Key facts
- Lloyds Banking Group's pre-tax profits reached £2.3 billion in the third quarter of 2026.
- Shell's adjusted earnings for the third quarter of 2026 were $10.8 billion.
- The UK banking surcharge was increased to 6% for 15 months.
- Lloyds' profits nearly doubled year-on-year due to higher interest rates.
- Shell's profits increased due to higher margins, gas prices, and greater gas production.
Lloyds Banking Group, the UK's largest mortgage lender, reported a near doubling of its third-quarter pre-tax profits to £2.3 billion, driven by higher interest rates. The gap between interest earned and paid out grew to £11 billion. In response to the profitability of UK banks, Chancellor John Healey announced a 15-month increase in the banking surcharge to 6%. Meanwhile, oil giant Shell also announced a significant profit increase, with adjusted earnings reaching $10.8 billion in the third quarter, up from $5.4 billion a year earlier. Shell attributed its gains to higher margins, increased gas prices, and greater gas production, exacerbated by supply bottlenecks and damage to infrastructure following Iran's effective closure of the Strait of Hormuz.