Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 27

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 27
---

● Increased market share year-on-year in Structured Finance by 8 percentage points and UK issuer Debt Capital Markets issuance by 3 percentage points 3

● Launched a market-leading foreign exchange client algorithmic solution. Delivered a 17% year-on-year increase in foreign exchange volumes

● First tokenised collateral transfer on public blockchain in the UK, paving the way for digitised collateral

Financial performance

● Underlying net interest income of £1,766 million, up 4% on the prior year, reflecting strong portfolio management across both assets and liabilities within the lower rate environment

● Underlying other income decreased 2% to £926 million, with higher transaction banking income more than offset by lower loan markets activity

● Operating costs up 3% reflecting inflationary pressures, strategic investment as a result of planned higher severance front-loaded into the first quarter of 2025 and business growth costs, partly offset by cost savings. Zero net remediation charge

● Underlying impairment charge of £100 million, higher than prior year, reflecting higher Stage 3 charges and modest deterioration in the economic outlook

● Customer lending 1% higher at £88.8 billion reflecting growth in Institutional balances alongside growth in securitised products, partially offset by foreign exchange movements and government-backed lending repayments within Business and Commercial Banking. Business and Commercial Banking balances grew in the year excluding government-backed lending repayments

● Customer deposits 5% higher at £170.2 billion, with growth in targeted sectors and higher balances partly as a result of market uncertainty

● Risk-weighted assets 4% higher at £76.6 billion, reflecting lending growth in Corporate and Institutional Banking partially offset by optimisation activity

1 Merchant Payments Ecosystem 2025 event in Berlin.

2 In line with the Group's Sustainable Financing Framework; sustainable financing since 1 January 2024.

3 LSEG Workspace; Structured Finance (excluding collateralised debt obligations) - sterling, All Investment Grade bonds (excluding Sovereign, supranational and agency) - UK issuers (sterling only).

DIVISIONAL RESULTS (continued)

Commercial Banking (continued)

Commercial Banking performance summary A

|                                          | Half-year to 
       30 Jun 
         2025 
           £m |     | Half-year to 
       30 Jun 
         2024 
           £m |     | Change 
      % |     | Half-year to 
       31 Dec 
         2024 
           £m |     |