Lloyds saw earnings plunge 36 per cent over the last quarter after the lender ramped-up cash set aside for payouts related to the car finance commissions scandal.
The group, which last week lifted car finance provisions by £800million to £2billion, reported a pre-tax profit of £1.2billion in the three months to the end of September.
This was more than a third lower than the £1.8billion made over the same period last year, but still came in above the £1billion that most analysts had been expecting.
Lloyds said its lending has grown over 2025, including mortgages, credit cards and motor finance, while more cash also flowed into current accounts and savings balances.
Boss Charlie Nunn said the lender had demonstrated ‘robust financial performance alongside strategic progress’, citing Lloyds recent acquisition of Schroders Personal Wealth.
He added: ‘Strong capital generation was supported by income growth, cost discipline and strong asset quality in the first nine months of 2025, despite the impact of the additional motor finance charge in the third quarter.
Chief executive Charlie Nunn cheers ‘robust financial performance alongside strategic progress’
‘Our strategic progress combined with this financial performance gives us confidence in our performance for the year and our 2026 guidance.’
Shore Capital analyst Gary Greenwood noted Lloyds latest trading update would have reflected a guidance upgrade if it were not for the impact of motor finance provisions.
He said: ‘Overall, this suggests a modest upgrade to consensus after taking account of the additional £800million motor finance charge (not all analysts, including us, had formally put this through) although this will also impact on share count as buyback expectations will need to be reduced thus tempering the impact on subsequent years’ [earnings per share] estimates.’
Lloyds was among a handful of UK banks affected by problems linked to an outage Amazon Web Services earlier this week, with many customers reporting issues accessing their online services.
Lloyds shares were down 0.4 per cent at 84.12p in early trading. They are still up by more than 50 per cent since the start of the year.
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