SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16a

of the Securities Exchange Act of 1934

 

 

24 July 2025

LLOYDS BANKING GROUP plc

(Translation of registrant's name into English)

 

5th Floor

25 Gresham Street

London

EC2V 7HN

United Kingdom

 

 

(Address of principal executive offices)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports

under cover Form 20-F or Form 40-F.

 

Form 20-F..X..     Form 40-F 

 

 

Index to Exhibits

 

 

Item

 

 No. 1 Regulatory News Service Announcement, 24 July 2025

           re: 2025 Half-Year Results

 

Lloyds Banking Group plc

2025 Half-Year Results

24 July 2025

 

CONTENTS

Results for the half-year	1
Income statement (underlying basis) and key balance sheet metrics	3
Quarterly information	4
Balance sheet analysis	5
Group results - statutory basis	6
Group Chief Executive's statement	7
Summary of Group results	9
Divisional results
Segmental analysis - underlying basis	18
Retail	20
Commercial Banking	22
Insurance, Pensions and Investments	24
Equity Investments and Central Items	28
Alternative performance measures	29
Risk management
Principal risks and uncertainties	35
Capital risk	36
Credit risk	41
Liquidity risk	52
Interest rate sensitivity	54
Statutory information
Condensed consolidated half-year financial statements (unaudited)	55
Condensed consolidated income statement (unaudited)	56
Condensed consolidated statement of comprehensive income (unaudited)	57
Condensed consolidated balance sheet (unaudited)	58
Condensed consolidated statement of changes in equity (unaudited)	59
Condensed consolidated cash flow statement (unaudited)	62
Notes to the condensed consolidated half-year financial statements (unaudited)	63
Statement of directors' responsibilities	95
Independent review report to Lloyds Banking Group plc	96
Key dates	97
Basis of presentation	97
Forward-looking statements	98
Contacts	99

Alternative performance measures

The Group uses a number of alternative performance measures, including underlying profit, in the description of its business performance and financial position. These measures are labelled with a superscript 'A' throughout this document, with the exception of content on pages 1 to 2 and pages 7 to 8 which is, unless otherwise stated, presented on an underlying basis. Further information on these measures is set out on page 29.

Forward-looking statements

This news release contains forward-looking statements. For further details, reference should be made to page 98.

 RESULTS FOR THE HALF-YEAR

"We have shown sustained strength in our financial performance in the first half of 2025, with income growth, cost discipline and robust asset quality, driving strong capital generation and increased shareholder distributions, with a 15% increase in the interim ordinary dividend.

We continue to make great progress in our purpose-driven strategy, building differentiated customer outcomes and delivering growth across our business as we build towards our ambitious targets for 2026.

Our strategic progress and sustained strength in our financial performance allows us to re-affirm our 2025 guidance and gives us confidence in our 2026 commitments. It also underpins our delivery of higher, more sustainable returns for our shareholders."

                                                                                                                                                                                                  Charlie Nunn, Group Chief Executive

Successfully delivering our purpose-driven strategy

●  Driving growth across the business through deeper customer relationships, focusing on high value areas, cross-Group collaboration and building the core franchise

●  Enhancing operating leverage through improving capabilities and capitalising on scale

●  Leveraging investment in technology and data to reinforce competitive strength, with increased digital capabilities and engagement driving broader revenue opportunities and improved productivity

●  Delivered more than £1 billion annualised additional revenues from strategic initiatives and confident in delivering more than £1.5 billion by 2026

Sustained strength in financial performance1

●  Statutory profit after tax of £2.5 billion (half-year to 30 June 2024: £2.4 billion) with net income up 6% year on year, partly offset by higher operating costs and impairment charge. Robust return on tangible equity of 14.1%

●  Underlying net interest income of £6.7 billion, up 5% compared to the first half of 2024. This reflects a banking net interest margin of 3.04%, up 10 basis points year-on-year (up 1 basis point quarter-on-quarter), alongside higher average interest-earning banking assets of £458 billion

●  Underlying other income of £3.0 billion, 9% higher than the prior year (and 4% higher in the second quarter versus the first quarter of 2025), driven by strengthening customer activity and the benefit of strategic initiatives

●  Operating lease depreciation of £710 million, up 5% due to fleet growth, depreciation of higher value vehicles and declines in used electric car prices. Stable in the second quarter reflecting mitigating management actions

●  Operating costs of £4.9 billion, up 4% versus the prior year, reflecting inflationary pressures, strategic investment and business growth costs, partly offset by cost savings and continued cost discipline

