Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Debt Investor Presentation (January 2026)
34 slides from Lloyds Banking's debt investor presentation, Jan 29, 2026
Slide 1: 2025 Results Fixed Income Presentation
2025 Results Fixed Income Presentation Lloyds Banking Group 29 January 2026
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: 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 4: Leveraging our enablers to accelerate our transformation
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 2026 target) inves
Slide 5: Extending our Gen AI leadership position
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-app search function
Slide 6: Financial update
Financial update
Slide 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: Capital, Funding & Liquidity
Capital, Funding & Liquidity
Slide 20: 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 21: Prudent capital ratios
Prudent capital ratios 13.2% pro forma CET1 following 147bps1 of capital generation UK leverage ratio1 not binding for LBG with significant headroom above requirement c.300bps 1.6% UK Leverage Reg c.95bps MDA 10.2%2 Requirement 1.8% 4.45% 0.6% Group leverage 0.6% 3 2.5% OSII 13.2% ratio add-on 5.4%
Slide 22: Significant capital headroom when operating to c.13.0% target
Significant capital headroom when operating to c.13.0% target CET1 resources at c.13.0% target (£bn) 30.6 • Capital strength, risk profile and regulatory clarity 29.2 28.5 underpins c.13.0% target by end-2026 27.6 27.4 o Track record of sustainable capital growth, and expect 26.4 capital generation
Slide 23: Active capital & risk management
Active capital & risk management 2025 risk transfer transactions • The Group engages in risk transfer transactions for capital and Synthetic SRT Securitised Sale risk management purposes amongst other methods for balance sheet optimisation • Investors provide credit protection on • Assets are fully
Slide 24: 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)1 476 475 471 483 496 451 164 163 171 168 163 170 103 101 103 112 114 145% 97 124% 100% 196 197 206 218 22
Slide 25: Expect up to £15bn issuance in 2026
Expect up to £15bn issuance in 2026 Issuance Rationale 2025 Completed 2026 Guidance • Refinancing maturities across core and non-core currencies HoldCo • Support the Group’s balance sheet growth £6.4bn up to £7bn Senior • Continued commitment to sustainable format • AT1 pre-funding in November 2025
Slide 26: Ratings improvements reflect strong fundamentals
Ratings improvements reflect strong fundamentals Ring-fenced Non-ring- Lloyds Banking Group bank fenced bank Lloyds Bank, Credit Ratings1 UK Sovereign LBG HoldCo2 LBG Tier 2 LBG AT1 LBCM ESG Ratings1,3 BoS S&P HoldCo Senior, Tier 2 and AT1 ratings upgraded in 2025 S&P CSA A- A+ A AA BBB+ BBB- S&P St
Slide 27: Appendix
Appendix
Slide 28: Simple group structure with multiple issuance points
Simple group structure with multiple issuance points HoldCo Lloyds Banking Group A-/ 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 Scottish
Slide 29: Diverse funding portfolio as at Q425
Diverse funding portfolio as at Q4251 Wholesale funding portfolio by type Wholesale funding portfolio by currency 12% 6% MM Funding Covered Bond 22% 27% 25% Securitisation OpCo Senior £99.4bn GBP USD EUR Other £99.4bn 32% 11% HoldCo Senior Sub Debt 7% 47% 12% Wholesale funding portfolio by maturity
Slide 30: 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 31: 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 32: 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 33: Contacts
Contacts Debt Investor Relations Group Investor Relations Sergio Afonso Douglas Radcliffe Group Investor Relations Director Group Corporate Treasury Director +44 (0)20 7356 1571 Sergio.Afonso2@lloydsbanking.com Douglas.Radcliffe@lloydsbanking.com Kris Middleton Nora Thoden Director, Investor Relatio
Slide 34: 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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