Slide 1: 2025 Results
2025 Results Lloyds Banking Group 29 January 2026
Slide 2: Business and strategic update
Business and strategic update Charlie Nunn
Slide 3: Continued strategic delivery; sustained strength in performance
Continued strategic delivery; sustained strength in performance Purpose Strategic delivery accelerating, benefitting customers and wider stakeholders Helping Sustained strength in financial performance, meeting 2025 guidance Britain Strong capital generation, enabling 15% dividend growth and £1.75bn
Slide 4: Successfully delivering for all stakeholders in 2025
Successfully delivering for all stakeholders in 2025 Clear purpose £17bn £7.5bn c.£6.5bn Lending to first time buyers New tax-free savings supported Gross new term lending to BCB driving growth through ISA propositions customers Healthy 5% 3% 15% franchise Loan growth; c.26% direct Deposit growth; g
Slide 5: Positioned for growth in a supportive operating environment
Positioned for growth in a supportive operating environment Constructive UK outlook Strategic focus on faster growing areas Resilient economic growth, with falling interest rates #1 UK mortgage lender Forecast average GDP growth of 1.4% per annum 2025-2029 Forecast two 25bps BoE rate cuts in 2026 >£
Slide 6: Strategic delivery accelerating
Strategic delivery accelerating Significant transformation since 2021… …with growing momentum over 2025 and 2026 Strategic initiative revenues Grow c.20% >30% c.£2bn Net income OOI growth1 growth1 c.£1.4bn c.£0.8bn c.£0.5bn Focus c.45% £24bn c.£0.2bn Distribution productivity Gross RWA 2022 2023 202
Slide 7: Strong growth momentum across the Group
Grow Focus Change Strong growth momentum across the Group Retail IP&I #1 PCAs, #1 Mortgages, #1 Cards, #1 Loans, #1 Motor1 #2 Workplace, #2 Home Insurance, #2 Individual Annuities Launched Lloyds Premier – c.2x higher depth of relationship Launched new IFA protection proposition Enhancing customer E
Slide 8: Strong growth momentum across the Group
Grow Focus Change Strong growth momentum across the Group Commercial Banking Equity Investments c.21% deposit share1, #1 GBP Structured Finance, #2 GBP DCM Top-5 single family housing owner2, High-returning UK PE business Delivered new and enhanced mobile journeys (lending, term deposits) Strong Llo
Slide 9: Strong OOI diversification across the Group
Grow Focus Change Strong OOI diversification across the Group Retail Commercial Banking IP&I Equity Investments c.13% CAGR since 2021 c.6% CAGR since 2021 c.11% CAGR since 20211 c.2% CAGR since 20212 Illustrative drivers Illustrative drivers Illustrative drivers Illustrative drivers Motor: Capital m
Slide 10: Enhancing cost and capital efficiency
Grow Focus Change Enhancing cost and capital efficiency Building operating leverage through productivity gains Improving capital efficiency through growth & optimisation Increase in active customers served per FY25 CIB income / average RWA, +c.2pp vs 2021 c.45% distribution FTE since 2021 >5% (2026
Slide 11: Leveraging our enablers to accelerate our transformation
Grow Focus Change Leveraging our enablers to accelerate our transformation Clear strategic priorities… …with continued strong progress c.50% reduction in number of data centres since 2021 (2026 target: >60%) Enhancing infrastructure and >20% reduction in technology applications since 2021 (Achieved
Slide 12: Extending our Gen AI leadership position
Grow Focus Change Extending our Gen AI leadership position c.50 live Gen AI use cases in 2025, generating c.£50m P&L benefit Accelerating progress in 2026 Illustrative revenue and cost use cases and outcomes across domains Driving day-to-day productivity gains Customer Use case: Gen AI powered in-ap
Slide 13: Grow, Focus, Change: Building operating leverage in 2026
