Lloyds Q3 profits plunge 36% on car finance scandal costs
By Frank Prenesti
Date: Thursday 23 Oct 2025
(Sharecast News) - Lloyds Bank on Thursday reported a 36% fall in third quarter profit after taking an extra £800m hit from the motor finance scandal.
Pre-tax profit for the three months to September 30 came in at £1.17bn, beating consensus estimates of £1.04bn. Lloyds said its "best estimate" of potential payout over the mis-selling of financing would be almost £2bn.
Underlying net interest income rose 7% to £3.4bn, with the net interest margin - the difference between savings and loan rates - up 11 basis points year on year to 3.06% for the quarter.
Lloyds lifted guidance for full-year net interest income slightly to £13.6bn from £13.5bn.
Return on tangible equity, a key metric, was forecast at 12% due to the impact of motor finance redress or 14% without the provision and against previous guidance of 13.5%.
Reporting by Frank Prenesti for Sharecast.com
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