The FTSE 100 lender also reported a 42% rise in profits to £6.6bn in the first nine months to September 30, while its net income increased 9% to £14.8bn.

It was driven by higher total income and a reduced remediation charge. Underlying net interest income rose 10% to £11.1bn, with a net interest margin of 3.21%, and underlying other income increased 10% to £5bn.

The group maintained its 2026 guidance, expecting underlying net interest income above £14.9bn and a cost:income ratio below 50%.

The group reported the jump and confirmed it will meet its financial targets this year, despite facing a higher banking surcharge after Chancellor of the Exchequer John Healey announced in his maiden Budget.

Banks will have to pay an additional 3% on top of the 3% surcharge they are currently paying on profits above £100m taking the combined total to 31% from 28%. The temporary measure will begin in January and run for 15 months.

Chief executive Charlie Nunn, said: “The troup is delivering sustained strength in financial performance, with continued income growth, improving operating leverage and strong and stable credit performance.

“Our differentiated business model is performing well and we are on track to meet our 2026 guidance. We are maintaining strategic delivery as we continue to focus on supporting UK households and businesses.

“As we near completion of our current strategic chapter, we are excited to begin executing on our new strategy, Accelerate 2030. This will ensure we can deliver continued, sustainable value for our customers and shareholders.”

Nick Sherrard, managing director of Label Sessions, said: “Lloyds’ income is growing, costs are tightly controlled, credit quality remains stable, and capital generation is strong.

“Those are all signs that the transformation of the past five years has largely delivered what it set out to achieve and the bank is, to all intents and purposes, running efficiently and in line with guidance.

“The more interesting question right now is what Lloyds does with that solid foundation. As it prepares to launch its next chapter, investors will be looking beyond efficiency metrics and asking what the bank is going to do to drive its next phase of growth.

“With a large customer base, a growing wealth proposition, and the addition of the likes of Curve, Lloyds has assembled many of the building blocks needed to become a financial platform rather than simply a bank.

“The big opportunity is to help customers manage their entire financial lives, not just the products they hold with Lloyds – in doing so, carving out a truly differentiated proposition from its peers.”