Grow, Focus, Change: Building operating leverage in 2026 Net income and costs outlook (£bn) +c.£1.5bn hedge Incl. c.£0.6bn growth additional SI growth >£3bn hedge Incl. c.£1.4bn SI growth growth Incl. mortgage repricing and deposit churn Incl. mortgage Operating costs repricing and deposit churn of
Slide 14: Well positioned for 2026 and beyond
Well positioned for 2026 and beyond Reinforcing competitive advantage... ...delivering strong shareholder outcomes Continued momentum beyond 2026 2026 guidance Market leader #1 in key markets, enhancing growth as an integrated <50% Further strengthening and growing the core franchise financial servi
Slide 15: Financial update
Financial update William Chalmers 15
Slide 16: Sustained strength in financial performance
Sustained strength in financial performance Financial performance (£m) FY FY YoY Q4 vs Q3 2025 2024 % 2025 2025 % Net interest income 13,635 12,845 6 3,529 2 • Statutory PAT £4.8bn; RoTE 12.9% (14.8% excl. motor Other income 6,120 5,597 9 1,594 2 provision) Operating lease depreciation (1,454) (1,32
Slide 17: Strong lending and deposit growth
Strong lending and deposit growth Q4 lending change (£bn) Q4 deposit change (£bn) Retail Commercial Retail Commercial +£3.6bn/+1% +£0.2bn/+0% +£1.5bn/+0% -£1.5bn/-1% • Lending £481.1bn, up 5% in 2025, Q4 up £4.0bn 2.1 o Q4 Mortgages up £2.1bn, growth in Cards, Loans, Motor and European Retail 0.5 o
Slide 18: Sustained growth in net interest income
Sustained growth in net interest income Average interest earning assets (£bn) 1.8 10.0 2.7 • 2025 NII £13.6bn, up 6% YoY, Q4 up 2% (2.8) 462.9 o Strong hedge and lending growth partially offset by mortgage repricing and deposit churn headwinds 451.2 • 2025 AIEAs £462.9bn, up 3% YoY; Q4 AIEAs £470.3b
Slide 19: Growth in mortgages
Growth in mortgages Mortgage book (Book size £bn, Gross margin %1) 0.93% 0.89% 0.85% 312 318 323 YoY 8 8 9 15 (12)% 16 16 11 12 10 • Mortgage balances £323.1bn, up £10.8bn YoY, Q4 up £2.1bn 128 126 127 o 2025 flow market share c.19% o ‘Direct to bank’ market share c.26%, up 3pp YoY +5% • Completion
Slide 20: Solid performance in consumer and commercial lending
Solid performance in consumer and commercial lending Cards, Loans & Motor (Book size £bn, Gross margin %1) H2 2025 17 11 8 8 44 5.26% H1 2025 16 10 8 8 42 5.61% • Growth in consumer lending from leveraging data, enhanced decisioning and personalised experiences H2 2024 16 9 8 7 40 5.56% o Unsecured
Slide 21: Growing customer deposit franchise
Growing customer deposit franchise Customer deposits (Book size £bn, Gross margin %1) 1.19% 1.29% 1.43% YoY 483 494 496 101 103 +1% 101 • Total deposits £496.5bn, up £13.8bn / 3% in 2025 • Retail deposits up £5.5bn / 2% in 2025 208 213 213 +2% o Retail current accounts up £1.5bn / 1% in 2025 o Retai
Slide 22: Strengthening tailwind from the structural hedge
Strengthening tailwind from the structural hedge Hedged balances1 (£bn) 242 244 244 77 79 79 Structural hedge • Structural hedge notional £244bn, stable over H2 135 135 135 o Benefitting from positive current account performance, strong savings growth and easing churn 30 30 30 • 2025 structural hedg
Slide 23: Momentum in other income
Momentum in other income Divisional other income (£m) YoY 6,120 • OOI £6.1bn in 2025, up 9% YoY; Q4 up £37m / 2% 5,597 5,123 • Broad based other income momentum in 2025 1,431 +11% 1,292 o Retail up 12%: Growing Motor, strength in Cards and 1,209 banking income o Commercial up 1%: Solid Markets and T
Slide 24: Continued discipline on costs
Continued discipline on costs Operating costs (£m) +3% YoY 315 22 219 • 2025 operating costs £9,761m; £9,739m excl. impact from 358 9,739 9,761 9,442 Lloyds Wealth; up 3% YoY (595) o Reflects investment, business growth, inflation net of cost savings o Q4 £2.6bn, incl. Bank Levy 1 2024 Cost savings
Slide 25: Strong and stable credit performance
