %		Three months ended 30 Sep 2026 £m			Three months ended 30 Sep 2025 £m			Change %
Underlying net interest income	11,084			10,106			10		3,806			3,451			10
Underlying other income	4,996			4,526			10		1,686			1,557			8
Operating lease depreciation	(1,261)			(1,075)			(17)		(420)			(365)			(15)
Net income	14,819			13,557			9		5,072			4,643			9
Operating costs	(7,246)			(7,176)			(1)		(2,370)			(2,302)			(3)
Remediation	(61)			(912)			93		(22)			(875)			97
Total costs	(7,307)			(8,088)			10		(2,392)			(3,177)			25
Underlying profit before impairment	7,512			5,469			37		2,680			1,466			83
Underlying impairment charge	(930)			(618)			(50)		(313)			(176)			(78)
Underlying profit	6,582			4,851			36		2,367			1,290			83
Restructuring	(51)			(16)					(17)			(7)
Volatility and other items	94			(157)					(18)			(109)			83
Statutory profit before tax	6,625			4,678			42		2,332			1,174			99
Tax expense	(1,790)			(1,356)			(32)		(620)			(396)			(57)
Statutory profit after tax	4,835			3,322			46		1,712			778
Earnings per share	7.6p			4.8p			2.8p		2.8p			1.0p			1.8p
Banking net interest marginA	3.21%			3.04%			17bp		3.25%			3.06%			19bp
Average interest-earning banking assetsA (£bn)	477.5			460.4			4		481.0			465.5			3
Cost:income ratioA	49.3%			59.7%			(10.4)pp		47.2%			68.4%			(21.2)pp
Asset quality ratioA	0.25%			0.18%			7bp		0.25%			0.15%			10bp
Return on tangible equityA	17.9%			11.9%			6.0pp		19.5%			7.5%			12.0pp

 
 

	At 30 Sep 2026			At 30 Jun 2026			Change %		At 31 Dec 2025			Change %
Underlying loans and advances to customersA,1 (£bn)	495.5			491.5			1		481.1			3
Customer deposits (£bn)	502.8			500.9					496.5			1
Loan to deposit ratioA	99%			98%			1pp		97%			2pp
CET1 ratio	13.3%			13.6%			(0.3)pp		14.0%			(0.7)pp
Pro forma CET1 ratioA,2	13.3%			13.1%			0.2pp		13.2%			0.1pp
Total capital ratio	17.9%			18.4%			(0.5)pp		18.9%			(1.0)pp
MREL ratio	31.2%			32.0%			(0.8)pp		32.2%			(1.0)pp
UK leverage ratio	5.0%			5.1%			(0.1)pp		5.4%			(0.4)pp
Risk-weighted assets (£bn)	247.4			241.8			2		235.5			5
Wholesale funding3 (£bn)	109.9			107.8			2		95.6			15
Liquidity coverage ratio4	143%			144%			(1)pp		145%			(2)pp
Net stable funding ratio5	123%			123%					124%			(1)pp
Tangible net assets per shareA	55.4p			57.0p			(1.6)p		57.0p			(1.6)p

A See page 16. 1 The increase between 31 December 2025 and 30 September 2026 is net of the impact of the securitisation of £1.8 billion of primarily legacy Retail mortgages in April 2026. 2 30 June 2026 pro forma CET1 ratio reflects the full impact of the share buyback in respect of the first half of 2026, announced in July 2026. 31 December 2025 pro forma CET1 ratio reflects the full impact of the share buyback in respect of 2025, announced in January 2026. 3 From the second quarter of 2026, the Group revised its definition of wholesale funding to comprise debt securities in issue and subordinated liabilities only. The 31 December 2025 comparative period is represented on a consistent basis. 4 The liquidity coverage ratio is calculated as an average of month-end observations over the last 12 months. 5 The net stable funding ratio is calculated as an average of the last four quarter-end observations.
  QUARTERLY INFORMATIONA

