Highlights

  • Statutory profit after tax stood at GBP 3.3B in the nine months ended 30 September 2025 versus GBP 3.8B a year ago.
  • Underlying net interest income rose 6%YoY to GBP 10.1B with NIM at 3.04%.
  • Customer deposits increased 3% YoY to GBP 496.7B during the nine-month period.

Lloyds Banking Group plc (LSE:LLOY) released its financial results for the nine months ended 30 September 2025, reporting statutory profit after tax of GBP 3.3B, compared to GBP 3.8B in the same period last year. The group recorded a return on tangible equity of 11.9%, or 14.6% excluding the motor finance charge taken in the third quarter.

Net income for the nine-month period increased 6% to GBP 13.6B, driven by higher underlying net interest income and other income. Underlying profit before impairment stood at GBP 5.47B, while underlying profit after impairment was GBP 4.85B, down from GBP 5.35B in the previous year.

Group Chief Executive Charlie Nunn stated, “The Group continues to perform well, demonstrating robust financial performance alongside strategic progress, including our recent acquisition of Schroders Personal Wealth. Strong capital generation was supported by income growth, cost discipline and strong asset quality in the first nine months of 2025, despite the impact of the additional motor finance charge in the third quarter. Our strategic progress combined with this financial performance gives us confidence in our performance for the year and our 2026 guidance.”

Income and Margins

Underlying net interest income rose 6% to GBP 10.1B, reflecting a banking net interest margin of 3.04%, up 10 basis points year-on-year. Average interest-earning banking assets reached GBP 460.4B, while underlying other income increased 9% to GBP 4.5B, supported by higher customer activity and benefits from ongoing strategic initiatives.

Operating lease depreciation was GBP 1.08B, up 8%, in line with fleet expansion. Operating costs grew 3% to GBP 7.2B, reflecting inflationary pressures and strategic investments, partially offset by cost savings.

Asset Quality and Capital Position

The Group reported an underlying impairment charge of GBP 618M, representing an asset quality ratio of 18 basis points. Customer loans and advances rose by 4% to GBP 477.1B, with growth in both Retail and Commercial Banking segments.

Customer deposits increased 3% to GBP 496.7B, including GBP 4B growth in Retail and GBP 10B in Commercial Banking. Risk-weighted assets stood at GBP 232.3B, up GBP 7.7B from December 2024.

The Common Equity Tier 1 (CET1) ratio remained at 13.8%, with strong capital generation of 110 basis points, or 141 basis points excluding the motor finance charge. Tangible net assets per share rose to 55.0 pence, up by 2.6 pence since December 2024.

Strategic Update and 2025 Guidance

In October 2025, Lloyds completed the full acquisition of Schroders Personal Wealth, adding approximately GBP 17B in assets under administration. The Group expects this to enhance its wealth management offering.

Based on current assumptions, Lloyds projects underlying net interest income for 2025 at around GBP 13.6B, operating costs near GBP 9.7B (excluding the Schroders acquisition), and an asset quality ratio of roughly 20 basis points. The Group anticipates a return on tangible equity of about 12

Share performance

The company is currently trading at GBX per share 84.04, down by 0.52% from the previous close of GBX 84.48.