Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Debt Investor Presentation (July 2025)
28 slides from Lloyds Banking's debt investor presentation, Jul 24, 2025
Slide 1: 2025 Half Year Results Fixed Income Presentation
2024 Results Lloyds Banking Group 20th February 2025 2025 Half Year Results Fixed Income Presentation Lloyds Banking Group 24 July 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: Financial update
Financial update
Slide 4: Sustained strength in financial performance
Sustained strength in financial performance Financial performance (£m) H1 H1 YoY Q2 Q1 QoQ 2025 2024 % 2025 2025 % Net interest income 6,655 6,338 5 3,361 3,294 2 Other income 2,969 2,734 9 1,517 1,452 4 Operating lease depreciation (710) (679) (5) (355) (355) - • Statutory PAT of £2.5bn in H1; RoTE
Slide 5: Strong growth in lending and deposits
Strong growth in lending and deposits Q2 lending change (£bn) Q2 deposit change (£bn) Retail Commercial Retail Commercial +£3.1bn/+1% +£0.9bn/+1% +£1.0bn/0% +£5.3bn/+3% • Lending £471.0bn, up £4.8bn or 1% in Q2; up 3% YTD o Mortgages up £0.8bn QoQ, with growth impacted by stamp duty pull forward to
Slide 6: Continued growth in net interest income
Continued growth in net interest income Net interest income and banking net interest margin (£bn, bps) £3.29bn £3.36bn 7 - (3) 303 304 (3) • H1 NII £6.7bn, up 5% YoY, Q2 up 2% QoQ • H1 NIM 304bps; Q2 NIM 304bps up 1bp QoQ Q1 2025 Deposits Structural hedge Mortgages Funding, capital & other Q2 2025 o
Slide 7: Significant growth in Mortgages
Significant growth in Mortgages Mortgage book (Book size £bn, Gross margin %1) 1.02% 0.93% 0.89% 307 312 318 YTD 9 8 11 16 (4)% 16 20 11 10 10 • Mortgage balances £317.9bn, up £5.6bn in H1, with healthy demand 128 126 o YTD flow market share c.19% 125 o Q2 growth of £0.8bn impacted by pull forward o
Slide 8: Good performance in consumer and commercial lending
Good performance in consumer and commercial lending Cards, Loans & Motor (Book size £bn, Gross margin %1) H1 2025 16 10 8 8 42 5.61% H2 2024 16 9 8 7 40 5.56% • Deepening consumer relationships by leveraging data, H1 2024 16 8 8 8 40 5.50% enhanced decisioning and personalised experiences o 25% YoY
Slide 9: Growing customer deposit franchise
Growing customer deposit franchise Customer deposits (Book size £bn, Gross margin %1) 1.13% 1.19% 1.29% 494 YTD 475 483 101 (1)% 102 101 • Total deposits of £493.9bn up £11.2bn or 2% in H1 • Retail deposits up £3.7bn or 1% in H1 208 213 2% 202 o Retail current accounts down £0.7bn, impacted by tax y
Slide 10: Strengthening tailwind from the structural hedge
Strengthening tailwind from the structural hedge Hedged balances1 (£bn) 242 242 244 77 77 79 Structural hedge 135 135 135 • H1 structural hedge earnings of £2.6bn 30 30 30 • Structural hedge notional £244bn, up £2bn in Q2 523 534 o Benefitting from strong deposit performance 514 • Stable c.3.5 year
Slide 11: Momentum in other income
Momentum in other income Divisional other income (£m) YoY 2,969 9% 2,863 2,734 78 • OOI £3.0bn in H1, £1.5bn in Q2; both up 9% YoY 126 689 6% • Broad based other income momentum in H1 649 643 o Retail: Motor leasing strength and current account fees o Commercial: Growth in transaction banking offset
Slide 12: Continued discipline on costs
Continued discipline on costs Operating costs (£m) +4% (2% ex severance) 144 117 147 • H1 operating costs £4.9bn, up 4% YoY or 2% ex. severance, 4,874 4,700 (234) in line with FY guidance • Q2 operating costs £2.3bn, down 9% QoQ o Severance of c.£20m after Q1 front-loading 1 H1 2024 Cost savings Pay
Slide 13: Robust asset quality
Robust asset quality Impairment (£m) H1 H1 YoY Q2 Q1 QoQ 2025 2024 £m 2025 2025 £m Charge (credit) pre updated MES1 451 425 26 177 274 (97) • Robust asset quality, reflecting prudent lending and Retail 426 463 (37) 222 204 18 healthy customer behaviours Commercial Banking 25 (28) 53 (46) 71 (117) Ot
Slide 14: Updated macroeconomic outlook
Updated macroeconomic outlook UK Bank Rate CPI inflation 6% 12% 5% 10% 4% 8% 3% 6% 2% 4% 1% 2% • Minor revisions to economic expectations vs Q1 0% 0% Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 o Now expect GDP growth of 1% in both 2025 and 2026 22 23 23 24 24 25 25 26 26 27 22 23 23
Slide 15: Capital, Funding & Liquidity
Capital, Funding & Liquidity
Slide 16: Prudent Capital Ratios
Prudent Capital Ratios 13.8%1 CET1 following strong H1 86bps capital generation UK leverage ratio not binding for LBG with significant headroom above requirement UK Leverage Reg c.95bps c.350bps Requirement 1.7% 4.45% MDA 10.3%2 0.6% 1.8% 0.6% OSII Group leverage 2.5% 13.8% ratio add-on 5.4% CCYB 1.
