Lloyds Banking Group reported a 42% rise in statutory pre-tax profit to £6.6bn for the first nine months of 2026, up from £4.7bn a year earlier.

The results come a day after the Budget confirmed that so-called “bank tax” will double from 3% to 6% for 15 months from January.

Underlying net interest income – or the difference between what the bank makes on loans and what it pays on deposits – rose by 10% year on year to £11.1bn over the nine-month period.

The bank’s total mortgage balance sheet increased by 1% to £325.2bn at the end of September, from £323.1bn at the end of 2025, despite a £1.8bn securitisation in April.

Interactive investor head of markets Richard Hunter says: “With provisions for the motor finance investigation all but buried and with higher income flowing through, Lloyds has enjoyed a bumper quarter which puts the bank in prime position to meet its full-year targets.

“Some of the clouds which have been overhanging the sector leading up to the Budget, and the domestic banks in particular, have now partially parted.

“The increase to the bank surcharge was less than feared, manageable and temporary and led to a small relief rally in Lloyds’ shares yesterday.

“Other concerns also remain on the back burner, with the level of defaults and arrears low and stable, although in typically conservative fashion Lloyds has increased impairment provisions for the quarter to £313m, or £930m in the year to date.”