REG - Lloyds Bank Plc Lloyds Banking Group - 2025 Half-Year Results
24/07/2025 11:30
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RNS Number : 4116S Lloyds Bank PLC 24 July 2025
Lloyds Bank plc
2025 Half-Year Results
24 July 2025
Member of the Lloyds Banking Group
CONTENTS
Forward-looking statements (#Section3) 1
Statutory information (IFRS) (#Section4)
Condensed consolidated balance sheet (unaudited) (#Section5) 2
Condensed consolidated income statement (unaudited) (#Section6) 2
Financial review (#Section7) 3
Risk management
Principal risks and uncertainties (#Section13) 5
Capital risk (#Section14) 6
Credit risk (#Section20) 10
Liquidity risk (#Section31) 20
Statutory information
Condensed consolidated half-year financial statements (unaudited) (#Section36) 21 (#Section35)
Condensed consolidated income statement (unaudited) (#Section36) 22
Condensed consolidated statement of comprehensive income (unaudited) 23
(#Section37)
Condensed consolidated balance sheet (unaudited) (#Section38) 24
Condensed consolidated statement of changes in equity (unaudited) (#Section39) 25
Condensed consolidated cash flow statement (unaudited) (#Section40) 28
Notes to the condensed consolidated half-year financial statements (unaudited) 29
(#Section41)
Statement of directors' responsibilities (#Section57) 52 (#Section57)
Independent review report to Lloyds Bank Plc (#Section58) 53 (#Section58)
Contacts (#Section59) 54 (#Section59)
FORWARD LOOKING STATEMENTS
This document contains certain forward-looking statements within the meaning
of Section 21E of the US Securities Exchange Act of 1934, as amended, and
section 27A of the US Securities Act of 1933, as amended, with respect to the
business, strategy, plans and/or results of Lloyds Bank plc together with its
subsidiaries (the Lloyds Bank Group) and its current goals and expectations.
Statements that are not historical or current facts, including statements
about the Lloyds Bank Group's or its directors' and/or management's beliefs
and expectations, are forward-looking statements. Words such as, without
limitation, 'believes', 'achieves', 'anticipates', 'estimates', 'expects',
'targets', 'should', 'intends', 'aims', 'projects', 'plans', 'potential',
'will', 'would', 'could', 'considered', 'likely', 'may', 'seek', 'estimate',
'probability', 'goal', 'objective', 'deliver', 'endeavour', 'prospects',
'optimistic' and similar expressions or variations on these expressions are
intended to identify forward-looking statements. These statements concern or
may affect future matters, including but not limited to: projections or
expectations of the Lloyds Bank Group's future financial position, including
profit attributable to shareholders, provisions, economic profit, dividends,
capital structure, portfolios, net interest margin, capital ratios, liquidity,
risk-weighted assets (RWAs), expenditures or any other financial items or
ratios; litigation, regulatory and governmental investigations; the Lloyds
Bank Group's future financial performance; the level and extent of future
impairments and write-downs; the Lloyds Bank Group's ESG targets and/or
commitments; statements of plans, objectives or goals of the Lloyds Bank Group
or its management and other statements that are not historical fact and
statements of assumptions underlying such statements. By their nature,
forward-looking statements involve risk and uncertainty because they relate to
events and depend upon circumstances that will or may occur in the future.
Factors that could cause actual business, strategy, targets, plans and/or
results (including but not limited to the payment of dividends) to differ
materially from forward-looking statements include, but are not limited to:
general economic and business conditions in the UK and internationally
(including in relation to tariffs); imposed and threatened tariffs and changes
to global trade policies; acts of hostility or terrorism and responses to
those acts, or other such events; geopolitical unpredictability; the war
between Russia and Ukraine; the escalation of conflicts in the Middle East;
the tensions between China and Taiwan; political instability including as a
result of any UK general election; market related risks, trends and
developments; changes in client and consumer behaviour and demand; exposure to
counterparty risk; the ability to access sufficient sources of capital,
liquidity and funding when required; changes to the Lloyds Bank Group's or
Lloyds Banking Group plc's credit ratings; fluctuations in interest rates,
inflation, exchange rates, stock markets and currencies; volatility in credit
markets; volatility in the price of the Lloyds Bank Group's securities;
natural pandemic and other disasters; risks concerning borrower and
counterparty credit quality; risks affecting defined benefit pension schemes;
changes in laws, regulations, practices and accounting standards or taxation;
changes to regulatory capital or liquidity requirements and similar
contingencies; the policies and actions of governmental or regulatory
authorities or courts together with any resulting impact on the future
structure of the Lloyds Bank Group; risks associated with the Lloyds Bank
Group's compliance with a wide range of laws and regulations; assessment
related to resolution planning requirements; risks related to regulatory
actions which may be taken in the event of a bank or Lloyds Bank Group or
Lloyds Banking Group failure; exposure to legal, regulatory or competition
proceedings, investigations or complaints; failure to comply with anti-money
laundering, counter terrorist financing, anti-bribery and sanctions
regulations; failure to prevent or detect any illegal or improper activities;
operational risks including risks as a result of the failure of third party
suppliers; conduct risk; technological changes and risks to the security of IT
and operational infrastructure, systems, data and information resulting from
increased threat of cyber and other attacks; technological failure; inadequate
or failed internal or external processes or systems; risks relating to ESG
matters, such as climate change (and achieving climate change ambitions) and
decarbonisation, including the Lloyds Bank Group's or the Lloyds Banking
Group's ability along with the government and other stakeholders to measure,
manage and mitigate the impacts of climate change effectively, and human
rights issues; the impact of competitive conditions; failure to attract,
retain and develop high calibre talent; the ability to achieve strategic
objectives; the ability to derive cost savings and other benefits including,
but without limitation, as a result of any acquisitions, disposals and other
strategic transactions; inability to capture accurately the expected value
from acquisitions; and assumptions and estimates that form the basis of the
Lloyds Bank Group's financial statements. A number of these influences and
factors are beyond the Lloyds Bank Group's control. Please refer to the latest
Annual Report on Form 20-F filed by Lloyds Bank plc with the US Securities and
Exchange Commission (the SEC), which is available on the SEC's website at
www.sec.gov, for a discussion of certain factors and risks. Lloyds Bank plc
may also make or disclose written and/or oral forward-looking statements in
other written materials and in oral statements made by the directors, officers
or employees of Lloyds Bank plc to third parties, including financial
analysts. Except as required by any applicable law or regulation, the
forward-looking statements contained in this document are made as of today's
date, and the Lloyds Bank Group expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained in this document whether as a result of
new information, future events or otherwise. The information, statements and
opinions contained in this document do not constitute a public offer under any
applicable law or an offer to sell any securities or financial instruments or
any advice or recommendation with respect to such securities or financial
instruments.
