Slide 1: 2026 half year results fixed income presentation
2026 half year results fixed income presentation Lloyds Banking Group 30 July 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: 2022-26 strategic progress
2022-26 strategic progress
Slide 4: The UK financial services leader - customer focused, digitally led
The UK financial services leader - customer focused, digitally led Market leader Digital and AI leader Cost and capital leader Mobile app users, UK’s Since 2021 c.28m Retail customers c.22m largest digital bank >£2bn Gross cost savings c.7bn Annual digital logons c.1m Commercial relationships Cumula
Slide 5: Market leader: Broad-based growth since 2021
Market leader: Broad-based growth since 2021 c.£5bn net income growth, mid-single-digit CAGR Customer experience improvements Net income (£bn) 12pp increase in FRS Net Promoter Score vs. 20212 c.£2bn Market share gains 3pp average market share increase in target areas c.£5bn Balance sheet growth +£4
Slide 6: Digital and AI leader: Established the platform for innovation
Digital and AI leader: Established the platform for innovation Strong execution against a clear digital and AI strategy Divisional examples c.11k tech and data hires since 2021; platform teams c.80% weighted to tech talent Invested in people and >60% of applications on Cloud (2021: Negligible); >50%
Slide 7: Cost and capital leader: Created capacity to fund growth
Cost and capital leader: Created capacity to fund growth Successfully mitigated inflationary and regulatory headwinds Significant gross cost savings Operating costs (£bn) >£2bn realised to date (original target: c.£1bn by 2024) 54% CIR1 <50% CIR Productivity enhancements c.45% increase in active cus
Slide 8: On track to deliver 2026 and accelerate beyond
On track to deliver 2026 and accelerate beyond New strategic c.£2bn Diversified 8% initiative revenues Strategic initiative revenues income growth OOI CAGR vs. 2021 (annualised); by FY 2026 Net income contribution +4pp Significant gross >£2bn Improved <50% cost savings Gross cost savings realised op
Slide 9: HY results update
HY results update
Slide 10: Sustained strength in financial performance
Sustained strength in financial performance H1 H1 YoY Q2 Q1 QoQ Financial performance1 (£m) 2026 2025 % 2026 2026 % Net interest income 7,278 6,655 9 3,709 3,569 4 Other income 3,310 2,969 11 1,705 1,605 6 Operating lease depreciation (841) (710) (18) (452) (389) (16) • Statutory PAT £3.1bn in H1; R
Slide 11: Robust balance sheet growth
Robust balance sheet growth Q2 lending change (£bn) Q2 deposit change (£bn) Retail Commercial Retail Commercial +£1.5bn/0% +£3.1bn/3% £(0.3)bn/(0)% +£5.2bn/+3% (+£3.3bn / 1% excl. securitisation) • Lending £491.5bn, up £5.3bn / 1% in Q2, 2% YTD. Growth across portfolios o Mortgages up £0.2bn QoQ, up
Slide 12: Continued growth in net interest income
Continued growth in net interest income Net interest income and banking net interest margin (£bn, bps) £3.57bn £3.71bn • H1 NII £7.3bn, up 9% YoY, Q2 up 4% QoQ 9 • H1 AIEAs £475.7bn, up 4% YoY; Q2 £477.9bn, up 1% QoQ 2 (3) (3) 3.22% 3.17% • H1 NIM 319bps; Q2 NIM 322bps up 5bp QoQ o Hedge tailwind an
Slide 13: Continued momentum in other income
Continued momentum in other income Divisional other income (£m) YoY 2,969 3,151 3,310 11% • OOI £3.3bn in H1, up 11% YoY; £1.7bn in Q2 197 >100% 78 150 • Broad-based other income momentum in H1 742 818 19% 689 o Retail: Growth in Transport and payments o CB: Loan Markets & Transaction banking growth
Slide 14: Continued discipline on costs
Continued discipline on costs Operating costs (£m) Flat YoY 266 173 (270) (167) 4,876 4,874 • H1 operating costs £4.9bn, flat YoY; £2.4bn in Q2 o Reflects continued efficiency savings, lower investment (including severance) and timing H1 2025 Cost savings 1 Pay & inflation Investment, BAU growth, H1
Slide 15: Continued strong and stable credit performance
Continued strong and stable credit performance Impairment (£m) H1 H1 YoY Q2 Q1 QoQ 2026 2025 £m 2026 2026 £m Charge (credit) pre updated MES1 537 451 86 343 194 149 Retail 488 426 62 264 224 40 Commercial Banking 48 25 23 78 (30) 108 • Strong and stable credit performance reflecting prudent Other 1
