Lloyds Banking Group Plc Bank on Thursday reported a better-than-expected 12% jump in profit driven by higher income which offset £800m set aside to compensate customers who were mis-sold motor finance.
The lender posted pre-tax earnings of £6.7bn, beating forecasts of £6.4bn. It also lifted its performance estimates for 2026, including a return on tangible equity greater of more than 16% and underlying net interest income of £14.9bn.
The board has also announced a share buyback programme of up to £1.75bn and said it would now review excess capital distributions in addition to the ordinary dividend every half year.
Underlying net interest income rose £13.6bn, reflecting a net interest margin of 3.06%, up 11 basis points year-on-year, alongside higher average interest-earning banking assets of £462.9bn.
Remediation costs were £968, up from £899m in 2024 bringing the total provision recognised for motor finance to £1.95bn.
Reporting by Frank Prenesti for Sharecast.com