Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 18

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 18
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 lending in Corporate and Institutional Banking, reflecting growth in securitised products partially offset by foreign exchange movements and government-backed lending repayments within Business and Commercial Banking.

Customer deposits of £493.9 billion increased significantly in the first half of the year, by £11.2 billion. Retail deposits were up £3.7 billion in the period, driven by net inflows to limited withdrawal and fixed term deposits as a result of a strong performance throughout the ISA season, with over 375,000 cash ISA accounts opened. Commercial Banking deposits were up £7.6 billion with targeted growth, alongside higher balances partly as a result of market uncertainty. Customer deposits increased by £6.2 billion in the second quarter. This included £5.3 billion in Commercial Banking driven by growth in targeted sectors and £1.0 billion in Retail from strong performance in UK Savings driving inflows throughout the ISA season, partially offset by outflows from current accounts, including to UK savings.

The Group delivered £3.1 billion net new money during the first half of 2025 in Insurance, Pensions and Investments and Wealth open book assets under administration (AuA). In total, open book AuA stand at c.£208 billion at 30 June 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% (31 December 2024: 146%) and net stable funding ratio of 127% (31 December 2024: 129%). The loan to deposit ratio of 95%, 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 reduced slightly to £3.5 billion (31 December 2024: £3.7 billion) in the period. The uplift from the base case to probability-weighted ECL is £0.4 billion (31 December 2024: £0.4 billion). The ECL allowance includes judgemental adjustments which increased the ECL by £183 million (31 December 2024: £15 million decrease to ECL). The increase in judgemental adjustments in the period was primarily due to the removal of negative ECL adjustments previously held for loss given default adjustments in Commercial Banking where model enhancements have removed