UK's Lloyds Q3 profit nearly doubles on lending growth

Lloyds Banking

Yesterday 07:08

Overview
UK lender's Q3 statutory pretax profit nearly doubled yr/yr
Q3 underlying net interest income rose 10% yr/yr
Company completed £1.75 bln buyback, began £1.0 bln buyback in July 2026

Outlook
Lloyds expects 2026 underlying net interest income of more than £14.9 bln
Company sees 2026 cost:income ratio below 50%, with operating costs under £9.9 bln
Lloyds expects 2026 asset quality ratio around 25 basis points

Result Drivers
STRUCTURAL HEDGE INCOME - Co said higher net interest income was driven by increased structural hedge income from reinvestment at higher rates
LENDING GROWTH - Co cited broad-based lending growth in Retail and Commercial Banking as supporting income
CUSTOMER ACTIVITY & STRATEGIC INITIATIVES - Co attributed higher other income to stronger customer activity and benefits from strategic investments

Company press release: ID:nRSc8897Aa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Pretax Profit
 
GBP 2.33 bln
 
Q3 Underlying Net Interest Income
 
GBP 3.81 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Lloyds Banking Group PLC is GBp126.00, about 21.3% above its October 28 closing price of GBp103.90
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Oct 28 - European banks beat profit forecasts, Brazil overshadows Santander 
Oct 28 - BNP Paribas beats Q3 profit forecasts, unveils €1.3 billion share buyback
Oct 28 - UBS Q3 net profit rises 8% yr/yr

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)