Company: LLOBF
Filing Date: 2025-05-01
Form Type: 6-K
Source: 0001654954-25-004952
Chunk: 1

Company: Lloyds Banking Group plc
Filing Date: 2025-05-01
Form: 6-K
Chunk 1
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 Robust return on tangible equity of 12.6% (three months to 31 March 2024: 13.3%)

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Underlying net interest income of £3.3 billion, up 3% year on year and up 1% versus the fourth quarter of 2024. This reflected a banking net interest margin of 3.03%, up 8 basis points year on year (up 6 basis points compared to the fourth quarter of 2024), alongside higher average interest-earning banking assets of £455.5 billion

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Underlying other income of £1.5 billion, 8% higher than the prior year and 1% higher than the fourth quarter of 2024, driven across businesses by strengthening customer activity and the benefit of strategic initiatives

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Operating lease depreciation of £355 million, higher than the £283 million in the first quarter of 2024 as a result of fleet growth, the depreciation of higher value vehicles and declines in used electric car prices over 2024

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Operating costs of £2.6 billion, up 6%, combining inflationary pressures, timing of strategic investment including planned higher severance front-loaded into the first quarter of 2025 and business growth costs, partly offset by cost savings and continued cost discipline

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Resilient asset quality with underlying impairment charge of £309 million and an asset quality ratio of 27 basis points. Excluding the impact of updates to the economic outlook, the asset quality ratio was 24 basis points. The portfolio remains well-positioned with stable and benign credit performance in the quarter

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Strong growth in lending and deposits. Underlying loans and advances to customers increased by £7.1 billion in the quarter to £466.2 billion, led by UK mortgages growth of £4.8 billion. Customer deposits increased in the quarter by £5.0 billion to £487.7 billion, with £2.7 billion growth in Retail and £2.3 billion in Commercial Banking

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Risk-weighted assets of £230.1 billion, up £5.5 billion in the quarter, reflecting strong lending growth and a temporary c.£2.5 billion increase primarily due to hedging activity expected to reverse by the third quarter

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Capital generation of 27 basis points; strong underlying banking build, impacted by front-loaded severance and temporary risk-weighted asset impacts primarily from hedging activity. CET1 ratio of 13.5%

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Tangible