Lloyds Banking Group shares fell 3% to 100.8p after the UK high street lender reported figures that missed analyst forecasts on revenue, capital and tangible net assets.
Jonathan Pierce, analyst at broker Jefferies, called the results "a spattering of small misses", although underlying profit before remediation costs was in line with consensus.
Revenue was 1% short of forecasts, and the net interest margin was 1 basis point below expectations.
Risk-weighted assets of £247.4 billion were nearly 2% above consensus, leaving the common equity tier 1 ratio, a measure of financial strength, 10 basis points light at 13.3%.
Pierce said the "modestly above" wording on net interest income looked cautious against a consensus figure of £15.03 billion, and that the numbers might cast some doubt on 2027 estimates.
Jefferies kept its 'buy' rating and 127p price target.
Statutory pre-tax profit rose 42% to £6.6 billion for the first nine months of 2026, up from £4.7 billion a year earlier.
The jump reflects a much smaller remediation charge of £61 million, compared with £912 million last year, when it included £800 million for motor finance commission arrangements.
Underlying net interest income, the gap between what the bank earns on lending and pays on deposits, rose 10% to £11.1 billion.
The banking net interest margin widened to 3.21% from 3.04%, helped by the structural hedge, which reinvests maturing long-term positions at higher interest rates.
Underlying other income grew 10% to £5.0 billion, helped by the addition of Lloyds Wealth.
Return on tangible equity, a measure of profitability, reached 17.9%, against 11.9% a year earlier.
Guidance maintained
Lloyds kept its 2026 guidance, saying net interest income should come in modestly above its £14.9 billion target.
It also expects a cost-to-income ratio below 50% and return on tangible equity above 16%.
Charlie Nunn, chief executive, said the group was on track and preparing to launch a new strategy, Accelerate 2030.
Costs and risks
Impairment charges, money set aside for loans that may go bad, rose to £930 million from £618 million.
Tangible net assets per share fell 1.6 pence to 55.4 pence, about 2% below consensus, because of the cash flow hedge reserve.
Lloyds booked no new motor finance charges, but the Financial Conduct Authority's redress scheme has been delayed, with an Upper Tribunal hearing on four challenges due in February 2027.
