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

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 25
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 reflecting increases from inflationary pressures, strategic investment including planned higher severance front-loaded into the first quarter of 2025 and business growth costs, partially offset by cost savings. Remediation costs of £41 million with movements across a small number of rectification programmes

● Underlying impairment charge of £342 million, supported by strong portfolio performance particularly in UK mortgages. The net charge is higher than in the first half of 2024, which benefitted from an improved economic outlook and a one-off release of judgemental adjustments for inflation and interest rates

● Loans and advances to customers of £381.6 billion, up £10.1 billion, with growth across Retail products including £5.6 billion in UK mortgages driven by strong demand in the first quarter and growth across UK Retail unsecured loans, credit cards, UK Motor Finance and the European retail business

● Customer deposits of £323.4 billion, up £3.7 billion with inflows to limited withdrawal and fixed term Savings products, including a strong performance throughout the ISA season, partly offset by a reduction in current account balances driven by continued flows to savings including ISAs

● Risk-weighted assets up 2% in the first half, given strong lending growth, partly offset by optimisation activity

1 Bank of England ISA market data and Lloyds Banking Group ISA balance uplift March 2025 to May 2025

DIVISIONAL RESULTS (continued)

Retail (continued)

Retail 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 |     | Change 
      % |
| Underlying net interest income           |        4,709 |     |        4,430 |     |      6 |     |        4,500 |     |      5 |
| Underlying                               
 other income1                            |        1,276 |     |        1,133 |     |     13 |     |        1,221 |     |      5 |
| Operating lease depreciation             |         -706 |     |         -677 |     |     -4 |     |         -642 |     |    -10 |
| Net income                               |        5,279 |     |        4,886 |