Company: LLOBF
Filing Date: 2025-02-20
Form Type: 6-K
Source: 0001654954-25-001688
Chunk: 14

Company: Lloyds Banking Group plc
Filing Date: 2025-02-20
Form: 6-K
Chunk 14
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ows to limited withdrawal and fixed term deposits, partly offset by a £1.4 billion reduction in current account balances. Commercial Banking deposits were stable in the year, reflecting growth in target sectors offset by an expected outflow in the third quarter.

Total equity of £45.9 billion at 31 December 2024 decreased from £47.4 billion at 31 December 2023. The movement reflected attributable profit for the year and issuance of an AT1 capital instrument in October 2024, which was more than offset by the dividends paid in May 2024 and September 2024, the impact of redemption of AT1 capital instruments in June 2024 and December 2024 and the impact of the share buyback programme in respect of 2023.

SUMMARY OF GROUP RESULTS (continued)

#### Income statement (underlying basis) A
The Group's underlying profit was £6,343 million in 2024, a reduction of 19 per cent compared to £7,809 million in the prior year with lower net income, higher operating costs and higher remediation and underlying impairment charges. Underlying profit of £993 million in the fourth quarter was down 46 per cent compared to the third quarter of 2024, with net income slightly up, more than offset by higher operating costs, including the annual Bank Levy and a charge for the potential impacts of motor finance commission arrangements.

Net income A

|                                          |     2024 
       £m |     |     2023 
       £m |     | Change 
      % |
| Underlying net interest income           |   12,845 |     |   13,765 |     |     -7 |
| Underlying other income                  |    5,597 |     |    5,123 |     |      9 |
| Operating lease depreciation1            |   -1,325 |     |     -956 |     |    -39 |
| Net incomeA                              |   17,117 |     |   17,932 |     |     -5 |
| Banking net interest marginA             |    2.95% |     |    3.11% |     | (16)bp |
| Average interest-earning banking assetsA | £451.2bn |     | £453.3bn |     |        |

1 Net of profits on disposal of operating lease assets of £59 million (31 December 2023: £93 million).

Net income of £17