Lloyds Banking Group plc Q1 2026 Interim Management Statement
Lloyds Banking Group plc reported a strong first quarter for 2026, with statutory profit before tax reaching Β£2.0 billion, a 33% increase year-on-year. This growth was driven by higher total income, controlled costs, and benign impairments. Underlying profit was Β£2.0 billion, up 31% from the previous year. Total income rose by 9% to Β£5.18 billion, primarily due to an 8% increase in underlying net interest income to Β£3.6 billion, supported by a higher net interest margin of 3.17%. Underlying other income also grew by 11% to Β£1.6 billion, driven by increased customer activity and strategic initiatives. Operating costs decreased by 3% to Β£2.5 billion, contributing to an improved cost:income ratio of 51.9%. The underlying impairment charge was Β£295 million, resulting in an asset quality ratio of 25 basis points. The Group reiterated its 2026 guidance, expecting underlying net interest income to exceed Β£14.9 billion, a cost:income ratio below 50%, and a return on tangible equity greater than 16%. The CET1 ratio stood at 13.4% as of March 31, 2026.