STATUTORY INFORMATION (IFRS)
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
At 30 Jun 2025 At 31 Dec 2024
£m £m
Assets
Cash and balances at central banks 45,098 42,396
Financial assets at fair value through profit or loss 2,719 2,321
Derivative financial instruments 3,736 4,235
Financial assets at amortised cost 509,980 504,897
Financial assets at fair value through other comprehensive income 33,498 30,344
Other assets 27,526 27,020
Total assets 622,557 611,213
Liabilities
Deposits from banks 5,388 3,144
Customer deposits 461,771 451,794
Repurchase agreements at amortised cost 38,248 37,760
Due to fellow Lloyds Banking Group undertakings 3,804 4,049
Financial liabilities at fair value through profit or loss 4,363 4,630
Derivative financial instruments 5,170 5,787
Debt securities in issue at amortised cost 42,103 45,281
Other liabilities 11,859 11,810
Subordinated liabilities 7,842 7,211
Total liabilities 580,548 571,466
Total equity 42,009 39,747
Total equity and liabilities 622,557 611,213
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Half-year to 30 Jun Half-year to 30 Jun Half-year to 31 Dec 2024
2025 2024 £m
£m £m
Net interest income 6,546 6,222 6,370
Other income 2,289 2,154 2,325
Total income 8,835 8,376 8,695
Operating expenses (5,635) (5,436) (6,491)
Impairment (442) (122) (334)
Profit before tax 2,758 2,818 1,870
Tax expense (818) (811) (391)
Profit after tax 1,940 2,007 1,479
Profit attributable to ordinary shareholders 1,709 1,824 1,277
Profit attributable to other equity holders 215 172 191
Profit attributable to equity holders 1,924 1,996 1,468
Profit attributable to non-controlling interests 16 11 11
Profit after tax 1,940 2,007 1,479
FINANCIAL REVIEW
Principal activities
Lloyds Bank plc (the Bank) and its subsidiary undertakings (the Group) provide
a wide range of banking and financial services through branches and offices in
the UK and in certain overseas locations. The Group's revenue is earned
through interest and fees on a broad range of financial services products
including current accounts, savings, mortgages, credit cards, motor finance
and unsecured loans to personal and business banking customers; and lending,
transactional banking, working capital management and risk management services
to commercial customers.
Income statement
The Group's statutory profit before tax for the first half of 2025 was £2,758
million, 2% lower than in the first half of 2024. This was driven by higher
operating expenses and a higher impairment charge, partly offset by higher
total income. Profit after tax was £1,940 million (half-year to 30 June
2024: £2,007 million).
Total income for the half-year of 2025 was £8,835 million, an increase of
5% on the same period in 2024 (half-year to 30 June 2024: £8,376 million).
Net interest income of £6,546 million was up 5% on the prior year (half-year
to 30 June 2024: £6,222 million), driven by higher average interest-earning
assets and a higher margin. Other income increased by 6% to £2,289 million
(half-year to 30 June 2024: £2,154 million). The increase in other income
included the effects of fleet growth and higher average vehicle rental values
in UK Motor Finance within Retail as well as current account earnings. Other
income in the first half of 2024 was impacted by changes to commission
arrangements with Scottish Widows.
Operating expenses of £5,635 million were 4% higher than in the prior year.
This reflects higher costs, reflecting inflationary pressures, 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 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 £35 million was recognised by the Group in the first
half of 2025 (half-year to 30 June 2024: £90 million), across a small number
of rectification programmes. There have been no further charges to the
provision relating to motor finance commission arrangements.
The impairment charge was £442 million, up from £122million 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 £818 million in the first half of 2025
(half-year to 30 June 2024: £811 million).
FINANCIAL REVIEW (continued)
Balance sheet
Total assets were £11,344 million higher at £622,557 million at 30 June
2025 (31 December 2024: £611,213 million).
Financial assets at amortised cost were £5,083 million higher at
£509,980 million (31 December 2024: £504,897 million) primarily due to
increases in loans and advances to customers of £10,735 million. 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 partly offset by repayments of
government-backed lending. The growth in loans and advances to customers was
partly offset by a £4,279 million reduction in reverse repurchase
agreements, an £804 million reduction in loans and advances to banks and a
£906 million reduction in debt securities.
Financial assets held at fair value through profit or loss increased by £398
million, due to increased reverse repurchase agreements. Derivative financial
assets were £499 million lower at £3,736 million (31 December 2024:
£4,235 million), driven by interest rate movements in the period. Financial
assets at fair value through other comprehensive income of £33,498 increased
by £3,154 million in the period reflecting increases in liquid asset
holdings. Other assets were £506 million higher, primarily reflecting
increased settlement balances.
Total liabilities were £9,082 million higher at £580,548 million
(31 December 2024: £571,466 million). Customer deposits of
£461,771 million increased in the period by £9,977 million. Retail deposits
increased by £3,639 million 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. Commercial Banking deposits were up £7.6 billion
with targeted growth, alongside higher balances partly as a result of market
uncertainty.
Other liabilities increased by £49 million reflecting increased settlement
balances, while debt securities in issue decreased by £3,178 million, with
higher levels of maturities in the period.
Total equity was £42,009 million at 30 June 2025 (31 December 2024: £39,747
million). The movement reflected profit for the period, the unwind of the cash
flow hedging reserve and issuance of an AT1 capital instrument in February
2025. This was partially offset by the dividend paid in May 2025, the
redemption of an AT1 capital instrument and a lower pension surplus.
Capital
The Group's common equity tier 1 (CET1) capital ratio reduced to 13.6% at 30
June 2025 from 13.7% at 31 December 2024. Profit for the first half of the
year was more than offset by the payment of ordinary dividends, the accrual
for foreseeable ordinary dividends and an increase in risk-weighted assets.
