Slide 1: Q1 2026 Results
Q1 2026 Results Fixed Income Presentation Lloyds Banking Group 29 April 2026
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: Financial update
Financial update
Slide 4: Sustained strength in financial performance
Sustained strength in financial performance Financial performance1 (£m) Q1 Q4 QoQ Q1 YoY 2026 2025 % 2025 % Net interest income 3,569 3,529 1 3,294 8 Other income 1,605 1,594 1 1,452 11 • Statutory PAT £1.6bn; RoTE 17.0% Operating lease depreciation (389) (379) (3) (355) (10) • Net income growth: £4
Slide 5: Lending growth with discipline in deposits
Lending growth with discipline in deposits Q1 lending change (£bn) Q1 deposit change (£bn) Retail Commercial Retail Commercial +£3.5bn/+1% +£2.8bn/+3% -£3.1bn/-1% +£2.3bn/+1% • Lending £486.2bn, up £5.1bn or 1% in Q1 with growth across all business lines; up 4% YoY 1.6 0.4 o Mortgages up £1.6bn QoQ
Slide 6: Growth in net interest income
Growth in net interest income Average interest earning assets (£bn) 0.5 • NII £3.6bn, up 1% QoQ and 8% YoY 0.9 0.2 1.6 473.5 o Hedge and lending growth partially offset by competitive mortgage market 470.3 • AIEAs £473.5bn, up 1% QoQ and 4% YoY, driven by strong lending growth Q4 2025 Mortgages Unse
Slide 7: Momentum in other income
Momentum in other income Other income (£m) +11% YoY +9% 2-year CAGR • OOI £1.6bn in Q1, up 11% YoY and 1% QoQ 1,557 1,594 1,605 1,517 1,340 1,394 1,430 1,433 1,452 o Broad based other income momentum o Continued strength in Transport & Equity Investments Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 20
Slide 8: Discipline on costs
Discipline on costs Operating costs (£m) -3% YoY • Operating costs £2.5bn in Q1, down 3% YoY 102 148 2,550 o Reflects continued efficiency savings as well as lower (122) (204) 2,474 severance charge vs Q1 2025 • Remediation charge £11m • No change to Motor Finance provision following Q1 2025 Cost sa
Slide 9: Strong and stable credit performance
Strong and stable credit performance Impairment (£m) Q1 Q4 QoQ Q1 YoY 2026 2025 £m 2025 £m Charge (credit) pre updated MES1 194 130 64 274 (80) Retail 224 107 117 204 20 Commercial Banking (30) 22 (52) 71 (101) • Strong and stable credit performance reflecting prudent Other - 1 (1) (1) 1 lending and
Slide 10: Updated macroeconomic outlook
Updated macroeconomic outlook CPI inflation UK Bank Rate 5% 6% 4% 5% 4% • More cautious economic outlook reflecting consequences 3% 3% of the Middle East conflict 2% 2% o Inflation 3.4% in 2026 (was 2.6%) 1% 1% o No rate cuts in 2026 (was two) 0% 0% Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2
Slide 11: Sustained strength in performance
Sustained strength in performance 2026 guidance Net interest income UPDATED: >£14.9bn (from c.£14.9bn) Cost:income <50% CIR (Operating costs <£9.9bn) Asset quality ratio c.25bps Purpose RoTE >16% Helping Capital generation >200bps Britain CET1 ratio target Capital distribution Pay down to c.13.0% Pr
Slide 12: Capital, Funding & Liquidity
Capital, Funding & Liquidity
Slide 13: Prudent capital ratios
Prudent capital ratios 13.4% CET1 following 41bps of capital generation UK leverage ratio not binding for LBG with significant headroom above requirement UK Leverage Reg c.65bps c.320bps Requirement 1.6% 4.45% 0.6% MDA 10.2%1 1.8% Group leverage 0.6% OSII ratio add-on 2.5% CCYB 13.4% CCLB 5.1% 1.4%
Slide 14: Strong capital generation
Strong capital generation Risk weighted assets (£bn) 1.0 4.8 0.2 (0.7) 240.8 235.5 • RWAs £240.8bn, up £5.3bn in Q1 o Reflects strong customer lending in quarter Q4 2025 Underlying lending Credit / calibrations Other movements Optimisation Q1 2026 o Limited planned RWA optimisation in quarter Common
