Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 4

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 4
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 £ 856 million ( half-year to 30 June 2024 : £ 890 million). Total operating expenses of £ 5,440 million were broadly stable. Within this were higher costs reflecting inflationary pressures, strategic investment including planned higher severance front-loaded into the first quarter of 2025 and business growth costs, offset by cost savings and continued cost discipline alongside a lower remediation charge. Operating lease depreciation was higher due to fleet growth, the depreciation of higher value vehicles and declines in used electric car prices over the last 12 months . Used car price declines in the second quarter of 2025 were offset by a number of mitigating management actions, including used car leasing and remarketing agreements . A remediation charge of £ 37 million was recognised by the Group in the first half of 2025 (half-year to 30 June 2024: £ 95 million), across a small number of remediation programmes. There have been no further charges to the provision relating to motor finance commission arrangements. Asset quality remained robust in the first half of 2025. The impairment charge was £ 442 million, up from £ 100 million in the half-year to 30 June 2024 which benefitted from a large credit from improvements in the Group’s economic outlook. The charge reflects strong performance across Retail portfolios, more than offset by a higher charge in Commercial Banking, from a small number of individual cases moving to default in the period. The Group recognised a tax expense of £ 960 million in the first half of 2025 (half-year to 30 June 2024: £ 880 million), representing an effective tax rate of 27.4%.

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| LLOYDS BANKING GROUP PLC | 2025HALF-YEAR RESULTS |

FINANCIAL REVIEW (continued) Balance sheet Total assets were £ 12,585 million higher at £ 919,282 million at 30 June 2025 (31 December 2024 : £ 906,697 million). Financial assets at amortised cost were £ 6,460 million higher at £ 538,237 million (31 December 2024 : £ 531,777 million) supported by increases in loans and advances to customers. This included growth of £ 5,611 million in UK mortgages and growth across UK Retail unsecured loans, credit cards, UK Motor Finance and the European retail business . Lending balances increased by £ 1.2 billion in Commercial Banking, with growth in Institutional balances