Lloyds Banking Reports Decrease in Q3 Profit but Increase in Income; Raises FY25 Underlying Net Interest Income Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2025
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Should l Buy LYG?
Source: NASDAQ.COM
Weak Profit Despite Higher Income: Lloyds Banking Group reported a 36% decline in profit before tax for Q3, totaling 1.17 billion pounds, while net income grew by 7% to 4.64 billion pounds.
Revised Outlook for Fiscal 2025: The company has adjusted its forecast for underlying net interest income to approximately 13.6 billion pounds, slightly up from the previous estimate of 13.5 billion pounds.
Strategic Progress: CEO Charlie Nunn highlighted the bank's strong financial performance and strategic advancements, including the acquisition of Schroders Personal Wealth, which bolsters confidence in future performance.
Decline in Underlying Profit: Underlying profit fell by 30% to 1.29 billion pounds compared to the previous year, reflecting challenges despite an increase in underlying net interest income to 3.45 billion pounds.
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About LYG
Lloyds Banking Group plc is a United Kingdom-based financial services company. The Company provides a range of banking and financial services that are focused primarily on retail and commercial customers. The Company operates through three segments: Retail, Commercial Banking, and Insurance, Pensions and Investments. The Retail segment offers a range of financial services products to personal customers, including current accounts, savings, mortgages, credit cards, unsecured loans, motor finance and leasing solutions. The Commercial Banking segment serves small and medium businesses, as well as corporate and institutional clients, providing lending, transactional banking, working capital management, debt financing and risk management services. The Insurance, Pensions and Investments segment offers insurance, investment and pension management products and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend and Buyback Plan: The Board recommended a final ordinary dividend of 2.43p per share, totaling 3.65p for 2025, a 15% increase, while announcing a share buyback program of up to £1.75 billion, showcasing strong capital position.
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