Company: LLOBF
Filing Date: 2025-05-01
Form Type: 6-K
Source: 0001654954-25-004952
Chunk: 7

Company: Lloyds Banking Group plc
Filing Date: 2025-05-01
Form: 6-K
Chunk 7
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 performance in Retail more than offsetting a higher charge in Commercial Banking. The Group continues to expect the asset quality ratio to be c.25 basis points in 2025.

Restructuring costs for the first three months of 2025 were £4 million (three months to 31 March 2024: £12 million). Volatility and other items were a net cost of £11 million for the first three months (three months to 31 March 2024: net cost of £117 million). This included £20 million for the amortisation of purchased intangibles (three months to 31 March 2024: £20 million) and £21 million relating to the usual fair value unwind (three months to 31 March 2024: £26 million), alongside positive market volatility of £30 million (three months to 31 March 2024: negative market volatility of £71 million).

The return on tangible equity for the first quarter was 12.6% (three months to 31 March 2024: 13.3%). The Group continues to expect the return on tangible equity for 2025 to be c.13.5%.

Tangible net assets per share at 31 March 2025 were 54.4 pence, up 2.0 pence in the quarter (31 December 2024: 52.4 pence), from attributable profit alongside unwind of the cash flow hedge reserve.

The Group has commenced the share buyback announced in February 2025, with c.0.3 billion shares repurchased as at 31 March 2025.

REVIEW OF PERFORMANCE (continued)

#### Balance sheet
The Group saw strong lending growth in the first quarter of 2025 with underlying loans and advances to customers increasing by £7.1 billion from the end of 2024 to £466.2 billion. This included growth of £4.8 billion in UK mortgages and growth across UK Retail unsecured loans, credit cards, UK Motor Finance and the European retail business. Lending balances remained broadly stable in Commercial Banking, with growth in Institutional balances partly offset by repayments of £0.5 billion of government-backed lending.

Customer deposits of £487.7 billion increased significantly in the quarter by £5.0 billion. Retail deposits were up £2.7 billion in the period, driven by net inflows to limited withdrawal and fixed term deposits alongside higher current account balances, as a result of the Group’s strong propositions and growing customer incomes. Commercial