# Lloyds earnings slide by 36% after motor finance hit

By Matt Britzman — 2025-10-23

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “This was a solid set of results, though the headline profit drop grabs attention after Lloyds took an extra £800 million provision for the motor finance issue – something well flagged ahead of today.

“Investors will look through the noise: underlying profits were comfortably ahead of consensus thanks to lower impairments, resilient borrowers, and improving fundamentals.

“With the total motor finance provision now at £2bn, it feels like a low-risk event moving forward and we’re getting closer to drawing a line under this saga, which should clear the way for Lloyds’ strong capital position and income growth to take centre stage.”

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