Company: LLOBF
Filing Date: 2025-10-23
Form Type: 6-K
Source: 0001654954-25-012079
Chunk: 9

Company: Lloyds Banking Group plc
Filing Date: 2025-10-23
Form: 6-K
Chunk 9
---
 repayments of £1.1 billion of government-backed lending within Business and Commercial Banking. Underlying loans and advances increased by £6.1 billion in the third quarter, with growth across Retail portfolios, primarily UK mortgages, alongside increased lending in Corporate and Institutional Banking, again partially offset by government-backed lending repayments within Business and Commercial Banking.

REVIEW OF PERFORMANCE (continued)

Balance sheet (continued)

Customer deposits of £496.7 billion increased significantly in the first nine months of the year, by £14.0 billion (or 3%). Retail deposits were up £4.0 billion in the period, including £3.5 billion growth in Retail savings accounts, as a result of net inflows to limited withdrawal and fixed term deposits given the Group’s strong performance throughout the ISA season, and growth in European retail balances. This was alongside £0.5 billion growth in current accounts, due to strength in customer income and subdued spend. Commercial Banking deposits were up £10.0 billion in the year to date (31 December 2024: £162.6 billion), resulting from growth in targeted sectors.

In the third quarter, customer deposits were up £2.8 billion. Retail deposits increased by £0.3 billion, with strength in current accounts partly offset by modest reductions in fixed term deposits, following post-ISA season pricing decisions. Commercial Banking deposits increased by £2.4 billion in the third quarter, resulting from growth in targeted sectors. Non-interest bearing current accounts in Commercial Banking were positive in the third quarter.

The Group saw growth of £3.7 billion net new money during the first nine months of 2025 in Insurance, Pensions and Investments and Wealth open book assets under administration (AuA). In total, open book AuA stand at £221 billion at 30 September 2025.

The Group has a large, high quality liquid asset portfolio held mainly in cash and government bonds, with all assets hedged for interest rate risk. The Group’s liquid assets continue to significantly exceed regulatory requirements and internal risk appetite, with a strong, stable liquidity coverage ratio of 145% at 30 September 2025 (31 December 2024: 146%) and a net stable funding ratio of 126% (31 December 2024: 129%). The loan to deposit ratio of 96%, stable compared to 31 December 2024, continues to reflect a robust funding and liquidity position, with significant capacity to grow lending.

The underlying expected credit loss (ECL) allowance has