Lloyds reports near‑doubling Q3 profit and calls UK bank tax hike unhelpful
Lloyds Banking Group posted third‑quarter pre‑tax profit of £2.3 billion, almost double the £1.2 billion a year earlier, and nine‑month pre‑tax profit of £6.6 billion, a 42 % increase. The bank’s CFO William Chalmers criticised the government’s decision to raise the bank surcharge from 3 % to 6 % for 15 months, saying it would hinder lending and growth. Lloyds reaffirmed its outlook for underlying net interest income above £14.9 billion for 2026 and said it still expects to meet its financial targets despite the tax change.
Why it matters
Analyst Gary Greenwood (Shore Capital) notes the higher tax will lift Lloyds’ effective tax rate modestly, trimming earnings by about 4 % next year, but the bank still has capacity for shareholder returns. The tax increase could also pressure lending costs and affect the bank’s profitability outlook.
Key facts
- 1Third‑quarter pre‑tax profit was £2.3 billion, up from £1.2 billion a year earlier. londonlovesbusiness.com
- 2Nine‑month pre‑tax profit rose 42 % to £6.6 billion. rttnews.com
- 3Underlying net interest income outlook for 2026 was reaffirmed at over £14.9 billion. rttnews.com
- 4The UK bank surcharge will increase from 3 % to 6 % for 15 months, expected to raise £1.5 billion for the Treasury. londonlovesbusiness.com
- 5Shares closed up 1.71 % on the day of the results release. rttnews.com
- 6Shares fell 4.8 % to 99 p after the results were announced. bmmagazine.co.uk
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.