# Lloyds earnings slide by 36% after motor finance hit

By Russ Mould — 2025-10-23

Russ Mould, investment director at AJ Bell, said: “The car finance scandal may have sent profit into reverse but there was enough underlying good news from Lloyds to keep the share price ticking over.

“Year-to-date the stock is up more than 50 per cent despite taking extra provisions to cover this issue.

“Given the company had already disclosed an extra £800 million hit linked to mis-selling, there was nothing new to shock investors. In fact, pre-tax profit was better than feared.

“In the background, the business is making progress with the plan instituted by CEO Charlie Nunn in 2022 to generate a greater proportion of income which is not closely linked to interest rates.

“The goal is to make earnings more reliable and less cyclical. Among the key tenets of this strategy is an expanding presence in wealth management.

“To this end, Lloyds recently assumed full control of its Schroders Personal Wealth joint venture which is set to be rebranded as Lloyds Wealth.

“With Barclays and Lloyds both offering fairly robust third-quarter updates, the UK banks’ reporting season so far seems to have helped salve concern about the US private credit situation which rocked the industry earlier this month.”

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