Slide 1: Q1 2026 Interim Management Statement
Q1 2026 Interim Management Statement Lloyds Banking Group 29 April 2026
Slide 2: Building business momentum with higher, sustainable returns
Building business momentum with higher, sustainable returns Purpose Helping Focused strategic execution in final year of current plan Britain Sustained strength in financial performance with resilient business model Prosper Reiterating guidance for 2026; strategic update at half year Lloyds Banking
Slide 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: Strong return on tangible equity
Strong return on tangible equity Statutory profit (£m) Q1 Q4 QoQ Q1 YoY 2026 2025 % 2025 % Underlying profit 2,005 1,926 4 1,532 31 Restructuring (18) (30) 40 (4) • Q1 RoTE 17.0% Volatility and other items 38 87 (56) (11) Statutory profit before tax 2,025 1,983 2 1,517 33 • Q1 restructuring charge £
Slide 11: Strong capital generation
Strong capital generation Risk weighted assets (£bn) 0.2 1.0 4.8 (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 12: Helping Britain Prosper
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 13: Q&A
Q&A
Slide 14: Appendix
Appendix
Slide 15: 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 16: 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 17: Investor Relations contacts
Investor Relations contacts Douglas Radcliffe Rohith Chandra-Rajan Group Investor Relations Director Director, Investor Relations Douglas.Radcliffe@lloydsbanking.com Rohith.Chandra-Rajan@lloydsbanking.com Nora Thoden Tom Grantham Director, Investor Relations – ESG Senior Manager, Investor Relations
Slide 18: 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