Business · Companies · 2 hrs ago
Lloyds profit nearly doubles as it urges temporary bank tax
Lloyds Banking Group reported £2.3 billion in pre-tax profit for the third quarter, almost double its total a year earlier.
The UK lender said higher interest income helped lift earnings, with underlying net interest income up 10% from the same period last year.
Last year's profit was reduced by an £800 million provision for costs linked to a motor finance compensation scheme, which is on hold during legal challenges.
Chancellor John Healey announced a temporary extra 3% bank tax surcharge, due to start in January, to help fund support for household energy bills.
The change is expected to raise £1.5 billion for the Treasury over 15 months.
Lloyds urged Healey not to extend the surcharge, saying Britain needs a stable and predictable tax regime.
Lloyds Banking Group reported a pre-tax profit of £2.3 billion for the third quarter, almost double its £1.2 billion profit in the same period a year earlier.
Higher interest rates helped boost the group’s income during the quarter.
Underlying net interest income rose 10% year on year.
The prior-year profit was affected by an extra £800 million provision for costs related to the UK motor finance scheme.
The results came a day after Chancellor John Healey announced a temporary increase in the bank corporation tax surcharge.
- Who
- Lloyds Banking Group, which includes the Lloyds and Bank of Scotland brands.
- What
- The group reported a third-quarter pre-tax profit of £2.3 billion, almost double its profit in the same period a year earlier.
- When
- The third quarter; the results were published on 29 October 2026.
- Where
- The United Kingdom.
- Why
- Higher interest rates helped Lloyds generate more income.
This story does not have two clearly opposing sides.
Lloyds made £1.2 billion in pre-tax profit, a figure affected by an extra £800 million provision for motor finance scheme costs.
Chancellor John Healey announced a temporary increase in the bank corporation tax surcharge.
Lloyds reported third-quarter pre-tax profit of £2.3 billion.
- Third-quarter pre-tax profit
- £2.3 billion
- Profit in same period a year earlier
- £1.2 billion
- Underlying net interest income
- Up 10% year on year
- Motor finance provision
- £800 million
- Temporary surcharge increase
- 3% extra on the bank corporation tax surcharge, from January
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What people are saying
a bit more of our banks to support ordinary people