Company: LLOBF
Filing Date: 2025-02-20
Form Type: 6-K
Source: 0001654954-25-001688
Chunk: 36

Company: Lloyds Banking Group plc
Filing Date: 2025-02-20
Form: 6-K
Chunk 36
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        -956 |     |         - |     |              -956 |     | Operating lease depreciation   |
| Total income, net of net finance expense in respect of insurance 
 and investment contracts                                         |  18,629 |     |        -924 |     |       227 |     |            17,932 |     | Net income                     |
| Operating expenses4                                              | -10,823 |     |       1,235 |     |      -227 |     |            -9,815 |     | Total costs4                   |
| Impairment charge                                                |    -303 |     |          -5 |     |         - |     |              -308 |     | Underlying impairment charge   |
| Profit before tax                                                |   7,503 |     |         306 |     |         - |     |             7,809 |     | Underlying profit              |

1 In the year ended 31 December 2024 this comprised the effects of market volatility and asset sales (losses of £144 million); the amortisation of purchased intangibles (£81 million); restructuring costs (£40 million); and fair value unwind (losses of £107 million).

2 In the year ended 31 December 2023 this comprised the effects of market volatility and asset sales (gains of £35 million); the amortisation of purchased intangibles (£80 million); restructuring costs (£154 million); and fair value unwind (losses of £107 million).

3 Under IFRS 17, expenses which are directly associated with the fulfilment of insurance contracts are reported as part of the insurance service result within statutory other income. On an underlying basis these expenses remain within costs.

4 Statutory operating expenses includes operating lease depreciation. On an underlying basis operating lease depreciation is included in net income.

ALTERNATIVE PERFORMANCE MEASURES (continued)

|                                                          |   2024 |     |   2023 |
| Asset quality ratioA                                     |        |     |        |
| Underlying impairment (charge) credit (£m)               |   -433 |     |   -308 |
| Remove non-customer underlying impairment credit         
 (£m)                                                     |    -23 |     |    -13 |
| Underlying customer related impairment (charge) credit   
 (£m)                                                     |   -456 |     |   -321 |
| Loans and advances to customers (£bn)                    |  459.9 |     |  449.7 |
| Remove finance lease