●  Robust asset quality with underlying impairment charge of £442 million and asset quality ratio of 19 basis points

Strong growth in lending and deposits

●  Underlying loans and advances to customers increased by £11.9 billion (3%) in the first six months to £471.0 billion, with growth across Retail of £10.1 billion, alongside an increase in Commercial Banking of £1.2 billion

●  Customer deposits increased in the first half of 2025, by £11.2 billion (2%) to £493.9 billion, with £3.7 billion growth in Retail and £7.6 billion in Commercial Banking

Strong capital generation

●  Risk-weighted assets of £231.4 billion, up £6.8 billion in the first half of 2025, reflecting lending growth and a c.£1.2 billion increase primarily due to hedging activity expected to reverse in the third quarter

●  Strong pro forma capital generation of 86 basis points; CET1 ratio of 13.8% after 50 basis points for ordinary dividend accrual

●  Tangible net assets per share of 54.5 pence, up by 2.1 pence in the first half of 2025, from attributable profit and the unwind of the cash flow hedging reserve, partially offset by capital distributions in respect of 2024

●  Interim ordinary dividend of 1.22 pence per share (equivalent to £731 million), up 15% on the prior year

 RESULTS FOR THE HALF-YEAR (continued)

2025 guidance re-affirmed

Based on our current macroeconomic assumptions, for 2025 the Group continues to expect:

●  Underlying net interest income of c.£13.5 billion

●  Operating costs of c.£9.7 billion

●  Asset quality ratio of c.25 basis points

●  Return on tangible equity of c.13.5%

●  Capital generation to be c.175 basis points2

Confident in 2026 guidance

Based on our current macroeconomic assumptions and confidence in our strategy, the Group is maintaining its guidance for 2026:

●  Cost:income ratio of less than 50%

●  Return on tangible equity of greater than 15%

●  Capital generation of greater than 200 basis points2

●  To pay down to a CET1 ratio of c.13.0%

1    See the basis of presentation on page 97.

2    Excludes capital distributions. Includes ordinary dividends received from the Insurance business in February of the following year.

 

 

 

INCOME STATEMENT (UNDERLYING BASIS)A AND KEY BALANCE SHEET METRICS

 

	Half-year to 30 Jun 2025 £m			Half-year to 30 Jun 2024 £m			Change %		Half-year to 31 Dec 2024 £m			Change %
Underlying net interest income	6,655			6,338			5		6,507			2
Underlying other income	2,969			2,734			9		2,863			4
Operating lease depreciation	(710)			(679)			(5)		(646)			(10)
Net income	8,914			8,393			6		8,724			2
Operating costs	(4,874)			(4,700)			(4)		(4,742)			(3)
Remediation	(37)			(95)			61		(804)			95
Total costs	(4,911)			(4,795)			(2)		(5,546)			11
Underlying profit before impairment	4,003			3,598			11		3,178			26
Underlying impairment charge	(442)			(101)					(332)			(33)
Underlying profit	3,561			3,497			2		2,846			25
Restructuring	(9)			(15)			40		(25)			64
Volatility and other items	(48)			(158)			70		(174)			72
Statutory profit before tax	3,504			3,324			5		2,647			32
Tax expense	(960)			(880)			(9)		(614)			(56)
Statutory profit after tax	2,544			2,444			4		2,033			25
Earnings per share	3.8p			3.4p			0.4p		2.9p			0.9p
Dividends per share - ordinary	1.22p			1.06p			15		2.11p
Banking net interest marginA	3.04%			2.94%			10bp		2.96%			8bp
Average interest-earning banking assetsA	£457.8bn			£449.2bn			2		£453.1bn			1
Cost:income ratioA	55.1%			57.1%			(2.0)pp		63.6%			(8.5)pp
Asset quality ratioA	0.19%			0.05%			14bp		0.15%			4bp
Return on tangible equityA	14.1%			13.5%			0.6pp		11.2%			2.9pp

 

At 30 Jun 2025

At 31 Mar 2025

Change %

At 31 Dec 2024

Change %

Underlying loans and advances to customersA

£471.0bn

£466.2bn

1

£459.1bn

3

Customer deposits

£493.9bn

£487.7bn

1

£482.7bn

2

Loan to deposit ratioA

95%

96%

(1pp)

95%

CET1 ratio

13.8%

13.5%

0.3pp

14.2%

(0.4)pp

Pro forma CET1 ratioA,1

13.8%

13.5%

0.3pp

13.5%

0.3pp

UK leverage ratio

5.4%

5.5%

(0.1)pp

5.5%

(0.1)pp

Risk-weighted assets

£231.4bn

£230.1bn

1

£224.6bn

3

Wholesale funding2

£92.2bn

£89.4bn

3

£92.5bn

Liquidity coverage ratio3

145%

145%

146%

(1)pp

Net stable funding ratio4

127%

128%

(1)pp

129%

(2)pp

Tangible net assets per shareA

54.5p

54.4p

0.1p

52.4p

2.1p

A    See page 29.