	Quarter ended 30 Sep 2026 £m			Quarter ended 30 Jun 2026 £m			Change %			Quarter ended 31 Mar 2026 £m			Quarter ended 31 Dec 2025 £m			Quarter ended 30 Sep 2025 £m			Quarter ended 30 Jun 2025 £m			Quarter ended 31 Mar 2025 £m
Underlying net interest income	3,806			3,709			3			3,569			3,529			3,451			3,361			3,294
Underlying other income	1,686			1,705			(1)			1,605			1,594			1,557			1,517			1,452
Operating lease depreciation	(420)			(452)			7			(389)			(379)			(365)			(355)			(355)
Net income	5,072			4,962			2			4,785			4,744			4,643			4,523			4,391
Operating costs	(2,370)			(2,402)			1			(2,474)			(2,585)			(2,302)			(2,324)			(2,550)
Remediation	(22)			(28)			21			(11)			(56)			(875)			(37)			–
Total costs	(2,392)			(2,430)			2			(2,485)			(2,641)			(3,177)			(2,361)			(2,550)
Underlying profit before impairment	2,680			2,532			6			2,300			2,103			1,466			2,162			1,841
Underlying impairment charge	(313)			(322)			3			(295)			(177)			(176)			(133)			(309)
Underlying profit	2,367			2,210			7			2,005			1,926			1,290			2,029			1,532
Restructuring	(17)			(16)			(6)			(18)			(30)			(7)			(5)			(4)
Volatility and other items	(18)			74						38			87			(109)			(37)			(11)
Statutory profit before tax	2,332			2,268			3			2,025			1,983			1,174			1,987			1,517
Tax expense	(620)			(700)			11			(470)			(548)			(396)			(577)			(383)
Statutory profit after tax	1,712			1,568			9			1,555			1,435			778			1,410			1,134
Earnings per share	2.8p			2.4p			0.4p			2.4p			2.2p			1.0p			2.1p			1.7p
Banking net interest marginA	3.25%			3.22%			3bp			3.17%			3.10%			3.06%			3.04%			3.03%
Average interest-earning banking assetsA (£bn)	481.0			477.9			1			473.5			470.3			465.5			460.0			455.5
Cost:income ratioA	47.2%			49.0%			(1.8)pp			51.9%			55.7%			68.4%			52.2%			58.1%
Asset quality ratioA	0.25%			0.26%			(1)bp			0.25%			0.14%			0.15%			0.11%			0.27%
Return on tangible equityA	19.5%			17.0%			2.5pp			17.0%			15.7%			7.5%			15.5%			12.6%
	At 30 Sep 2026			At 30 Jun 2026			Change %			At 31 Mar 2026			At 31 Dec 2025			At 30 Sep 2025			At 30 Jun 2025			At 31 Mar 2025
Underlying loans and advances to customersA,1 (£bn)	495.5			491.5			1			486.2			481.1			477.1			471.0			466.2
Customer deposits (£bn)	502.8			500.9						495.9			496.5			496.7			493.9			487.7
Loan to deposit ratioA	99%			98%			1.0pp			98%			97%			96%			95%			96%
CET1 ratio	13.3%			13.6%			(0.3)pp			13.4%			14.0%			13.8%			13.8%			13.5%
Pro forma CET1 ratioA,2,3	13.3%			13.1%			0.2pp			13.4%			13.2%			13.8%			13.8%			13.5%
Total capital ratio	17.9%			18.4%			(0.5)pp			18.2%			18.9%			18.6%			19.0%			18.4%
MREL ratio	31.2%			32.0%			(0.8)pp			31.7%			32.2%			31.2%			31.4%			30.4%
UK leverage ratio	5.0%			5.1%			(0.1)pp			5.1%			5.4%			5.2%			5.4%			5.5%
Risk-weighted assets (£bn)	247.4			241.8			2			240.8			235.5			232.3			231.4			230.1
Wholesale funding4 (£bn)	109.9			107.8			2			108.6			95.6			96.0			86.5			85.5
Liquidity coverage ratio5	143%			144%