Slide 16: Sustained strength in financial performance: 2026 guidance
Sustained strength in financial performance 2026 guidance Net interest income >£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% Progressive and su
Slide 17: Capital, Funding & Liquidity
Capital, Funding & Liquidity
Slide 18: Strong capital generation
Strong capital generation Risk weighted assets (£bn) 2.3 8.1 - (4.1) 241.8 235.5 • RWAs £241.8bn; up £6.3bn in H1, up £1.0bn in Q2 2025 Underlying Credit / Other Optimisation H1 2026 o Strong lending growth offset by continued optimisation lending calibrations movements • Strong 108bps capital gener
Slide 19: Significant growth in capital distributions
Significant growth in capital distributions Dividend per share (pence) YoY 3.65 2.40 3.17 2.76 2.40 2.43 1.84 2.11 • Strong capital generation enables continued growth in 1.60 shareholder distributions 1.58 30% 0.80 0.92 1.06 1.22 • Interim dividend of 1.58p, 30% higher YoY, reflecting capital posit
Slide 20: Prudent capital ratios
Prudent capital ratios No material impact expected from July 2026 FPC proposals on Leverage Requirements, with the Group’s binding constraint being RWA requirements 13.1% pro forma1 CET1 following 108bps of capital generation Significant headroom above UK Leverage Requirements c.290bps 1.6% c.65bps
Slide 21: Active capital & risk management
Active capital & risk management H1 2026 risk transfer transactions Synthetic SRT Securitised Sale • The Group engages in risk transfer transactions for capital and • Investors provide credit protection on • Assets are fully derecognised from the the junior tranche of a reference balance sheet risk
Slide 22: Diversified funding profile underpinned by strong deposit franchise
Diversified funding profile underpinned by strong deposit franchise Stable customer funding profile with continued deposit Wholesale funding profile remains anchored by a strong growth (£bn) customer deposit franchise 483 497 501 471 24% 17% 16% 17% 18% 163 163 171 179 103 101 103 103 76% 83% 84% 83
Slide 23: Liquidity buffer remains robust and well positioned
Liquidity buffer remains robust and well positioned £131bn1 liquidity buffer hedged for interest rate risk exposure 4% 5 LCR level 1 • The liquidity buffer is predominantly held in Level 1 high- Central Bank Reserves LCR level 2 quality liquid assets, principally cash and government Reverse Repo 2 4
Slide 24: 2026 Wholesale Issuance
2026 Wholesale Issuance 2026 Completed YTD Issuance detail Feb € 1.5bn Dual Tranche G May €750m Single Tranche • Refinancing maturities across core and non-core currencies Feb $2.75bn Multi-tranche • Support the Group’s balance sheet growth HoldCo £5.5bn Jun £750m Single Tranche Guidance: up to £7bn
Slide 25: Ratings reflect strong fundamentals
Ratings 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 CSA A- A+ A AA BBB+ BBB- S&P Stable Stable Stable Stable Stable Stable 51 A-2 A-1 A-1 YoY reduction dri
Slide 26: Strategy overview
Strategy overview
Slide 27: Stable UK economy, LBG uniquely positioned to grow faster
Stable UK economy, LBG uniquely positioned to grow faster Stable UK economy with potential to move to higher growth trajectory Resilient growth Capacity to spend and invest Constructive regulatory environment Average real GDP growth 1.4% p.a. to 2030 Household debt:income down >15pp1 vs. 2021 Conduc
Slide 28: Helping Britain Prosper: Strategy
Strategy Purpose Accelerate through reimagined customer experiences, increased Group Helping connectivity, and a productivity step-change, enabled by pioneering technology Britain Strategic pillars Prosper Grow the core Innovate to deepen & diversify Simplify to outperform Customer Promise Making fi
Slide 29: Three pillars represent distinct opportunities
Three pillars represent distinct opportunities Grow the core Innovate to deepen & diversify Simplify to outperform Focus areas Scale our market leading businesses Increase cross-Group connectivity Build future-ready skills and infrastructure Accelerate in faster growing areas within our core Extend
