Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Q1 2025 Earnings Presentation
17 slides from Lloyds Banking's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Interim Management Statement
2024 Results Lloyds Banking Group 20th February 2025 Q1 2025 Interim Management Statement Lloyds Banking Group 1 May 2025 1
Slide 2: Confident in our outlook
Confident in our outlook Purpose Purpose driven strategy delivering for customers and wider stakeholders Helping Sustained strength in financial performance Britain Prosper Confident in 2025 and 2026 guidance Lloyds Banking Group 22
Slide 3: Sustained strength in financial performance
Sustained strength in financial performance Financial performance (£m) Q1 Q4 QoQ Q1 YoY 2025 2024 % 2024 % Net interest income 3,294 3,276 1 3,184 3 Other income 1,452 1,433 1 1,340 8 • Statutory PAT £1.1bn; RoTE 12.6% Operating lease depreciation (355) (331) (7) (283) (25) Net income 4,391 4,378 -
Slide 4: Strong growth in lending and deposits
Strong growth in lending and deposits Q1 lending change (£bn) Q1 deposit change (£bn) Retail Commercial Retail Commercial +£7.0bn/+2% +£0.3bn/0% +£2.7bn/+1% +£2.3bn/+1% • Lending £466.2bn, up £7.1bn or 2% in Q1; up 4% YoY o Mortgages up £4.8bn QoQ, with significant demand ahead of stamp duty change
Slide 5: Continued NII growth
Continued NII growth Net interest income and banking net interest margin (£bn, bps) £3.28bn £3.29bn 10 1 (2) 303 297 (3) • NII £3.3bn, up 1% QoQ and 3% YoY o NIM 303bps, up 6bps QoQ, with strong hedge tailwind Q4 2024 Deposits Structural hedge Mortgages Funding, capital & Q1 2025 more than offsettin
Slide 6: Broad based momentum in OOI
Broad based momentum in OOI Other Income (£m) +8% YoY +7.5% 2-year CAGR 1,340 1,394 1,430 1,433 1,452 • Other income £1.5bn, up 8% YoY; broad based momentum 1,257 1,281 1,299 1,286 o Strength YoY in Motor and General Insurance and QoQ in CIB Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4
Slide 7: Costs tracking as planned
Costs tracking as planned Operating costs (£bn) +6% (+3% excl. severance) 161 50 60 2,550 2,402 (123) • Operating costs £2.6bn, up 6% or 3% excl. severance Q1 2024 Cost savings Pay & inflation Investment, Other Q1 2025 o Severance front-loaded (up c.£80m YoY) as planned depreciation & strategic opex
Slide 8: Resilient asset quality
Resilient asset quality Impairment (£m) Q1 Q4 QoQ Q1 YoY 2025 2024 £m 2024 £m Charge (credit) pre updated MES1 274 230 44 249 25 Retail 204 197 7 303 (99) Commercial Banking 71 32 39 (49) 120 • Resilient asset quality, reflecting prudent lending and Other (1) 1 (2) (5) 4 healthy customer behaviours
Slide 9: Robust RoTE alongside TNAV growth
Robust RoTE alongside TNAV growth Statutory profit (£m) Q1 Q4 QoQ Q1 YoY 2025 2024 % 2024 % Underlying profit 1,532 993 54 1,757 (13) Restructuring (4) (19) 79 (12) 67 Volatility and other items (11) (150) 93 (117) 91 Statutory profit before tax 1,517 824 84 1,628 (7) Tax expense (383) (124) (413) 7
Slide 10: Strong underlying capital generation
Strong underlying capital generation Risk weighted assets (£bn) 3.4 3.8 - (0.8) 230.1 (0.9) 224.6 • RWAs £230.1bn, up £5.5bn o Strong lending growth plus c.£2.5bn temporary RWA increase which is expected to reverse by end Q3 Q4 2024 Underlying Credit / CRD IV1 Market risk Optimisation Q1 2025 lendin
Slide 11: Confident in our outlook
Confident in our outlook Purpose driven strategy delivering for customers and wider stakeholders Sustained strength in financial performance Confident in 2025 and 2026 guidance: Purpose 2025 2026 Helping Net interest income c.£13.5bn Britain Operating costs Asset quality c.£9.7bn c.25bps <50% CIR Pr
Slide 12: Q&A
Q&A
Slide 13: Appendix
Appendix
Slide 14: Quarterly P&L and key ratios
Quarterly P&L and key ratios (£m) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Net interest income 3,294 3,276 3,231 3,154 3,184 3,317 3,444 3,469 3,535 Other income 1,452 1,433 1,430 1,394 1,340 1,286 1,299 1,281 1,257 Operating lease depreciation (355) (331) (315) (396)
Slide 15: Updated economics scenarios
Updated economics scenarios Scenario ECL (£m) Measure (%) 2025 2026 2027 2028 2029 Ave. 25-29 GDP 1.3 2.2 1.6 1.5 1.4 1.6 Unemployment rate 4.1 3.2 3.1 3.1 3.2 3.3 HPI growth 2.9 5.9 6.8 5.4 4.3 5.1 Upside (30%) 2,869 CRE price growth 6.1 5.7 2.6 1.0 0.4 3.2 UK Bank Rate 4.43 4.72 4.86 5.06 5.20 4.8
Slide 16: 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 17: 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