Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 32

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 32
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38 |
| Net income                            |          336 |     |          296 |     |     14 |     |          457 |     |    -26 |
| Operating costs1                      |          -92 |     |         -121 |     |     24 |     |          -79 |     |    -16 |
| Remediation                           |            6 |     |           -4 |     |        |     |          -22 |     |        |
| Total costs                           |          -86 |     |         -125 |     |     31 |     |         -101 |     |     15 |
| Underlying profit before impairment   |          250 |     |          171 |     |     46 |     |          356 |     |    -30 |
| Underlying impairment (charge) credit |           -1 |     |            3 |     |        |     |            - |     |        |
| Underlying profit                     |          249 |     |          174 |     |     43 |     |          356 |     |    -30 |

1 In the half-year to 30 June 2025, for segment reporting, the Group revised its allocation methodology. Certain divisional variable payment related costs are now included within underlying other income; comparative figures have been represented on a consistent basis. Total Group figures are unaffected by this change.

Equity Investments and Central Items includes the Group's equity investments businesses, including Lloyds Development Capital (LDC), the Group's share of the Business Growth Fund (BGF) and the Housing Growth Partnership (HGP), as well as Lloyds Living, which together comprise LBG Investments. This division also includes income and expenses not attributed to other divisions, including residual underlying net interest income after transfer pricing (covering, among other things, the recharging to other divisions of the Group's external AT1 distributions) and the unwind of hedging costs relating to historic gilt sales.

Net income of £336 million was 14% higher compared to the first half of 2024, with higher underlying other income partly offset by lower underlying net interest income. Underlying other income includes £264 million (half-year to 30 June 2024: £193 million) generated by the Group's equity and direct investment businesses, increasing as a result of strong income growth from Lloyds Living (up £42 million) and higher income from LDC of £195 million (half-year to