Company: LLOBF
Filing Date: 2025-02-20
Form Type: 6-K
Source: 0001654954-25-001688
Chunk: 4

Company: Lloyds Banking Group plc
Filing Date: 2025-02-20
Form: 6-K
Chunk 4
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7 billion

● Total capital returns in respect of 2024 of up to £3.6 billion, are equivalent to c.9 per cent 3 of the Group's market capitalisation value**

#### 2025 guidance
Based on our current macroeconomic assumptions, for 2025 the Group expects:

● Underlying net interest income of c.£13.5 billion

● Operating costs of c.£9.7 billion

● Asset quality ratio of c.25 basis points

● Return on tangible equity of c.13.5 per cent

● Capital generation of c.175 basis points 4

#### 2026 guidance
Based on the expected macroeconomic environment and confidence in our strategy, the Group maintains its guidance for 2026:

● Cost:income ratio of less than 50 per cent

● Return on tangible equity of greater than 15 per cent

● Capital generation of greater than 200 basis points 4

● To pay down to a CET1 ratio of c.13.0 per cent

1 Excluding capital distributions. Inclusive of the ordinary dividend received from the Insurance business in February 2025.

2 Includes both the full impact of the intended share buyback announced in respect of 2024 and the ordinary dividend received from the Insurance business in February 2025.

3 Market capitalisation as at 14 February 2025.

4 Excluding capital distributions. Inclusive of ordinary dividends received from the Insurance business in February of the following year.

<div align='center'>**INCOME STATEMENT (UNDERLYING BASIS) A AND KEY BALANCE SHEET METRICS**</div>

|                                          |     2024 
       £m |     |     2023 
       £m |     |  Change 
       % |
| Underlying net interest income           |   12,845 |     |   13,765 |     |      -7 |
| Underlying other income                  |    5,597 |     |    5,123 |     |       9 |
| Operating lease depreciation             |   -1,325 |     |     -956 |     |     -39 |
| Net income                               |   17,117 |     |   17,932 |     |      -5 |
| Operating costs                          |   -9,442 |     |   -9,140 |     |      -3 |
| Remediation                              |     -899 |     |     -675 |     |