The Group's total capital ratio increased to 20.3% at 30 June 2025 from 19.9%
at 31 December 2024, reflecting the increase in CET capital and the issuance
of new AT1 and tier 2 capital instruments during the period, partly offset by
AT1 and tier 2 instrument calls, other tier 2 movements and the increase in
risk-weighted assets.
Risk-weighted assets increased by £4,295 million to £191,291 million at 30
June 2025 from £186,996 million at 31 December 2024. This reflects the
impact of lending growth, but also includes a temporary c.£1.2 billion
increase related to hedging activity that is expected to reverse by the third
quarter. The growth in risk-weighted assets was partly offset by continued
optimisation activity.
The Group's UK leverage ratio remained at 5.4% at 30 June 2025 (31 December
2024: 5.4%), reflecting an increase in the total tier 1 capital position,
broadly offset by an increase in the leverage exposure measure. The latter
reflects increases across loans and advances and other assets, due in part to
lending growth, and an increase in off-balance sheet items. This was partially
offset by a reduction in the measure for securities financing transactions.
RISK MANAGEMENT
PRINCIPAL RISKS AND UNCERTAINTIES
The important risks faced by the Group are detailed below. External risks may
impact the success of delivering against the Group's long-term strategic
objectives. They include, but are not limited to, macroeconomic and
geopolitical uncertainties and inflation trends which could contribute to the
cost of living and associated implications for consumers and businesses.
Asset quality remains robust with stable credit performance throughout the
period. The Group continues to monitor the impacts of the economic environment
closely through a suite of early warning indicators and governance
arrangements that ensure risk mitigating action plans are in place to support
customers and protect the Group's positions.
With respect to conduct risk, there have been no further charges relating to
the potential impact of the FCA review into motor finance commission
arrangements. The Supreme Court heard the appeal of the Wrench, Johnson and
Hopcraft decision in early April. The FCA has indicated that the Supreme Court
decision will inform its next steps for both the discretionary commission
arrangements (DCA) review and non-DCA complaints and that it will provide an
update within six weeks of the Supreme Court decision. In establishing the
provision of £1.15 billion, the Group has considered a number of scenarios to
address uncertainties around a number of key assumptions. These include a
range of potential Supreme Court outcomes, regulatory responses including
steps that the FCA may take, and outcomes in relation to redress.
The Group continues to invest in technology to strengthen its capabilities,
ensuring the appropriate use of models and artificial intelligence.
Operational resilience remains a high priority area for the Group to ensure
that it can continue to effectively prevent, withstand and respond to
potential cybersecurity threats and incidents such as IT system outages, using
threat intelligence and learnings from recent industry events where relevant.
The Group is transforming its approach to risk management to support its
strategic ambition and purpose of Helping Britain Prosper. Following changes
to the three lines of defence model in 2024 to ensure more clearly defined
responsibilities and accountabilities across the business, further
enhancements to the way the Group delivers risk management have been made by
standardising practices and streamlining processes. The Group Risk Management
Framework was enhanced during the first half of 2025, along with the approach
to risk appetite and risk governance, enabling simplification and efficiency.
The Group has 10 principal risks, which are unchanged in 2025 and are
underpinned by a suite of level two risks. These risks are reviewed and
reported regularly to the Board in alignment with the enhanced Group Risk
Management Framework, and consist of capital risk, climate risk, compliance
risk, conduct risk, credit risk, economic crime risk, liquidity risk, market
risk, model risk and operational risk. Further information regarding the
Group's principal risks is available on pages 21 to 62 in the Group's 2024
annual report and accounts.
CAPITAL RISK
Capital resources
An analysis of the Group's capital position as at 30 June 2025 is presented in
the following table. 31 December 2024 reflects the application of the
transitional arrangements for IFRS 9.
At 30 Jun At 31 Dec
2025 2024
£m £m
Common equity tier 1
Shareholders' equity per balance sheet 36,175 33,975
Adjustment to retained earnings for foreseeable dividends (1,050) -
Cash flow hedging reserve 2,682 3,568
Other adjustments (61) (15)
37,746 37,528
less: deductions from common equity tier 1
Goodwill and other intangible assets (5,396) (5,494)
Prudent valuation adjustment (90) (92)
Excess of expected losses over impairment provisions and value adjustments (122) (75)
Removal of defined benefit pension surplus (2,158) (2,215)
Deferred tax assets (3,886) (4,042)
Common equity tier 1 capital 26,094 25,610
Additional tier 1
Additional tier 1 instruments 5,758 5,695
Total tier 1 capital 31,852 31,305
Tier 2
Tier 2 instruments 7,074 5,826
Eligible provisions - 83
Total tier 2 capital 7,074 5,909
Total capital resources 38,926 37,214
Risk-weighted assets 191,291 186,996
Common equity tier 1 capital ratio 13.6% 13.7%
Tier 1 capital ratio 16.7% 16.7%
Total capital ratio 20.3% 19.9%
CAPITAL RISK (continued)
Movements in CET1 capital
The key movements are set out in the table below.
Common
equity tier 1
£m
At 31 December 2024 25,610
Profit for the year 1,940
Accrual for foreseeable ordinary dividends (1,050)
Dividends paid out on ordinary shares during the period (640)
Fair value through other comprehensive income reserve 143
Deferred tax asset 156
Net movement in capital contributions 102
Distributions on other equity instruments (215)
Other movements 48
At 30 June 2025 26,094
CET1 capital resources increased by £484 million, with profits for the first
half of the year offset by the payment of ordinary dividends and the accrual
for foreseeable ordinary dividends.
Movements in total capital
The Group's total capital ratio increased to 20.3% at 30 June 2025 from 19.9%
at 31 December 2024, reflecting the increase in CET capital and the issuance
of new AT1 and tier 2 capital instruments during the period, partly offset by
AT1 and tier 2 instrument calls, other tier 2 movements and the increase in
risk-weighted assets.
(
)
CAPITAL RISK (continued)
Risk-weighted assets
At 30 Jun At 31 Dec
2025 2024
£m £m
Foundation Internal Ratings Based (IRB) Approach 36,236 35,359
Retail IRB Approach 91,979 90,548
Other IRB Approach 6,416 6,327
IRB Approach 134,631 132,234
Standardised (STA) Approach(1) 20,075 19,380
Credit risk 154,706 151,614
Securitisation 7,728 7,648
Counterparty credit risk 1,082 1,119
Credit valuation adjustment risk 325 244
Operational risk 26,079 26,079
Market risk 1,371 292
Risk-weighted assets 191,291 186,996
of which: threshold risk-weighted assets(2) 902 1,211
(1 ) Threshold risk-weighted assets are included within the Standardised
(STA) Approach.