1    30 June 2025 reflects the interim ordinary dividend received from the Insurance business in July 2025. 31 December 2024 reflects both the full impact of the share buyback announced in respect of 2024 and the ordinary dividend received from the Insurance business in February 2025.

2    Excludes balances relating to margins of £1.1 billion (31 December 2024: £2.8 billion, 31 March 2025: £1.4 billion).

3    The liquidity coverage ratio is calculated as a simple average of month-end observations over the previous 12 months.

4    The net stable funding ratio is calculated as a simple average of month-end observations over the previous four quarter-ends.

QUARTERLY INFORMATIONA

 

	Quarter ended 30 Jun 2025 £m			Quarter ended 31 Mar 2025 £m			Change %			Quarter ended 31 Dec 2024 £m			Quarter ended 30 Sep 2024 £m			Quarter ended 30 Jun 2024 £m			Quarter ended 31 Mar 2024 £m
Underlying net interest income	3,361			3,294			2			3,276			3,231			3,154			3,184
Underlying other income	1,517			1,452			4			1,433			1,430			1,394			1,340
Operating lease depreciation	(355)			(355)						(331)			(315)			(396)			(283)
Net income	4,523			4,391			3			4,378			4,346			4,152			4,241
Operating costs	(2,324)			(2,550)			9			(2,450)			(2,292)			(2,298)			(2,402)
Remediation	(37)			-						(775)			(29)			(70)			(25)
Total costs	(2,361)			(2,550)			7			(3,225)			(2,321)			(2,368)			(2,427)
Underlying profit before impairment	2,162			1,841			17			1,153			2,025			1,784			1,814
Underlying impairment charge	(133)			(309)			57			(160)			(172)			(44)			(57)
Underlying profit	2,029			1,532			32			993			1,853			1,740			1,757
Restructuring	(5)			(4)			(25)			(19)			(6)			(3)			(12)
Volatility and other items	(37)			(11)						(150)			(24)			(41)			(117)
Statutory profit before tax	1,987			1,517			31			824			1,823			1,696			1,628
Tax expense	(577)			(383)			(51)			(124)			(490)			(467)			(413)
Statutory profit after tax	1,410			1,134			24			700			1,333			1,229			1,215
Earnings per share	2.1p			1.7p			0.4p			1.0p			1.9p			1.7p			1.7p
Banking net interest marginA	3.04%			3.03%			1bp			2.97%			2.95%			2.93%			2.95%
Average interest-earning banking assetsA	£460.0bn			£455.5bn			1			£455.1bn			£451.1bn			£449.4bn			£449.1bn
Cost:income ratioA	52.2%			58.1%			(5.9)pp			73.7%			53.4%			57.0%			57.2%
Asset quality ratioA	0.11%			0.27%			(16)bp			0.14%			0.15%			0.05%			0.06%
Return on tangible equityA	15.5%			12.6%			2.9pp			7.1%			15.2%			13.6%			13.3%
	At 30 Jun 2025			At 31 Mar 2025			Change %			At 31 Dec 2024			At 30 Sep 2024			At 30 Jun 2024			At 31 Mar 2024
Underlying loans and advances to customersA,1	£471.0bn			£466.2bn			1			£459.1bn			£457.0bn			£452.4bn			£448.5bn
Customer deposits	£493.9bn			£487.7bn			1			£482.7bn			£475.7bn			£474.7bn			£469.2bn
Loan to deposit ratioA	95%			96%			(1)			95%			96%			95%			96%
CET1 ratio	13.8%			13.5%			0.3pp			14.2%			14.3%			14.1%			13.9%
Pro forma CET1 ratioA,2	13.8%			13.5%			0.3pp			13.5%			14.3%			14.1%			13.9%
UK leverage ratio	5.4%			5.5%			(0.1)pp			5.5%			5.5%			5.4%			5.6%
Risk-weighted assets	£231.4bn			£230.1bn			1			£224.6bn			£223.3bn			£222.0bn			£222.8bn
Wholesale funding	£92.2bn			£89.4bn			3			£92.5bn			£93.3bn			£97.6bn			£99.9bn
Liquidity coverage ratio3	145%			145%						146%			144%			144%			143%
Net stable funding ratio4	127%			128%			(1)pp			129%			129%			130%			130%
Tangible net assets per shareA	54.5p			54.4p			0.1p			52.4p			52.5p			49.6p			51.2p

