Company: LLOBF
Filing Date: 2025-05-01
Form Type: 6-K
Source: 0001160106-25-000018
Chunk: 3

Company: Lloyds Banking Group plc
Filing Date: 2025-05-01
Form: 6-K
Chunk 3
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FINANCIAL REVIEW Income statement The Group’s profit before tax for the first three months of 2025 was £ 1,517 million, 7% lower than the same period in 2024 . This was driven by higher total income more than offset by higher operating expenses and a higher impairment charge. Profit after tax was £ 1,134 million and earnings per share was 1.7 pence ( three months to 31 March 2024 : £ 1,215 million and 1.7 pence respectively). Total income for the first three months of 2025 was £ 4,695 million, an increase of 7% on the same period in 2024 ( three months to 31 March 2024 : £ 4,387 million). Net interest income of £ 3,204 million was up 5% on the prior year ( three months to 31 March 2024 : £ 3,045 million), driven by a higher margin and higher average interest-earning assets. Other income increased by 11% to £ 1,491 million ( three months to 31 March 2024 : £ 1,342 million). Within Retail, there was improved performance in UK Motor Finance, with fleet growth and higher average vehicle rental values , while Insurance, Pensions and Investments benefitted from higher general insurance income net of claims . Total operating expenses of £ 2,868 million were 6% higher than in the prior year. This reflects higher costs, combining inflationary pressures, timing of strategic investment including planned higher severance front-loaded into the first quarter of 2025 and business growth costs, partly offset by cost savings and continued cost discipline . This is alongside higher operating lease depreciation, as a result of fleet growth, the depreciation of higher value vehicles and declines in used electric car prices over 2024 . No net remediation charge was recognised by the Group in the first three months of 2025 (three months to 31 March 2024: £ 25 million). There have been no further charges relating to motor finance commission arrangements. The Supreme Court heard the appeal of the Wrench, Johnson and Hopcraft decision in early April and has stated that it is likely to produce its judgment in July. The FCA has indicated that the decision will inform its next steps in the discretionary commission arrangements (DCA) review and that it will confirm within six weeks of the decision if it is proposing a redress scheme and if so