(2 ) Threshold risk-weighted assets reflect the element of deferred tax
assets that are permitted to be risk-weighted instead of being deducted from
CET1 capital.
Risk-weighted assets increased by £4,295 million to £191,291 million at 30
June 2025 from £186,996 million at 31 December 2024. This reflects the
impact of lending growth, but also includes a temporary c.£1.2 billion
increase related to hedging activity that is expected to reverse by the third
quarter. The growth in risk-weighted assets was partly offset by continued
optimisation activity.
CAPITAL RISK (continued)
Leverage ratio
The table below summarises the component parts of the Group's leverage ratio.
At 30 Jun At 31 Dec
2025 2024
£m £m
Total tier 1 capital 31,852 31,305
Exposure measure
Statutory balance sheet assets
Derivative financial instruments 3,736 4,235
Securities financing transactions 40,368 44,143
Loans and advances and other assets 578,453 562,835
Total assets 622,557 611,213
Qualifying central bank claims (44,967) (42,098)
Derivatives adjustments (2,931) (3,648)
Securities financing transactions adjustments 1,617 1,892
Off-balance sheet items 32,265 30,849
Amounts already deducted from Tier 1 capital (11,601) (11,864)
Other regulatory adjustments(1) (3,032) (4,012)
Total exposure measure 593,908 582,332
UK leverage ratio 5.4% 5.4%
Leverage exposure measure (including central bank claims) 638,875 624,430
Leverage ratio (including central bank claims) 5.0% 5.0%
(1) Includes deconsolidation adjustments that relate to the deconsolidation
of certain Group entities that fall outside the scope of the Group's
regulatory capital consolidation and adjustments to exclude lending under the
UK Government's Bounce Back Loan Scheme (BBLS)
Analysis of leverage movements
The Group's UK leverage ratio remained at 5.4% at 30 June 2025 (31 December
2024: 5.4%), reflecting an increase in the total tier 1 capital position,
broadly offset by an increase in the leverage exposure measure. The latter
reflects increases across loans and advances and other assets, due in part to
lending growth, and an increase in off-balance sheet items. This was partially
offset by a reduction in the measure for securities financing transactions.
Pillar 3 disclosures
The Group will publish a condensed set of half-year Pillar 3 disclosures in
the second half of August. A copy of the disclosures will be available to view
at: www.lloydsbankinggroup.com/investors/financial-downloads.html.
CREDIT RISK
Overview
The Group's portfolios continue to demonstrate resilience amid ongoing
macroeconomic uncertainty. The Group maintains a prudent approach to credit
risk appetite and risk management, with strong credit origination criteria
including evidence of affordability and robust LTVs in the secured portfolios.
Asset quality remains robust with stable credit performance during the first
half of the year. In UK mortgages, reductions in new to arrears and flows to
default have been observed over the period, whilst unsecured portfolios
continue to exhibit stable arrears trends. Credit quality also remains stable
in Commercial Banking. The Group continues to monitor the impacts of the
economic environment carefully through a suite of early warning indicators and
governance arrangements that ensure risk mitigating action plans are in place
to support customers and protect the Group's positions.
The impairment charge in the first half of 2025 was £442 million, up from
£122 million in the first half of 2024 which benefitted from a large release
from improvements to the Group's economic outlook. The charge for the first
half of 2025 includes a small net release from updates in the Group's
macroeconomic outlook. The Group's probability-weighted total expected credit
loss (ECL) allowance was broadly stable in the first half of 2025 at £3,374
million (31 December 2024: £3,453 million).
Stage 2 loans and advances to customers are slightly lower at £43,382 million
(31 December 2024: £44,658 million) and are at 9.5% of total lending (31
December 2024: 10.0%) largely due to migrations into Stage 3 within Commercial
Banking. Stage 2 coverage remained stable at 2.8% (31 December 2024: 2.9%).
Stage 3 loans and advances to customers remain stable at £6,815 million (31
December 2024: £6,708 million), and as a percentage of total lending at 1.5%
(31 December 2024: 1.5%). Migrations into Stage 3 from a small number of
cases within Commercial Banking are offset by continued resilient Retail
performance, especially within UK Mortgages where default rates continue to
improve. This also resulted in stable Stage 3 coverage at Group level at
16.4% (31 December 2024: 16.5%).
Prudent risk appetite and risk management
• The Group continues to take a prudent and proactive approach to credit
risk management and credit risk appetite with robust oversight, particularly
in response to recent external events. Risk appetite is in line with the
Group's strategy and helps support customers during continued economic
uncertainties in both global and domestic markets
• Sector, asset and product concentrations within the portfolios are
closely monitored and controlled, with mitigating actions taken where
appropriate. Sector and product risk parameters help manage exposure to higher
risk and cyclical sectors, segments and asset classes
• The Group's effective risk management seeks to ensure early
identification and management of customers and counterparties who may be
showing signs of distress
• The Group will continue to work closely with its customers to ensure
that they receive the appropriate level of support where required
•
CREDIT RISK (continued)
Impairment charge (credit) by division
Half-year Half-year Change Half-year Change
to 30 Jun 2025 to 30 Jun % to 31 Dec %
£m 2024 2024
£m £m
UK mortgages (133) (119) 12 (75) 77
Credit cards 200 115 (74) 155 (29)
UK unsecured loans and overdrafts 163 140 (16) 132 (23)
UK Motor Finance 111 61 (82) 55
Other 1 (3) (4)
Retail 342 194 (76) 263 (30)
Business and Commercial Banking (35) 11 36
Corporate and Institutional Banking 134 (80) 35
Commercial Banking 99 (69) 71 (39)
Other 1 (3) -
Total impairment charge (credit) 442 122 334 (32)
Total expected credit loss allowance
At 30 Jun 2025 At 31 Dec 2024
£m £m
Customer related balances
Drawn 3,151 3,183
Undrawn 218 265
3,369 3,448
Other assets 5 5
Total expected credit loss allowance 3,374 3,453
CREDIT RISK (continued)
Total expected credit loss allowance sensitivity to economic assumptions
The measurement of ECL reflects an unbiased probability-weighted range of
possible future economic outcomes. The Group achieves this by generating four
economic scenarios to reflect the range of outcomes; the central scenario
reflects the Group's base case assumptions used for medium-term planning
purposes, an upside and a downside scenario are also selected together with a
severe downside scenario. If the base case moves adversely, it generates a
new, more adverse downside and severe downside which are then incorporated
into the ECL. Consistent with prior years, the base case, upside and downside
scenarios carry a 30% weighting; the severe downside is weighted at 10%.
