Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Debt Investor Presentation (May 2025)
24 slides from Lloyds Banking's debt investor presentation, May 1, 2025
Slide 1: Q1 2025 Results Fixed Income Presentation
2024 Results Lloyds Banking Group 20th February 2025 Q1 2025 Results Fixed Income Presentation Lloyds Banking Group 1 May 2025 1
Slide 2: Leading UK digital bank and integrated financial services provider
Leading UK digital bank and integrated financial services provider Lloyds Banking Group Retail Commercial Insurance, Pensions & Business & Corporate & Investments Consumer Consumer Commercial Institutional Relationships Lending Banking Banking • Current accounts • Mortgages • Business loans • Lendin
Slide 3: Confident in our outlook
Confident in our outlook Purpose Purpose driven strategy delivering for customers and wider stakeholders Helping Sustained strength in financial performance Britain Prosper Confident in 2025 and 2026 guidance Lloyds Banking Group 33
Slide 4: Financial Update
Financial Update
Slide 5: Sustained strength in financial performance
Sustained strength in financial performance Financial performance (£m) Q1 Q4 QoQ Q1 YoY 2025 2024 % 2024 % Net interest income 3,294 3,276 1 3,184 3 Other income 1,452 1,433 1 1,340 8 • Statutory PAT £1.1bn; RoTE 12.6% Operating lease depreciation (355) (331) (7) (283) (25) Net income 4,391 4,378 -
Slide 6: Strong growth in lending and deposits
Strong growth in lending and deposits Q1 lending change (£bn) Q1 deposit change (£bn) Retail Commercial Retail Commercial +£7.0bn/+2% +£0.3bn/0% +£2.7bn/+1% +£2.3bn/+1% • Lending £466.2bn, up £7.1bn or 2% in Q1; up 4% YoY o Mortgages up £4.8bn QoQ, with significant demand ahead of stamp duty change
Slide 7: Continued NII growth
Continued NII growth Net interest income and banking net interest margin (£bn, bps) £3.28bn £3.29bn 10 1 (2) 303 297 (3) • NII £3.3bn, up 1% QoQ and 3% YoY o NIM 303bps, up 6bps QoQ, with strong hedge tailwind Q4 2024 Deposits Structural hedge Mortgages Funding, capital & Q1 2025 more than offsettin
Slide 8: Broad based momentum in OOI
Broad based momentum in OOI Other Income (£m) +8% YoY +7.5% 2-year CAGR 1,340 1,394 1,430 1,433 1,452 • Other income £1.5bn, up 8% YoY; broad based momentum 1,257 1,281 1,299 1,286 o Strength YoY in Motor and General Insurance and QoQ in CIB Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4
Slide 9: Costs tracking as planned
Costs tracking as planned Operating costs (£bn) +6% (+3% excl. severance) 161 50 60 2,550 2,402 (123) • Operating costs £2.6bn, up 6% or 3% excl. severance Q1 2024 Cost savings Pay & inflation Investment, Other Q1 2025 o Severance front-loaded (up c.£80m YoY) as planned depreciation & strategic opex
Slide 10: Resilient asset quality
Resilient asset quality Impairment (£m) Q1 Q4 QoQ Q1 YoY 2025 2024 £m 2024 £m Charge (credit) pre updated MES1 274 230 44 249 25 Retail 204 197 7 303 (99) Commercial Banking 71 32 39 (49) 120 • Resilient asset quality, reflecting prudent lending and Other (1) 1 (2) (5) 4 healthy customer behaviours
Slide 11: Confident in our outlook
Confident in our outlook Purpose driven strategy delivering for customers and wider stakeholders Sustained strength in financial performance Confident in 2025 and 2026 guidance: Purpose 2025 2026 Helping Net interest income c.£13.5bn Britain Operating costs Asset quality c.£9.7bn c.25bps <50% CIR Pr
Slide 12: Capital, Funding & Liquidity
Capital, Funding & Liquidity
Slide 13: Prudent Capital Ratios
Prudent Capital Ratios 13.5% CET1 remains ahead of 10.3% MDA1 and current target UK leverage ratio above requirement of 4.45% of c.13.0% UK Leverage Reg c.105bps c.320bps Requirement 1.7% 4.45% MDA 10.3%2 0.6% 1.8% 0.6% OSII Group leverage 2.5% ratio add-on 5.5% 13.5% CCYB 1.5% CCLB CCB 3.25% Pillar
