Lloyds Banking Group reported first-half 2026 statutory pre-tax profit of £4.293 billion, an increase of 23% year on year, with underlying profit rising 18% to £4.215 billion, according to the group's half-year results disclosures.
Statutory profit after tax reached £3.1 billion, up 23% on the same period of the prior year, with return on tangible equity of 17.1%.
STATUTORY AND UNDERLYING PROFIT ADVANCE
The 23% year-on-year rise in statutory pre-tax profit to £4.293 billion compared with an 18% expansion in underlying profit to £4.215 billion; the difference reflected a net gain of £112 million from volatility and other items, partly offset by £34 million of restructuring costs.
Statutory profit after tax of £3.1 billion, also up 23% year on year, tracks the pre-tax outturn closely and reflects a broadly similar effective tax rate compared with the same period of the prior year.
Lloyds describes itself as the UK's largest financial services provider, with leading market positions in products including mortgages.
STRUCTURAL HEDGE UNDERPINS EARNINGS
The group generated £3.4 billion of total income from structural hedge balances in the first half and expects this to exceed £7.0 billion for 2026; net interest income rose 9% to £7.3 billion.
Lloyds said there had been no further charges relating to motor finance commission arrangements in the half.
Alongside the results, chief executive Charlie Nunn launched a new strategy, Accelerate 2030, targeting a return on tangible equity above 18% in 2028 and around 20% in 2030 and a further £2 billion of cost savings by 2030.
Lloyds also announced a £1 billion share buyback and raised its interim dividend by 30% to 1.58p per share.