The following table shows the Group's ECL for the probability-weighted,
upside, base case, downside and severe downside scenarios, with the severe
downside scenario incorporating adjustments made to CPI inflation and UK Bank
Rate paths. The stage allocation for an asset is based on the overall scenario
probability-weighted probability of default and hence the staging of assets is
constant across all the scenarios. In each economic scenario the ECL for
individual assessments is held constant reflecting the basis on which they are
evaluated. Judgemental adjustments applied through changes to model inputs or
parameters, or more qualitative post model adjustments, are apportioned across
the scenarios in proportion to modelled ECL where this better reflects the
sensitivity of these adjustments to each scenario. The probability-weighted
view shows the extent to which a higher ECL allowance has been recognised to
take account of multiple economic scenarios relative to the base case; the
uplift on a statutory basis being £403 million compared to £443 million at
31 December 2024.
Total ECL allowance by scenario
Probability- Upside Base case Downside Severe
weighted £m £m £m downside
£m £m
UK mortgages 709 315 478 890 2,044
Credit cards 659 550 630 729 865
Other Retail 1,010 926 981 1,057 1,205
Commercial Banking 995 765 881 1,123 1,646
Other 1 1 1 1 1
At 30 June 2025 3,374 2,557 2,971 3,800 5,761
UK mortgages 852 345 567 1,064 2,596
Credit cards 674 518 641 773 945
Other Retail 950 843 923 1,010 1,172
Commercial Banking 976 737 878 1,110 1,586
Other 1 1 1 1 1
At 31 December 2024 3,453 2,444 3,010 3,958 6,300
CREDIT RISK (continued)
Loans and advances to customers and expected credit loss allowance
At 30 June 2025 Stage 1 Stage 2 Stage 3 POCI Total Stage 2 Stage 3
£m £m £m £m £m as % of as % of
total total
Loans and advances to customers
UK mortgages 276,759 32,016 4,054 5,767 318,596 10.0 1.3
Credit cards 14,348 2,375 263 - 16,986 14.0 1.5
UK unsecured loans and overdrafts 10,024 1,348 180 - 11,552 11.7 1.6
UK Motor Finance 14,348 2,488 133 - 16,969 14.7 0.8
Other 19,762 404 158 - 20,324 2.0 0.8
Retail 335,241 38,631 4,788 5,767 384,427 10.0 1.2
Business and Commercial Banking 25,660 2,717 1,076 - 29,453 9.2 3.7
Corporate and Institutional Banking 38,600 2,034 951 - 41,585 4.9 2.3
Commercial Banking 64,260 4,751 2,027 - 71,038 6.7 2.9
Other(1) 327 - - - 327
Total gross lending 399,828 43,382 6,815 5,767 455,792 9.5 1.5
Customer related ECL allowance (drawn and undrawn)
UK mortgages 48 217 283 161 709
Credit cards 209 314 136 - 659
UK unsecured loans and overdrafts 171 245 120 - 536
UK Motor Finance(2) 200 132 75 - 407
Other 14 15 38 - 67
Retail 642 923 652 161 2,378
Business and Commercial Banking 117 170 133 - 420
Corporate and Institutional Banking 102 135 334 - 571
Commercial Banking 219 305 467 - 991
Other - - - - -
Total 861 1,228 1,119 161 3,369
Customer related ECL allowance (drawn and undrawn) as a percentage of loans
and advances to customers
Stage 1 Stage 2 Stage 3 POCI Total
%
%
%
%
%
UK mortgages - 0.7 7.0 2.8 0.2
Credit cards 1.5 13.2 51.7 - 3.9
UK unsecured loans and overdrafts 1.7 18.2 66.7 - 4.6
UK Motor Finance 1.4 5.3 56.4 - 2.4
Other 0.1 3.7 24.1 - 0.3
Retail 0.2 2.4 13.6 2.8 0.6
Business and Commercial Banking 0.5 6.3 12.4 - 1.4
Corporate and Institutional Banking 0.3 6.6 35.1 - 1.4
Commercial Banking 0.3 6.4 23.0 - 1.4
Other - - - - -
Total 0.2 2.8 16.4 2.8 0.7
(1) Contains central fair value hedge accounting adjustments.
(2) UK Motor Finance includes £211 million relating to provisions against
residual values of vehicles subject to finance leases.
CREDIT RISK (continued)
Loans and advances to customers and expected credit loss allowance (continued)
At 31 December 2024 Stage 1 Stage 2 Stage 3 POCI Total Stage 2 Stage 3
£m £m £m £m £m as % of as % of
total total
Loans and advances to customers
UK mortgages 269,760 32,995 4,166 6,207 313,128 10.5 1.3
Credit cards 13,534 2,441 265 - 16,240 15.0 1.6
UK unsecured loans and overdrafts 9,314 1,247 175 - 10,736 11.6 1.6
UK Motor Finance 13,897 2,398 124 - 16,419 14.6 0.8
Other 17,373 516 147 - 18,036 2.9 0.8
Retail 323,878 39,597 4,877 6,207 374,559 10.6 1.3
Business and Commercial Banking 25,785 3,172 1,197 - 30,154 10.5 4.0
Corporate and Institutional Banking 38,176 1,889 634 - 40,699 4.6 1.6
Commercial Banking 63,961 5,061 1,831 - 70,853 7.1 2.6
Other(1) (322) - - - (322)
Total gross lending 387,517 44,658 6,708 6,207 445,090 10.0 1.5
Customer related ECL allowance (drawn and undrawn)
UK mortgages 55 275 335 187 852
Credit cards 210 331 133 - 674
UK unsecured loans and overdrafts 170 235 118 - 523
UK Motor Finance(2) 173 115 72 - 360
Other 16 14 37 - 67
Retail 624 970 695 187 2,476
Business and Commercial Banking 132 187 166 - 485
Corporate and Institutional Banking 112 127 248 - 487
Commercial Banking 244 314 414 - 972
Other - - - - -
Total 868 1,284 1,109 187 3,448
Customer related ECL allowance (drawn and undrawn) as a percentage of loans
and advances to customers
Stage 1 Stage 2 Stage 3 POCI Total
%
%
%
%
%
UK mortgages - 0.8 8.0 3.0 0.3
Credit cards 1.6 13.6 50.2 - 4.2
UK unsecured loans and overdrafts 1.8 18.8 67.4 - 4.9
UK Motor Finance 1.2 4.8 58.1 - 2.2
Other 0.1 2.7 25.2 - 0.4
Retail 0.2 2.4 14.3 3.0 0.7
Business and Commercial Banking 0.5 5.9 13.9 - 1.6
Corporate and Institutional Banking 0.3 6.7 39.1 - 1.2
Commercial Banking 0.4 6.2 22.6 - 1.4
Other - - - - -
Total 0.2 2.9 16.5 3.0 0.8
(1) Contains central fair value hedge accounting adjustments.