Slide 14: Strong underlying capital generation
Strong underlying capital generation Risk weighted assets (£bn) 3.4 3.8 - (0.8) 230.1 (0.9) 224.6 • RWAs £230.1bn, up £5.5bn o Strong lending growth plus c.£2.5bn temporary RWA increase which is expected to reverse by end Q3 Q4 2024 Underlying Credit / CRD IV1 Market risk Optimisation Q1 2025 lendin
Slide 15: Diversified deposit base and robust liquidity portfolio
Diversified deposit base and robust liquidity portfolio Deposits have steadily increased since 2019 driven primarily Liquidity ratios remain comfortably above requirements by Retail growth and remain stable (£bn) 476 475 472 482 488 451 168 164 163 163 165 170 112 114 103 101 103 145% 97 128% 100% 1
Slide 16: 2025 Wholesale Issuance
2025 Wholesale Issuance 2025 Completed YTD 2025 Guidance Mar’25: €1.75bn Dual Tranche Green • Refinancing maturities across core and non- HoldCo core currencies ~£1.4bn up to £4bn Senior • Support the Group’s balance sheet growth • Ongoing refinancing to c.2.0% AT1 target and Feb’25: £750m AT1 c.2.5
Slide 17: Strong ratings reaffirmed across the Group
Strong ratings reaffirmed across the Group Ring-fenced Non-ring- Lloyds Banking Group bank fenced bank ESG Ratings1,3 Lloyds Bank, Credit Ratings1 UK Sovereign LBG HoldCo2 LBG Tier 2 LBG AT1 LBCM BoS S&P CSA 61 BBB+ A+ A AA BBB- BB- 55 S&P Stable Stable Stable Stable Stable Stable 52 A-2 A-1 A-1 202
Slide 18: Appendix
Appendix
Slide 19: Simple group structure with multiple issuance points
Simple group structure with multiple issuance points HoldCo Lloyds Banking Group BBB+ / A3 / A+1 A-2 / P-2 / F1 Sta / Sta / Sta Senior Unsecured - Capital Ring-fenced Sub-Group Non-Ring-fenced Sub-Group Insurance Sub-Group Equity Investments Sub-Group Lloyds Bank, Bank of Lloyds Bank Corporate Scott
Slide 20: Diverse funding portfolio as at Q1 25
Diverse funding portfolio as at Q1 25 Wholesale funding portfolio by type Wholesale funding portfolio by currency 7% 13% 22% MM Funding Covered Bond 21% 25% GBP USD EUR Other £89bn Securitisation OpCo Senior £89bn 34% 11% HoldCo Senior Sub Debt 14% 47% 6% Wholesale funding portfolio by maturity Whol
Slide 21: Quarterly P&L and key ratios
Quarterly P&L and key ratios (£m) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Net interest income 3,294 3,276 3,231 3,154 3,184 3,317 3,444 3,469 3,535 Other income 1,452 1,433 1,430 1,394 1,340 1,286 1,299 1,281 1,257 Operating lease depreciation (355) (331) (315) (396)
Slide 22: Updated economics scenarios
Updated economics scenarios Scenario ECL (£m) Measure (%) 2025 2026 2027 2028 2029 Ave. 25-29 GDP 1.3 2.2 1.6 1.5 1.4 1.6 Unemployment rate 4.1 3.2 3.1 3.1 3.2 3.3 HPI growth 2.9 5.9 6.8 5.4 4.3 5.1 Upside (30%) 2,869 CRE price growth 6.1 5.7 2.6 1.0 0.4 3.2 UK Bank Rate 4.43 4.72 4.86 5.06 5.20 4.8
Slide 23: Contacts
Contacts Group Investor Relations Group Corporate Treasury Richard Shrimpton Douglas Radcliffe Group Investor Relations Director Deputy Treasurer & Treasury Markets Director +44 (0)20 7356 1571 Richard.Shrimpton@lloydsbanking.com Douglas.Radcliffe@lloydsbanking.com Niamh O’Connor Nora Thoden Directo
Slide 24: Disclaimer
Disclaimer Important notice The information, statements, views and opinions contained in this document and accompanying discussion (“this Presentation”) are for informational and reference purposes only. This Presentation has been provided by the Group (defined below). This Presentation does not pur
Lloyds Banking Group — Debt Investor Presentation (May 2025) on 6ix