When an aircraft banks, its lift vector tilts. If total lift were left unchanged, its vertical component would become smaller than the aircraft’s weight and the aircraft would descend.
In a steady, coordinated and level turn:
$L \cos \phi = W$
Therefore:
$L = \frac{W}{\cos \phi}$
where:
- $L$ is total lift,
- $W$ is weight,
- $\phi$ is the bank angle.
Total lift must therefore be greater than weight. At a given airspeed, the pilot increases the angle of attack to generate the additional lift required to keep the vertical component equal to the weight.
The higher lift coefficient and load factor increase induced drag, so additional thrust is normally required to prevent the airspeed from decreasing.
The load factor in a coordinated level turn is:
$n = \frac{1}{\cos \phi}$
This is also why stall speed increases as the bank angle increases during a level turn.

Vectors are shown for explanation and are not necessarily to scale.
Reference: FAA Airplane Flying Handbook — turns and load factor.