(2) UK Motor Finance includes £178 million relating to provisions against
residual values of vehicles subject to finance leases.
(
)
CREDIT RISK (continued)
Retail
• The Retail portfolio continues to demonstrate resilience and remains
well positioned despite ongoing economic uncertainty. Consumers have shown
strength in the context of inflationary pressures
• Robust risk management remains in place, with strong affordability and
indebtedness controls for both new and existing lending and a prudent risk
appetite approach. Lending strategies remain under continuous review and have
been proactively managed and calibrated to the latest macroeconomic outlook
• In UK mortgages, new to arrears and flow to default rates have improved
during the first half of the year, including in the second quarter
• The unsecured portfolios continue to exhibit broadly stable new to
arrears and flow to default trends
• New to arrears and flows to default in UK Motor finance have stabilised
in the first half of the year versus the modest increases observed in the
second half of 2024
• The Retail impairment charge of £342 million in the first half of 2025
was higher than the £194 million charge for the first half of 2024, which
included a larger release from improvements to the Group's macroeconomic
outlook
• All existing IFRS 9 staging rules and triggers have been maintained from
the 2024 year end. Retail customer related ECL allowance as a percentage of
drawn loans and advances (coverage) is stable at 0.6% (31 December 2024:
0.7%)
• Updates to the Group's macroeconomic outlook in the first half of 2025,
combined with stable credit performance and strong application volumes within
UK Mortgages have reduced Stage 2 loans and advances to 10.0% of the Retail
portfolio (31 December 2024: 10.6%). Stage 2 ECL coverage remains stable at
2.4% (31 December 2024: 2.4%)
• Continued stable credit performance in addition to strong application
volumes resulted in a reduction in Retail Stage 3 loans and advances to 1.2%
of total loans and advances (31 December 2024: 1.3%)
• Retail Stage 3 ECL coverage reduced to 13.6% (31 December 2024: 14.3%)
largely as a result of a reduction in coverage for UK Mortgages following
improvements to the outlook for house price growth
UK mortgages
• The UK mortgages portfolio increased to £318.6 billion (31 December
2024: £313.1 billion) driven by strong customer demand
• New to arrears in the UK mortgages portfolio have improved in the first
half of 2025. The portfolio remains well positioned with a strong loan to
value (LTV) profile. The Group has actively improved the quality of the
portfolio in recent years using robust affordability and credit controls,
while the balances of higher risk legacy vintages continue to reduce
• The impairment release of £133 million for the first half of 2025 is
broadly in line with the release of £119 million in the first half of 2024.
Underlying performance remains stable with both years also benefitting from
favourable updates to the economic outlook, with additional judgement
reductions resulting in slight favourability in 2025
• Stage 2 loans and advances have reduced to 10.0% (31 December 2024:
10.5%) following updates to the Group's macroeconomic outlook, and a
combination of stable credit performance with strong application volumes
• Continued stable credit performance in addition to strong application
volumes also result in stable Stage 3 loans and advances at 1.3% (31 December
2024: 1.3%), with improvements to the outlook for house price growth resulting
in a reduction in Stage 3 ECL coverage to 7.0% (31 December 2024: 8.0%)
CREDIT RISK (continued)
UK mortgages product analysis
At 30 June 2025 At 31 December 2024
Mainstream Buy-to-let Specialist Total Mainstream Buy-to-let Specialist Total
UK mortgages loans and advances to customers (£m) 267,588 47,830 3,178 318,596 261,630 47,984 3,514 313,128
UK mortgages greater than 3 months in arrears(1)
Number of cases 18,495 4,075 2,541 25,111 20,112 4,511 2,818 27,441
Total mortgages accounts (%) 1.1 1.1 9.0 1.2 1.2 1.2 9.2 1.3
Value of loans(2) (£m) 2,701 575 460 3,736 2,910 651 531 4,092
Total mortgages balances (%) 1.0 1.2 14.3 1.2 1.1 1.4 14.7 1.3
Loan to value
Less than 60% (%) 54.8 68.0 90.6 57.1 55.6 68.5 89.4 57.9
60% to 70% (%) 16.2 21.1 6.1 16.8 16.7 21.1 6.9 17.2
70% to 80% (%) 14.7 10.8 1.7 14.0 14.1 10.3 2.0 13.4
80% to 90% (%) 12.8 0.1 0.9 10.8 11.9 0.1 0.9 10.0
90% to 100% (%) 1.5 0.0 0.4 1.3 1.7 0.0 0.5 1.5
Greater than 100% (%) 0.0 0.0 0.3 0.0 0.0 0.0 0.3 0.0
Total (%) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Average loan to value(3)
Stock of residential mortgages (%) 43.4 47.2 32.2 43.8 43.2 47.3 32.9 43.6
New residential lending in the period (%) 65.0 57.7 n/a 64.3 64.1 56.4 n/a 63.2
(1) Excluding repossessions.
(2) Value of loans represents gross book value excluding the impact of HBOS
acquisition adjustments of mortgages more than three months in arrears. These
accounts are a subset of total Stage 3 given the exclusion of accounts in
possession and those meeting other Stage 3 criteria.
(3) Average loan to value is calculated as total loans and advances as a
percentage of the total indexed collateral of these loans and advances.
