Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 9

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 9
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 June 2024: £2,830 million), with higher other operating income, partly offset by lower net fee and commission income. Other operating income increased by 12% to £1,015 million (half-year to 30 June 2024: £907 million) as a result of fleet growth and higher average vehicle rental values in UK Motor Finance within Retail as well as current account earnings. Alongside Insurance, Pensions and Investments which benefitted from 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. Net fee and commission income was £856 million (half-year to 30 June 2024: £890 million).

Total operating expenses of £5,440 million were broadly stable. Within this were higher costs reflecting inflationary pressures, strategic investment including planned higher severance front-loaded into the first quarter of 2025 and business growth costs, offset by cost savings and continued cost discipline alongside a lower remediation charge. Operating lease depreciation was higher due to fleet growth, the depreciation of higher value vehicles and declines in used electric car prices over the last 12 months. Used car price declines in the second quarter of 2025 were offset by a number of mitigating management actions, including used car leasing and remarketing agreements.

A remediation charge of £37 million was recognised by the Group in the first half of 2025 (half-year to 30 June 2024: £95 million), across a small number of rectification programmes. There have been no further charges to the provision relating to motor finance commission arrangements.

Asset quality remained robust in the first half of 2025. The impairment charge was £442 million, up from £100 million in the half-year to 30 June 2024 which benefitted from a large credit from improvements in the Group's economic outlook. The charge reflects strong performance across Retail portfolios, more than offset by a higher charge in Commercial Banking, from a small number of individual cases moving to default in the period.

The Group recognised a tax expense of £960 million in the first half of 2025 (half-year to 30 June 2024: £880 million), representing an effective tax rate of 27.4%.

SUMMARY OF GROUP RESULTS (continued)

Statutory results (continued)

Balance sheet

Total assets were £12,585 million higher at £919,282 million at