Slide 15: Diversified deposit base and robust liquidity portfolio
Diversified deposit base and robust liquidity portfolio Stable Retail and Commercial deposit base (£bn)1 Liquidity ratios remain comfortably above requirements 471 483 496 496 163 171 173 163 103 101 103 103 144% 123% 100% 206 218 223 219 3 4 2023 2024 2025 Q126 Regulatory Requirement Q126 NSFR Rati
Slide 16: 2026 Wholesale Issuance
2026 Wholesale Issuance 2026 Completed YTD Issuance detail Feb €750m 11NC10 • Refinancing maturities across core and non-core currencies Feb €750m 4NC3 G HoldCo £3.3bn • Support the Group’s balance sheet growth Senior Guidance: up to £7bn Feb $500m 4NC3 Feb $1.25bn 4NC3 • Continued commitment to sus
Slide 17: Ratings improvements reflect strong fundamentals
Ratings improvements reflect strong fundamentals Ring-fenced Non-ring- Lloyds Banking Group bank fenced bank Lloyds Bank, Credit Ratings1 UK Sovereign LBG HoldCo2 LBG Tier 2 LBG AT1 LBCM ESG Ratings1,3 BoS S&P HoldCo Senior, Tier 2 and AT1 ratings upgraded in 2025 S&P CSA A- A+ A AA BBB+ BBB- S&P St
Slide 18: Appendix
Appendix
Slide 19: Significant capital headroom when operating to c.13.0% target
Significant capital headroom when operating to c.13.0% target CET1 resources at c.13.0% target (£bn) 31.3 30.6 • Capital strength, risk profile and regulatory clarity 29.2 underpins c.13.0% target by end-2026 28.5 27.6 27.4 o Track record of sustainable capital growth, and expect 26.4 capital genera
Slide 20: Active capital & risk management
Active capital & risk management 2025 risk transfer transactions • The Group engages in risk transfer transactions for capital and risk management purposes amongst other methods for balance Synthetic SRT Securitised Sale sheet optimisation • Investors provide credit protection on • Assets are fully
Slide 21: Simple group structure with multiple issuance points
Simple group structure with multiple issuance points HoldCo Lloyds Banking Group A-/ 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 Scottish
Slide 22: Diverse funding portfolio as at Q1 26
Diverse funding portfolio as at Q1261 Wholesale funding portfolio by type Wholesale funding portfolio by currency 9% 5% MM Funding Covered Bond 23% 34% 24% 31% Securitisation OpCo Senior £114bn GBP USD EUR Other £114bn 10% HoldCo Senior Sub Debt 10% 6% 48% Wholesale funding portfolio by maturity Who
Slide 23: Quarterly P&L and key ratios
Quarterly P&L and key ratios (£m) Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Net interest income 3,569 3,529 3,451 3,361 3,294 3,276 3,231 3,154 Other income 1,605 1,594 1,557 1,517 1,452 1,433 1,430 1,394 Operating lease depreciation (389) (379) (365) (355) (355) (331) (315) (3
Slide 24: Updated economic scenarios
Updated economic scenarios Scenario ECL1 (£m) Measure (%) 2026 2027 2028 2029 2030 Ave. 26-30 GDP growth 1.1 2.4 1.7 1.6 1.6 1.7 Unemployment rate 4.7 3.6 3.2 3.1 3.2 3.6 HPI growth 2.2 5.9 7.3 6.8 5.8 5.6 Upside (30%) 2,588 CRE price growth 5.6 5.6 3.2 1.7 0.3 3.2 UK Bank Rate 4.04 4.97 5.26 5.50 5
Slide 25: Contacts
Contacts Debt Investor Relations Group Investor Relations Sergio Afonso Douglas Radcliffe Group Capital Director & Deputy Treasurer Group Investor Relations Director Sergio.Afonso2@lloydsbanking.com Douglas.Radcliffe@lloydsbanking.com Kris Middleton Nora Thoden Head of Term Issuance & Capital Struct
Slide 26: 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