CREDIT RISK (continued)
Credit cards
• Credit cards balances increased to £17.0 billion (31 December 2024:
£16.2 billion), due to higher demand for new cards and increased customer
spending
• The credit card portfolio is a prime book, with new to arrears
continuing to decline and repayment rates remaining strong
• The impairment charge of £200 million for the first half of 2025, is
higher than the charge of £115 million in the first half of 2024 due to
upwards revisions to the unemployment forecast, compared to favourable updates
in 2024, with underlying portfolio performance remaining resilient. Total ECL
coverage is broadly stable at 3.9% (31 December 2024: 4.2%)
• Resilient credit performance and higher portfolio balances result in a
slight reduction in Stage 2 loans and advances to 14.0% (31 December 2024:
15.0%), with Stage 2 ECL coverage stable at 13.2% (31 December 2024: 13.6%)
• Similarly Stage 3 loans and advances reduced slightly to 1.5% (31
December 2024: 1.6%) with Stage 3 ECL coverage increasing slightly to 51.7%
(31 December 2024: 50.2%)
UK unsecured loans and overdrafts
• UK unsecured loans and overdraft balances increased to £11.6 billion
(31 December 2024: £10.7 billion) driven by organic balance growth and lower
repayments
• The impairment charge of £163 million for the first half of 2025 is
higher than the charge of £140 million in the first half of 2024 largely due
to upwards revisions to the unemployment forecast. ECL and coverage is broadly
stable at total level and across all stages
UK Motor Finance
• The UK Motor Finance lending portfolio (which does not include operating
leases) increased to £17.0 billion (31 December 2024: £16.4 billion) driven
by retail demand, alongside increased stocking
• Updates to Residual Value (RV) and Voluntary Termination (VT) provisions
held against Personal Contract Purchase (PCP) and Hire Purchase (HP) lending
are included within ECL and the impairment charge. Falls in used vehicle
values have primarily driven an ECL increase to £211 million as at 30 June
2025 (31 December 2024: £178 million)
• The impairment charge of £111 million for the first half of 2025 is
higher than the charge of £61 million for the first half of 2024, reflecting
increased RV and VT charges year-on-year
Other
• Other loans and advances increased to £20.3 billion (31 December 2024:
£18.0 billion), largely driven by the European business
• Stage 3 loans and advances remained stable at 0.8% of total loans and
advances (31 December 2024: 0.8%)
• There was a £1 million impairment charge in the first half of 2025,
compared to a £3 million release in the first half of 2024
•
CREDIT RISK (continued)
Commercial Banking
• The Commercial portfolio credit quality remains stable, benefitting from
a focused approach to credit underwriting and monitoring standards supported
by proactive management of exposures to higher risk and cyclical sectors
• Credit strategies and policy remains robust and within our credit risk
tolerances. The Group remains cognisant of the continued relatively elevated
interest rate environment especially in, but not limited to, sectors reliant
upon consumer discretionary spend
• The Group continues to review segments of our portfolios as appropriate,
ensuring our credit strategies, appetite, sensitivities and mitigation action
plans are up-to-date and suitable for rapid action in response to both risks
and opportunities, whilst supporting clients in the right way and ensuring the
Group is protected. Credit Playbooks are in place to cover a number of
potential credit downside scenarios and these are regularly reassessed and
updated. Affordability and interest rate sensitivity are tested at
origination. Early warning indicators and risk appetite metrics are in place
to ensure the Group tracks and takes action, where appropriate
• The Group continues to provide early support to customers in difficulty
through focused risk management via its Watchlist and Business Support
framework. The Group also balances prudent risk appetite with ensuring support
for financially viable clients
Impairment
• The net impairment charge in the first half of 2025 was £99 million,
versus an impairment release of £69 million in the first half of 2024 which
included a release from improvements to the Group's macroeconomic outlook
• ECL allowances increased in the year to £991 million at 30 June 2025
(31 December 2024: £972 million), also as a result of the updates to single
name cases and additional judgement
• Stage 2 loans and advances reduced to £4,751 million (31 December
2024: £5,061 million), largely as a result of migrations into Stage 3. Stage
2 as a proportion of total loans and advances to customers reduced to 6.7%
(31 December 2024: 7.1%) with underlying credit performance and Stage 2 ECL
coverage stable at 6.4% (31 December 2024: 6.2%)
• Stage 3 loans and advances increased to £2,027 million (31 December
2024: £1,831 million) and as a proportion of total loans and advances to
customers to 2.9% (31 December 2024: 2.6%). Stage 3 ECL coverage remained
broadly stable at 23.0% (31 December 2024: 22.6%)
•
Commercial Banking UK Real Estate analysis
• Commercial Banking UK Real Estate committed drawn lending stood at £9.0
billion at May 2025 (net of £2.7 billion exposures subject to protection
through Significant Risk Transfer (SRT) securitisations). This compares to
£9.1 billion at 31 December 2024 (net of £3.1 billion subject to SRT
securitisations). In addition there are undrawn lending facilities of £3.0
billion (31 December 2024: £2.1 billion) to predominantly investment grade
rated corporate customers
• The Group classifies Real Estate as exposure which is directly supported
by cash flows from property activities (as opposed to trading activities, such
as hotels, care homes and housebuilders). Drawn lending of £6.6 billion to
social housing providers are also excluded (31 December 2024: £6.9 billion)
• Despite some headwinds, including the impact of elevated interest rates,
the portfolio continues to remain well-positioned and proactively managed with
conservative LTVs, good levels of interest cover and appropriate risk
mitigants in place
• Overall performance of the portfolio has remained resilient. The Group
has continued to see strong asset quality within this sector, with a decrease
in cases in its more closely monitored Watchlist category and limited flow
into Business Support
• Lending continues to be heavily weighted towards investment real estate
(c.91%) rather than development. Of these investment exposures c.94% have an
LTV of less than 70%, with an average LTV of 45%. The average interest cover
ratio was 3.1 times, with 75% having interest cover of above 2 times
• The portfolio is well diversified with no fully speculative commercial
development lending (defined as property not pre-sold or pre-let at a level to
fully repay the debt or generate sufficient income to meet the minimum
interest cover requirements). Approximately 46% of exposures relate to
commercial real estate, including c.12% secured by office assets, c.9% by
retail assets and c.13% by industrial assets. Approximately 52% of the
portfolio relates to residential lending
• Recognising this is a cyclical sector, total (gross and net) and asset
type quantum caps are in place to control origination and exposure. Focus
remains on the UK market and new business has been written in line with a
prudent risk appetite criteria including conservative LTVs, strong quality of
income and proven management teams. Development lending criteria also includes
maximum loan to gross development value and maximum loan to cost
• Use of SRT securitisations also acts as a risk mitigant in this
portfolio. Run-off of these is carefully managed and sequenced to avoid
concentrations
•
LIQUIDITY RISK
Overview
The Group has maintained its strong funding and liquidity position with a loan
to deposit ratio of 98% as at 30 June 2025 (31 December 2024: 98%). Total
wholesale funding decreased to £61.7 billion as at 30 June 2025
(31 December 2024: £62.6 billion). The Group maintains access to diverse
sources and tenors of funding.
