{
  "id": 17032633,
  "title": "Lloyds shares fall after high interest rates boost income",
  "url": "https://urgent.news/2026/10/29/lloyds-shares-fall-after-high-interest-rates-boost-income",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-29T07:30:16.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/lloyds-beats-profit-expectations-after-tightening-costs/"
  },
  "original_language": "en",
  "account": "Lloyds Banking Group's shares plummeted on Thursday morning as the bank surpassed profit expectations in the third quarter, buoyed by high interest rates and a decrease in its cost base. The FTSE 100 giant announced a £2.3bn pre-tax profit for the latest three months, a nearly 99% increase from the previous year. Lloyds stock fell over three percent in early trading, trading below 100p. Profit exceeded the group's internal consensus by two percent in the latest quarter after the bank reduced its operating costs. Lloyds reported £2.37bn in costs, falling short of the consensus by £28m. Its cost-to-income ratio stood at 47.2 percent, below the expected 48 percent. The bank's income rose nine percent to £5bn, aligning closely with expectations. Net interest income climbed 10 percent to £11.1bn due to higher-than-anticipated interest rates. The bank's net interest margin, a crucial profitability measure, expanded by 17 basis points to 3.21 percent. The bank's return on tangible equity (RoTE) for the period was 19.5 percent, up from 17 percent in the second quarter, surpassing the bank's full-year RoTE guidance of around 16 percent. Lloyds forecasted a rise in costs in the fourth quarter due to the UK bank levy payment and end-year investment spending phasing. The bank outlined plans for its cost reduction strategy, Accelerate 2030, aiming for around £2bn in savings by 2030. Lloyds CEO Charlie Nunn stated that the group's overall cost-to-income ratio would drop below 45 percent by 2030, a decrease from the 50 percent target set for 2026.",
  "summary": "Shares in Lloyds Banking Group tumbled on Thursday morning after the bank beat profit expectations in the third-quarter after a boost from high interest rates and a reduction in its cost base. The FTSE 100 giant reported a £2.3bn pre-tax profit for the latest three months, up nearly 99 per cent on last year’s figure. [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}