Slide 17: Strong capital generation
Strong capital generation Risk weighted assets (£bn) 2.3 7.2 - (0.4) (2.3) 231.4 224.6 • RWAs £231.4bn; up £6.8bn in H1, up £1.3bn in Q2 o Strong lending growth offset by continued optimisation 2024 Underlying Credit / CRD IV1 Market risk Optimisation H1 2025 o RWAs continue to include £1.2bn tempor
Slide 18: Diversified deposit base and robust liquidity portfolio
Diversified deposit base and robust liquidity portfolio Deposits have steadily increased since 2020 driven primarily Liquidity ratios remain comfortably above requirements by Retail growth (£bn)1 476 475 471 483 494 451 168 164 163 163 170 170 101 101 145% 112 114 103 127% 97 100% 184 196 197 206 21
Slide 19: 2025 wholesale issuance well progressed
2025 wholesale issuance well progressed 2025 Completed YTD Issuance detail Mar €1bn 11NC10 G €750m 3NC2 • HoldCo Senior and Capital issuance complete for 2025 and May CHF235m 6NC5 G in line with guidance HoldCo ~£4.1bn May £750m 6.5NC5.5 Senior Guidance: complete o Refinancing maturities across core
Slide 20: 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 60 BBB+ A+ A AA BBB- BB- 55 S&P Stable Stable Stable Stable Stable Stable 52 A-2 A-1 A-1 202
Slide 21: Appendix
Appendix
Slide 22: Sustainable Bonds Progress
Sustainable Bonds Progress 24th April 24 Further progress made on our commitment to being a repeat issuer in Sustainable Bond labelled format: Framework launched 25th April 24 – 2nd May 24 • £3.4bn GBP equivalent executed in green labelled format since launch Non-Deal ESG Virtual Investor of framewo
Slide 23: 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 24: Diverse funding portfolio as at H1 25
Diverse funding portfolio as at H1 25 Wholesale funding portfolio by type Wholesale funding portfolio by currency 7% 14% 25% MM Funding Covered Bond 22% 25% GBP USD EUR Other £92bn Securitisation OpCo Senior £92bn 32% 10% HoldCo Senior Sub Debt 46% 13% 6% Wholesale funding portfolio by maturity Whol
Slide 25: Quarterly P&L and key ratios
Quarterly P&L and key ratios (£m) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Net interest income 3,361 3,294 3,276 3,231 3,154 3,184 3,317 3,444 3,469 Other income 1,517 1,452 1,433 1,430 1,394 1,340 1,286 1,299 1,281 Operating lease depreciation (355) (355) (331) (315)
Slide 26: Updated economic scenarios
Updated economic scenarios Scenario ECL1 (£m) Measure (%) 2025 2026 2027 2028 2029 Ave. 25-29 GDP 1.2 2.0 1.8 1.4 1.4 1.6 Unemployment rate 4.4 3.5 3.1 3.1 3.2 3.5 HPI growth 3.6 6.5 7.9 6.2 4.8 5.8 Upside (30%) 2,721 CRE price growth 5.1 8.1 3.8 1.1 0.4 3.6 UK Bank Rate 4.21 4.5 4.84 5.05 5.21 4.76
Slide 27: Contacts
Contacts Group Corporate Treasury Group Investor Relations 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 28: 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
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