Slide 30: Driving sustainable value creation
Driving sustainable value creation Building on our competitive advantage… Continued income growth Mid-single-digit net income CAGR Market Digital and Cost and High-single-digit OOI CAGR leader AI leader capital leader Improving operating leverage <45% CIR in 2030, with YoY reductions …to deliver an
Slide 31: Financial outlook reinforces our track record
Financial outlook reinforces our track record Growing revenues and improved operating leverage driving stronger, sustainable returns 2022-2024 2025-2026 2027-2030 Returning to growth Building momentum Accelerate 2030 Group net income (£bn) c.£20bn c.£15bn 2021 2022 2023 2024 2025 2026 2027 2028 2029
Slide 32: Financial outlook
Financial outlook
Slide 33: Prudent macro assumptions over plan period
Prudent macro assumptions over plan period Stable economic outlook, resilient strategy in a range of scenarios Economic growth Interest rates Unemployment and HPI Average real GDP growth 1.4% p.a. to 2030 Terminal base rate assumption of 3.50% Unemployment peak at 5.5% in Q1 2027 Average nominal GDP
Slide 34: Investment discipline: Value focused execution, efficient funding
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Investment discipline: Value focused execution, efficient funding Strategic and financial value Higher investment financed by gross cost saves Operating expenses (£bn) Reimagined customer
Slide 35: Efficiency focus: Remains a keystone
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Efficiency focus: Remains a keystone Proven costs track record; further opportunity Capital efficient model Net income per average RWA (%) 2022-H1 2026 2027-2030 2021 7.7% >£2bn c.£2bn H1
Slide 36: Risk management: High quality book, prudent risk appetite
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Risk management: High quality book, prudent risk appetite Consistently low AQR Key drivers Asset quality ratio (bps) – Total (bars) and pre-MES (line) Low risk, diversified balance sheet
Slide 37: Continued income momentum
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Continued income momentum Net income growth (£bn) Innovate to deepen & diversify Grow the core e.g. >£2bn e.g. Digital wallet, Transport Digital assets, Incl. c.£2bn SI ecosystem, Connect
Slide 38: NII supported by diversified lending and deposit growth
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation NII supported by diversified lending and deposit growth… Diversified and growing balance sheet CIB 14% BCB 6% Lending Nominal GDP+ growth across strategic areas, sustainable returns Retai
Slide 39: …and underpinned by hedge tailwind
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation …and underpinned by hedge tailwind NII growth (£bn) Structural hedge income (£bn) Upside implied 2021 £11.2bn from market rates 2026 >£14.9bn Retail Broad-based lending growth >£9bn Plan
Slide 40: Capital efficient OOI growth, increasing diversification
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Capital efficient OOI growth, increasing diversification Cross-Group opportunities OOI growth (£bn) (e.g. Connected Commerce) 8% OOI CAGR FY 2021-H1 2026 e.g. e.g. LDC, Bancassurance, Llo
Slide 41: Consistently improving operating leverage
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Consistently improving operating leverage CIR to improve every year Key underpins Cost:income ratio (%) 54% Revenue Mid-single-digit net income growth CAGR <50% <45% Cost saves c.£2bn gro
Slide 42: Growing capital generation, growing shareholder distributions
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Growing capital generation, growing shareholder distributions Growing absolute capital generation on increasing RWAs Targeted deployment to sustain growing distributions Considered half-y
Slide 43: Guidance overview
Guidance overview 2026 2027-2030 Annual guidance to be provided each year-end Mid-single-digit net income CAGR Income NII >£14.9bn High-single-digit OOI CAGR Cost:income <50% CIR (Operating costs <£9.9bn) <45% CIR in 2030, with YoY reductions Asset quality c.25bps 25-30bps through the plan period c.