1    The increases between 31 March 2024 and 30 June 2024 and between 30 September 2024 and 31 December 2024 are net of the impact of the securitisations of primarily legacy Retail mortgages, of £0.9 billion and £1.0 billion respectively.

2    30 June 2025 reflects the interim ordinary dividend received from the Insurance business in July 2025. 31 December 2024 reflects both the full impact of the share buyback announced in respect of 2024 and the ordinary dividend received from the Insurance business in February 2025.

3    The liquidity coverage ratio is calculated as a simple average of month-end observations over the previous 12 months.

4    The net stable funding ratio is calculated as a simple average of month-end observations over the previous four quarter-ends.

 

 

BALANCE SHEET ANALYSIS

 

	At 30 Jun 2025 £bn			At 31 Mar 2025 £bn			Change %		At 31 Dec 2024 £bn			Change %
UK mortgages	317.9			317.1					312.3			2
Credit cards	16.4			15.9			3		15.7			4
UK Retail unsecured loans	9.9			9.5			4		9.1			9
UK Motor Finance1	16.0			15.8			1		15.3			5
Overdrafts	1.2			1.2					1.2
Retail other2	20.2			19.0			6		17.9			13
Business and Commercial Banking	29.1			29.4			(1)		29.7			(2)
Corporate and Institutional Banking	59.7			58.5			2		57.9			3
Central Items3	0.6			(0.2)					-
Underlying loans and advances to customersA	471.0			466.2			1		459.1			3
Retail current accounts	100.6			102.5			(2)		101.3			(1)
Retail savings accounts	213.1			210.1			1		208.2			2
Wealth	9.7			9.8			(1)		10.2			(5)
Commercial Banking	170.2			164.9			3		162.6			5
Central Items	0.3			0.4			(25)		0.4			(25)
Customer deposits	493.9			487.7			1		482.7			2
Total assets	919.3			909.9			1		906.7			1
Total liabilities	872.4			862.1			1		860.8			1
Ordinary shareholders' equity	40.4			40.7			(1)		39.5			2
Other equity instruments	6.3			6.9			(9)		6.2			2
Non-controlling interests	0.2			0.2					0.2
Total equity	46.9			47.8			(2)		45.9			2
Ordinary shares in issue, excluding own shares	59,938m			60,459m			(1)		60,491m			(1)

1    UK Motor Finance balances on an underlying basisA exclude a finance lease gross up. See page 29.

2    Within underlying loans and advances, Retail other includes the European and Wealth businesses.

3    Central Items includes central fair value hedge accounting adjustments.

 

GROUP RESULTS - STATUTORY BASIS

The results below are prepared in accordance with the recognition and measurement principles of IFRS® Accounting Standards. The underlying basis results are shown on page 3.

 

 

 

Summary income statement	Half-year to 30 Jun 2025 £m			Half-year to 30 Jun 2024 £m			Change %		Half-year to 31 Dec 2024 £m			Change %
Net interest income	6,478			6,046			7		6,231			4
Other income1	2,908			2,830			3		2,896
Total income1	9,386			8,876			6		9,127			3
Operating expenses	(5,440)			(5,452)					(6,149)			12
Impairment	(442)			(100)					(331)			(34)
Profit before tax	3,504			3,324			5		2,647			32
Tax expense	(960)			(880)			(9)		(614)			(56)
Profit after tax	2,544			2,444			4		2,033			25
Profit attributable to ordinary shareholders	2,274			2,145			6		1,778			28
Profit attributable to other equity holders	245			269			(9)		229			7
Profit attributable to non-controlling interests	25			30			(17)		26			(4)
Profit after tax	2,544			2,444			4		2,033			25
Ordinary shares in issue (weighted-average - basic)	60,320m			63,453m			(5)		61,385m			(2)
Basic earnings per share	3.8p			3.4p			0.4p		2.9p			0.9p