Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 8

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 8
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 India. Alongside we continue to harness the power of GenAI with c.30 major live use cases, including an award-winning app function.

We are delivering at pace. As we look forward we are confident in our 2026 ambitions to generate higher, more sustainable returns for shareholders.

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 points 1

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 points 1

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

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

### SUMMARY OF GROUP RESULTS

#### Statutory results
Income statement

The Group's statutory profit before tax for the first half of 2025 was £3,504 million, 5% higher than in the first half of 2024. This was driven by higher total income, partially offset by a higher impairment charge. Profit after tax was £2,544 million and earnings per share was 3.8 pence (half-year to 30 June 2024: £2,444 million and 3.4 pence respectively).

Total income for the half-year of 2025 was £9,386 million, an increase of 6% on the same period in 2024 (half-year to 30 June 2024: £8,876 million). Net interest income of £6,478 million was up 7% on the prior year (half-year to 30 June 2024: £6,046 million), driven by higher average interest-earning assets and a higher margin, which benefitted from a growing structural hedge contribution as balances have been reinvested in a higher rate environment, partially offset by continued asset margin compression and deposit churn headwinds.

Other income increased by 3% to £2,908 million (half-year to 30