Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — H1 2025 Earnings Presentation
33 slides from Lloyds Banking's earnings presentation, Jul 24, 2025
Slide 1: 2025 Half Year Results
2024 Results Lloyds Banking Group 20th February 2025 2025 Half Year Results Lloyds Banking Group 24 July 2025 1
Slide 2: Business and strategic update
Business and strategic update Charlie Nunn
Slide 3: Helping Britain Prosper
Strategy delivering sustained strength in financial performance Purpose Delivering on strategy to the benefit of customers and wider stakeholders Helping Sustained strength in financial performance Britain Strong capital generation, supporting 15% increase in interim dividend Prosper Reaffirmed 2025
Slide 4: Successfully delivering for all stakeholders
Successfully delivering for all stakeholders Clear purpose >£8bn >£1bn c.£9bn driving growth Lending to first time buyers in H1 Funding support to Social Group sustainable financing in H1 Housing sector in H1 Positive business 14% 20% >4pp Increase in gross new mortgage Protection take-up rate for I
Slide 5: Constructive operating environment
Constructive operating environment Improving household finances UK outlook Household debt to income ratio (%), source ONS1 137 Strengthening financial health 117 across households and businesses Dec-16 Jun-17 Dec-17 Jun-19 Dec-19 Jun-21 Jun-20 Dec-20 Jun-23 Dec-23 Jun-18 Dec-18 Jun-22 Dec-22 Jun-24
Slide 6: Delivering on our 2025-26 priorities for growth
Grow Focus Change Delivering on our 2025-26 priorities for growth Retail Commercial Banking IP&I Deepening relationships and delivering Building a digitally-led relationship bank Transforming engagement and driving differentiated propositions and driving CIB growth and diversification deeper Group r
Slide 7: Driving operating leverage through cost and capital efficiency
Grow Focus Change Driving operating leverage through cost and capital efficiency Enhanced productivity and cost saves driving lower cost:income ratio Cost >40% c.20% c.£1.5bn efficiency Increase in customers served per Reduction in legacy tech Gross cost savings vs. 2021, distribution FTE vs. 2021 a
Slide 8: Leveraging our enablers to drive competitive strength
Grow Focus Change Leveraging our enablers to drive competitive strength Delivering leading experiences Leveraging digital, AI and data to Digitising front to back to to drive engagement broaden revenue opportunities improve productivity Growing the core franchise Growing in high value areas Transfor
Slide 9: Higher, more sustainable returns and capital generation
Higher, more sustainable returns and capital generation Confident in 2026 outlook >£1.5bn Additional revenues from strategic initiatives Growing and diversifying revenues… 50:50 NII:OOI split across strategic revenues …enhancing cost and capital <50% Cost:Income ratio efficiency… c.13.0% CET1 ratio
Slide 10: Financial update
Financial update William Chalmers
Slide 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: Strong return on tangible equity
Strong return on tangible equity Statutory profit (£m) H1 H1 YoY Q2 Q1 QoQ 2025 2024 % 2025 2025 % Underlying profit 3,561 3,497 2 2,029 1,532 32 Restructuring (9) (15) 40 (5) (4) (25) Volatility and other items (48) (158) 70 (37) (11) • Strong H1 RoTE 14.1% Statutory profit before tax 3,504 3,324 5
Slide 23: 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 24: Continued growth in capital distributions
Continued growth in capital distributions Dividend per share (p) YoY 3.17 2.00 2.76 2.40 2.00 2.11 1.84 1.60 • Strong capital generation enables continued growth in 1.33 shareholder distributions 1.06 1.22 15% 0.67 0.80 0.92 • Interim dividend of 1.22p, 15% higher YoY, in line with guidance for a pr
Slide 25: Sustained strength and reaffirmed guidance
Sustained strength and reaffirmed guidance Sustained strength in financial performance, supporting higher interim dividend Reaffirmed 2025 guidance Confident in 2026 expectations Purpose 2025 2026 Helping Net interest income c.£13.5bn Britain Operating costs Asset quality c.£9.7bn c.25bps <50% CIR P
Slide 26: Closing remarks
Closing remarks Charlie Nunn
Slide 27: Helping Britain Prosper
Strategy delivering sustained strength in financial performance Purpose Delivering on strategy to the benefit of customers and wider stakeholders Helping Sustained strength in financial performance Britain Strong capital generation, supporting 15% increase in interim dividend Prosper Reaffirmed 2025
Slide 28: Q&A
Q&A
Slide 29: Appendix
Appendix
Slide 30: 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 31: 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 32: 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 33: 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