Slide 44: Appendix
Appendix
Slide 45: 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 L&A: £470bn4 Assets: £656bn L&A: £21bn4 Assets: £10
Slide 46: Diverse funding portfolio as at H126
Diverse funding portfolio1 as at H126 Wholesale funding portfolio by type Wholesale funding portfolio by currency 10% 6% MM Funding Covered Bond 24% 29% 23% Securitisation OpCo Senior GBP USD EUR Other 33% £108bn £108bn 12% HoldCo Senior Sub Debt 10% 7% 47% Wholesale funding portfolio by maturity Wh
Slide 47: Growth across lending books
Growth across lending books Mortgage book (Book size £bn, Gross margin %1) Cards, Loans & Motor (Book size £bn, Gross margin %1) 0.89% 0.85% 0.77% 318 323 325 YTD H1 2026 18 11 8 9 46 5.09% 8 6 8 15 16 (4)% 16 H2 2025 17 11 8 8 44 5.26% 11 12 16 H1 2025 16 10 8 8 42 5.61% 126 127 125 Cards Loans Mot
Slide 48: Targeted deposit performance supporting structural hedge
Targeted deposit performance supporting structural hedge Customer deposits (Book size £bn, Gross margin %1) Hedged balances2 (£bn) 1.29% 1.43% 1.56% 244 244 246 501 YTD 494 496 79 79 80 Structural 101 103 103 - hedge • Total deposits 135 of £xbn, up £xbn 135 or x% in H1 135 • Retail deposits 30 up £
Slide 49: Quarterly P&L and key ratios
Quarterly P&L and key ratios (£m) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Net interest income 3,709 3,569 3,529 3,451 3,361 3,294 3,276 3,231 3,154 Other income 1,705 1,605 1,594 1,557 1,517 1,452 1,433 1,430 1,394 Operating lease depreciation (452) (389) (379) (365)
Slide 50: Updated economic scenarios
Updated economic scenarios Scenario ECL1 (£m) Measure (%) 2026 2027 2028 2029 2030 Ave. 26-30 GDP 1.4 2.4 1.9 1.6 1.6 1.8 Unemployment rate 4.8 3.7 3.1 3.1 3.3 3.6 HPI growth 1.8 4.5 7.7 7.5 6.0 5.5 Upside (30%) 2,499 CRE price growth 3.3 6.6 3.1 2.0 0.7 3.1 UK Bank Rate 3.85 4.79 5.19 5.46 5.65 4.9
Slide 51: Low mortgage LTVs
Low mortgage LTVs Q2 20261 20251 20101 Mainstream Buy to let Specialist Total Total Total Average LTVs 45.4% 48.9% 31.4% 45.7% 45.0% 55.6% New business LTVs 66.9% 61.8% N/A 66.2% 64.1% 60.9% ≤80% LTV 81.4% 99.9% 99.3% 84.2% 85.6% 57.0% >80–90% LTV 15.8% 0.1% 0.5% 13.4% 12.2% 16.2% >90–100% LTV 2.8%
Slide 52: Contacts
Contacts Debt Investor Relations Group Investor Relations Sergio Afonso Douglas Radcliffe Group Capital Director & Deputy Treasurer Group Investor Relations Director Sergio.Afonso2@lloydsbanking.com Douglas.Radcliffe@lloydsbanking.com Kris Middleton Nora Thoden Head of Treasury Capital Markets Direc
Slide 53: 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