Company: LLOBF
Filing Date: 2025-10-23
Form Type: 6-K
Source: 0001654954-25-012079
Chunk: 8

Company: Lloyds Banking Group plc
Filing Date: 2025-10-23
Form: 6-K
Chunk 8
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uring costs for the first nine months of 2025 were £16 million (nine months to 30 September 2024: £21 million).

Volatility and other items were a net loss of £157 million for the first nine months of 2025 (nine months to 30 September 2024: net loss of £182 million). This included the usual charges for the amortisation of purchased intangibles (£61 million) and the usual fair value unwind (£45 million). This was alongside a loss from market and other volatility of £51 million, including negative market volatility, partially offset by the gain on sale of the Group’s bulk annuities portfolio to Rothesay Life plc which completed in the second quarter.

The return on tangible equity for the first nine months of the year was 11.9%, or 14.6% excluding the third quarter charge for motor finance commission arrangements (nine months to 30 September 2024: 14.0%). The Group now expects the return on tangible equity for 2025 to be c.12% (c.14% excluding the third quarter motor finance charge).

Tangible net assets per share at 30 September 2025 were 55.0 pence, up 2.6 pence in the first nine months of the year (31 December 2024: 52.4 pence) and up 0.5 pence in the third quarter. The increase resulted from attributable profit, the unwind of the cash flow hedging reserve and a reduction in the number of shares in issue due to the ongoing share buyback. The third quarter benefitted from the unwind of an accrual for the ordinary share buyback in the second quarter, partially offset by capital distributions and the provision for motor finance.

The Group continued the share buyback announced in February 2025, with c.1.8 billion shares repurchased as at 30 September 2025, equivalent to £1.4 billion.

#### Balance sheet
The Group saw strong lending growth in the first nine months of 2025, with underlying loans and advances to customers increasing by £18.0 billion (or 4%) to £477.1 billion. This included growth of £8.7 billion in UK mortgages and growth across UK Retail unsecured loans, credit cards, UK Motor Finance and the European retail business. Lending balances increased by £2.5 billion in Commercial Banking, with higher Institutional balances alongside growth in securitised products, partially offset by