In its financial results for the period, it also reported mortgage growth of £8.7bn for the first nine months of the year.
Overall, underlying loans and advances to customers rose by £18bn or 4% in the first nine months of the year to £477.1bn, while in Q3, this was a quarterly growth of £6.1bn. Lloyds Banking Group partially attributed this performance to its UK mortgages business.
The group faced an £800m charge for motor finance commission arrangements in Q3, arising from the Financial Conduct Authority’s (FCA’s) mis-selling compensation scheme, and Lloyds Banking Group said it set aside £195bn as its estimate for the total impact.
The charge offset its 6% rise in income, which came to £13.6bn, and resulted in a 12% fall in its profit after tax to £3.3bn for the first nine months of the year.
For the Q3 period alone, Lloyds Banking Group delivered a 42% fall in profit to £778.
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Charlie Nunn, group chief executive of Lloyds Banking Group, said: “The group continues to perform well, demonstrating robust financial performance alongside strategic progress, including our recent acquisition of Schroders Personal Wealth.
“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. Our strategic progress, combined with this financial performance, gives us confidence in our performance for the year and our 2026 guidance.”
Last month, the group announced it would make an extra £4bn of lending available to selected first-time buyers.
