Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 14

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 14
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 rental values as well as current account earnings. Insurance, Pensions and Investments underlying other income was up 6% from strong business performance including higher general insurance income net of claims and strengthening income in Workplace. Growth in Equity Investments and Central items was driven by the Group's equity and direct investment businesses, with strong income growth from Lloyds Living and higher income from LDC. This was partly offset by a 2% reduction in Commercial Banking, with higher transaction banking income more than offset by lower loan markets activity.

Compared to the first quarter of 2025, underlying other income in the second quarter was up 4%, supported in Retail by continued UK Motor Finance growth and personal current account performance, in Commercial Banking primarily from improved trading conditions and in Insurance, Pensions and Investments from higher general insurance income including seasonally lower weather event claims.

Operating lease depreciation of £710 million in the first half of 2025 was 5% higher than in the prior year (half-year to 30 June 2024: £679 million), due to fleet growth, the depreciation of higher value vehicles and declines in used electric car prices over the last 12 months. The Group has been progressing a number of market and customer initiatives to improve performance and reduce volatility in operating lease depreciation, including used car leasing and remarketing agreements. Together these measures helped to offset used car price declines in the second quarter, resulting in stable operating lease depreciation compared to the first quarter.

| Total costs        | Half-year to 30 Jun 
                2025 
                  £m |     | Half-year to 30 Jun 
                2024 
                  £m |     |  Change 
       % |     | Half-year to 31 Dec 
                2024 
                  £m |     |  Change 
       % |
| Operating costsA   |               4,874 |     |               4,700 |     |      -4 |     |               4,742 |     |      -3 |
| Remediation        |                  37 |     |                  95 |     |      61 |     |                 804 |     |      95 |
| Total costsA       |               4,911 |     |               4,795 |     |      -2 |     |               5,546 |     |      11 |
| Cost:income ratioA |               55.1% |     |               57.1% |     | (2.0)pp