Strong and stable credit performance Impairment (£m) FY FY YoY Q4 QoQ 2025 2024 £m 2025 £m Charge (credit) pre updated MES1 721 827 (106) 130 (10) • Strong and stable credit performance, reflecting prudent Retail 734 789 (55) 107 (94) lending and healthy customer behaviours Commercial Banking (14) 4
Slide 26: Updated macroeconomic outlook
Updated macroeconomic outlook Unemployment CPI inflation 6% 5% 4% 5% 3% 4% 2% • Minor forecast changes since Q3: 3% 1% o Slightly stronger GDP expectations in 2026 and beyond, 2% 0% forecast at 1.2% (vs. 1.0% previously) Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 23 24 24 25 25 26 26 27 2
Slide 27: Robust return on tangible equity
Robust return on tangible equity Statutory profit (£m) 2025 2024 YoY % Q4 2025 QoQ % Underlying profit 6,777 6,343 7 1,926 49 Restructuring (46) (40) (15) (30) Volatility and other items (70) (332) 79 87 Statutory profit before tax 6,661 5,971 12 1,983 69 • 2025 RoTE 12.9%; 14.8% excl. Q3 motor prov
Slide 28: Strong capital generation
Strong capital generation Risk weighted assets (£bn) 1.6 13.1 2.0 (0.4) (5.4) 235.5 224.6 • RWAs £235.5bn, up £10.9bn, inc £3.2bn in Q4 o Includes £2.0bn for CRDIV in Q4, reflecting model outcomes subject to PRA approval 2024 Underlying Credit / CRD IV1 Op. risk Optimisation 2025 lending calibration
Slide 29: Continued growth in capital distributions
Continued growth in capital distributions Dividend per share (pence) 3.65 YoY 2.40 3.17 2.00 2.76 • Strong capital generation enables growth in shareholder 2.40 distributions 2.00 2.43 2.11 1.84 +15% 1.60 • Capital return of up to c.£3.9bn 1.33 1.22 o Final dividend 2.43p; total 3.65p, up c.15% YoY
Slide 30: Sustained strength in performance and upgraded guidance
Sustained strength in performance and upgraded guidance 2026 Net interest income NEW: c.£14.9bn Cost:income <50% CIR (NEW: Operating costs <£9.9bn) Asset quality NEW: c.25bps Purpose RoTE NEW: >16% Helping Capital generation >200bps Britain CET1 ratio target Capital distribution Pay down to c.13.0%
Slide 31: Closing remarks
Closing remarks Charlie Nunn
Slide 32: Continued strategic delivery; sustained strength in performance
Continued strategic delivery; sustained strength in performance Purpose Strategic delivery accelerating, benefitting customers and wider stakeholders Helping Sustained strength in financial performance, meeting 2025 guidance Britain Strong capital generation, enabling 15% dividend growth and £1.75bn
Slide 33: Q&A
Q&A
Slide 34: Appendix
Appendix
Slide 35: Quarterly P&L and key ratios
Quarterly P&L and key ratios (£m) Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Net interest income 3,529 3,451 3,361 3,294 3,276 3,231 3,154 3,184 Other income 1,594 1,557 1,517 1,452 1,433 1,430 1,394 1,340 Operating lease depreciation (379) (365) (355) (355) (331) (315) (396) (2
Slide 36: Updated economic scenarios
Updated economic scenarios Scenario ECL1 (£m) Measure (%) 2025 2026 2027 2028 2029 Ave. 25-29 GDP 1.4 2.0 2.3 1.6 1.6 1.8 Unemployment rate 4.8 4.2 3.2 3.1 3.2 3.7 HPI growth 0.8 3.5 7.1 6.9 6.0 4.8 Upside (30%) 2,591 CRE price growth 1.2 7.9 4.9 1.7 0.8 3.2 UK Bank Rate 4.13 3.94 4.59 5.07 5.33 4.6
Slide 37: Low mortgage LTVs
Low mortgage LTVs December 20251 20241 20101 Mainstream Buy to let Specialist Total Total Total Average LTVs 44.7% 48.2% 32.0% 45.0% 43.6% 55.6% New business LTVs 64.7% 58.8% N/A 64.1% 63.2% 60.9% ≤80% LTV 82.9% 99.9% 98.4% 85.6% 88.5% 57.0% >80–90% LTV 14.4% 0.1% 0.9% 12.2% 10.0% 16.2% >90–100% LTV
Slide 38: Investor Relations contacts
Investor Relations contacts Douglas Radcliffe Sarah Robson Group Investor Relations Director Senior Manager, Investor Relations +44 (0)20 7356 1571 +44 (0)7494 513 983 Douglas.Radcliffe@lloydsbanking.com Sarah.Robson2@lloydsbanking.com Nora Thoden Tom Grantham Director, Investor Relations – ESG Seni
Slide 39: 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