Lloyds Banking Group Posts Rise in Profit on Loan Growth

By Elena Vardon

Lloyds Banking Group said its profit rose on continued loan growth and support from its structural hedge.

The U.K.'s largest mortgage provider on Wednesday posted 2.025 billion pounds ($2.74 billion) in pretax profit for the first quarter, beating a 1.84 billion-pound estimate taken from a company-compiled consensus.

Net income--its top-line metric--came in 9% higher at 4.785 billion pounds, just below consensus of 4.80 billion pounds. Net interest income--what banks earn on loans minus what they pay out on deposits--grew 8% to make up 3.57 billion pounds of the total, roughly in line with expectations.

Lloyds, like its peers, has structural hedges in place to mitigate the impact of interest-rate moves by the Bank of England, allowing it to continue to benefit from tailwinds even as rates are lower. Its banking net interest margin for the quarter landed at 3.17%, marking an improvement from 3.10% the previous quarter.

The group has also been pushing to diversify its revenue streams and reported growth in other income thanks to customer activity and the benefit of strategic initiatives.

"We are confident in our delivery for the year ahead and reiterate our guidance for 2026," Chief Executive Charlie Nunn said. Lloyds is set to outline a new midterm plan at the end of July.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

April 29, 2026 02:38 ET (06:38 GMT)