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Highlights

  • LLOY reported H1 2025 statutory profit after tax of GBP 2.5 billion, with return on tangible equity of 14.1%.
  • Lloyds Banking Group grew customer lending by GBP 11.9 billion and deposits by GBP 11.2 billion in H1FY25.
  • The company declared a 15% YoY increase in its interim dividend to 1.22 pence per share.

Lloyds Banking Group plc (LSE:LLOY), a leading UK-based financial services provider, posted a statutory profit after tax of GBP 2.5 billion for the six months ended 30 June 2025, up slightly from GBP 2.4 billion a year earlier. The Group recorded net income growth of 6% year-on-year, driven by a 5% increase in net interest income to GBP 6.7 billion and a 9% rise in underlying other income to GBP 3.0 billion. The return on tangible equity stood at 14.1%, while the net interest margin improved by 10 basis points to 3.04%.

Operating costs rose 4% to GBP 4.9 billion, reflecting inflationary impacts, business growth, and continued strategic investment. Meanwhile, the underlying impairment charge rose to GBP 442 million, corresponding to an asset quality ratio of 19 basis points. The Group’s capital base remains healthy, with a CET1 ratio of 13.8% following ordinary dividend accruals. Customer lending and deposit growth continued across both retail and commercial segments. Loans and advances increased by GBP 11.9 billion in the first half of 2025, bringing the Group’s total to GBP 471.0 billion.

Customer deposits grew by GBP 11.2 billion over the same period, reaching GBP 493.9 billion. Risk-weighted assets rose to GBP 231.4 billion, up by GBP 6.8 billion, partly due to lending growth and hedging activity. Pro forma capital generation stood at 86 basis points, and tangible net assets per share increased by 2.1 pence to 54.5 pence. The company declared an interim ordinary dividend of 1.22 pence per share, representing a 15% increase year-on-year. The Group reported continued progress against its purpose-driven strategy, supported by enhanced customer engagement, cross-group collaboration, and digital capability investments. Strategic initiatives have generated over GBP 1 billion in annualised additional revenues, with the company targeting over GBP 1.5 billion by 2026.

Lloyds reaffirmed its full-year 2025 guidance, including underlying net interest income of approximately GBP 13.5 billion, operating costs of around GBP 9.7 billion, and capital generation of about 175 basis points. Return on tangible equity is expected to be about 13.5%, with the asset quality ratio guided at around 25 basis points. For FY26, the Group remains committed to its previously stated targets: a cost-to-income ratio below 50%, capital generation above 200 basis points, and a return on tangible equity exceeding 15%. The CET1 ratio is expected to normalise to around 13.0% by the end of 2026.

LLOY shares were trading 0.72% higher at GBX 78.20 per share as on 24 July 2025.