Investors

Lloyds Banking Group again demonstrated sustained strength in financial performance in our 2026 Q3 results. Our differentiated business model is performing well and we are on track to meet our 2026 guidance.

Lloyds Banking Group’s statutory profit before tax for the first nine months of 2026 was £6,625 million, 42% higher than in the first nine months of 2025, reflecting higher total income and a lower remediation charge, partially offset by higher charges for operating lease depreciation and impairment. Profit after tax was £4,835 million and earnings per share were 7.6 pence.

Over 2022 to 2026 we transformed the Group by building on our leading scale, breadth and connectivity. We restored leadership in key markets, while unlocking the potential of digital and AI, and driving cost and capital efficiency. 

We’re on course to generate c.£5 billion net income growth over the plan period, equating to a mid-single-digit CAGR (compound annual growth rate) and including c.£2 billion of strategic initiative revenues. We have also realised more than £2 billion of gross cost savings, having surpassed our original targets. This has helped support £17 billion of shareholder distributions since 2021, while increasing the ordinary dividend per share by more than 130% since the first half of 2021. 

Based on the sustained strength in our financial performance and our current macroeconomic assumptions, for 2026 the Group reiterates its 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 points.
• To pay down to a CET1 ratio of c.13.0%.

Our strategy

Accelerate 2030 is the new ambitious strategy for Lloyds Banking Group. It builds on the Group’s core foundations, distinctive competitive strengths and the significant progress over the last five years. 

The strategy aligns with our purpose of Helping Britain Prosper and our customer promise of ‘making finance simpler, smarter and more connected for every moment that matters’.

The ambitious strategy accelerates our transformation through reimagined customer experiences, increased Group connectivity, and a productivity step change, enabled by pioneering technology.

Accelerate 2030 has three strategic pillars of ‘Grow the core’, ‘Innovate to deepen and diversify’ and ‘Simplify to outperform’.

The strategy will deliver long-term sustainable value creation through continued income growth, improving operating leverage, stronger and more sustainable returns, and growing capital generation.

Based on our current macroeconomic assumptions, from 2027 to 2030 the Group expects:

• Mid-single-digit net income compound annual growth rate and high-single-digit underlying other operating income compound annual growth rate.
• Cost:income ratio of less than 45% in 2030, with year-on-year reductions.
• Asset quality ratio of between 25 basis points and 30 basis points through the plan period.
• Return on tangible equity of c.20% in 2030 and greater than 18% in 2028.
• Capital generation of greater than 225 basis points in 2030.
• Pro forma CET1 ratio of c.13.0%.

Accelerate 2030