The Group's liquid assets continue to exceed the regulatory minimum and
internal risk appetite, with a liquidity coverage ratio (LCR)(1) of 136%
(based on a monthly rolling average over the previous 12 months) as at 30 June
2025 (31 December 2024: 137%). The net stable funding ratio is strong at 122%
as at 30 June 2025 (31 December 2024: 124%).
At 30 June 2025, the Group had £105.5 billion of highly liquid unencumbered
LCR eligible assets, based on a monthly rolling average over the previous 12
months post any liquidity haircuts (31 December 2024: £107.5 billion). These
assets are available to meet cash and collateral outflows and regulatory
requirements.
The banking business also has a significant amount of non-LCR eligible liquid
assets which are eligible for use in a range of central bank or similar
facilities. Future use of such facilities will be based on prudent liquidity
management and economic considerations, having regard for external market
conditions.
The Group's credit ratings are well positioned and continue to reflect the
strength of the Group's management and franchise, along with its robust
financial performance, capital and funding position.
(1) Based on a monthly simple average over the previous 12 months.
Reconciliation of Group funding to the balance sheet
At 30 June 2025 Included Cash collateral received Fair value Balance
in funding £bn and other sheet
analysis accounting methods £bn
£bn £bn
Deposits from banks 4.7 0.2 0.5 5.4
Debt securities in issue at amortised cost 47.9 - (5.8) 42.1
Subordinated liabilities 9.1 - (1.3) 7.8
Total wholesale funding 61.7 0.2
Customer deposits 461.8 - - 461.8
Total 523.5 0.2
At 31 December 2024
Deposits from banks 2.3 0.6 0.2 3.1
Debt securities in issue at amortised cost 51.6 - (6.3) 45.3
Subordinated liabilities 8.7 - (1.5) 7.2
Total wholesale funding 62.6 0.6
Customer deposits 451.8 - - 451.8
Total 514.4 0.6
Analysis of term issuance in half-year to 30 June 2025
Sterling US dollar Euro Other Total
£bn £bn £bn currencies(1) £bn
£bn
Securitisation(2) 0.1 - 0.6 - 0.7
Covered bonds - - - - -
Senior unsecured notes - - - 0.4 0.4
Subordinated liabilities - 0.9 0.9 - 1.8
Additional tier 1 0.8 - - - 0.8
Total issuance 0.9 0.9 1.5 0.4 3.7
(1) Primarily Australian dollar.
(2) Includes significant risk transfer securitisations.
(
)
STATUTORY INFORMATION
Condensed consolidated half-year financial statements (unaudited)
Condensed consolidated income statement (unaudited) (#Section36) 22
Condensed consolidated statement of comprehensive income (unaudited) 23
(#Section37)
Condensed consolidated balance sheet (unaudited) (#Section38) 24
Condensed consolidated statement of changes in equity (unaudited) (#Section39) 25
Condensed consolidated cash flow statement (unaudited) (#Section40) 28
Notes to the condensed consolidated half-year financial statements (unaudited)
1 Basis of preparation and accounting policies (#88) 30 (#Section42)
2 Critical accounting judgements and key sources of estimation uncertainty 30
(#Section43)
3 Segmental analysis (#Section44) 30
4 Net fee and commission income (#Section45) 31
5 Operating expenses (#Section46) 31
6 Retirement benefit obligations (#Section47) 32
7 Impairment (#Section48) 33
8 Tax (#Section49) 33
9 Fair values of financial assets and liabilities (#Section50) 34
10 Allowance for expected credit losses (#Section51) 39
11 Debt securities in issue (#Section52) 46
12 Provisions (#Section53) 46
13 Dividends on ordinary shares (#Section54) 48
14 Related party transactions (#Section55) 49
15 Contingent liabilities, commitments and guarantees (#Section56) 49
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Note Half-year Half-year
to 30 Jun to 30 Jun
2025 2024
£m £m
Interest income 14,094 13,980
Interest expense (7,548) (7,758)
Net interest income 6,546 6,222
Fee and commission income 1,202 1,186
Fee and commission expense (597) (883)
Net fee and commission income 4 605 303
Net trading income 150 331
Other operating income 1,534 1,520
Other income 2,289 2,154
Total income 8,835 8,376
Operating expenses 5 (5,635) (5,436)
Impairment 7 (442) (122)
Profit before tax 2,758 2,818
Tax expense 8 (818) (811)
Profit for the period 1,940 2,007
Profit attributable to ordinary shareholders 1,709 1,824
Profit attributable to other equity holders 215 172
Profit attributable to equity holders 1,924 1,996
Profit attributable to non-controlling interests 16 11
Profit for the period 1,940 2,007
The accompanying notes are an integral part of the condensed consolidated
half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
Half-year Half-year
to 30 Jun to 30 Jun
2025 2024
£m £m
Profit for the period 1,940 2,007
Other comprehensive income
Items that will not subsequently be reclassified to profit or loss:
Post-retirement defined benefit scheme remeasurements:
Remeasurements before tax (168) (351)
Current tax 25 29
Deferred tax 18 64
(125) (258)
Gains and losses attributable to own credit risk:
Gains (losses) before tax 62 (86)
Deferred tax (17) 24
45 (62)
Items that may subsequently be reclassified to profit or loss:
Movements in revaluation reserve in respect of debt securities held at fair
value through other comprehensive income:
Change in fair value 81 105
Income statement transfers in respect of disposals 111 (4)
Income statement transfers in respect of impairment - (2)
Deferred tax (49) (27)
143 72
Movements in cash flow hedging reserve:
Effective portion of changes in fair value taken to other comprehensive income 396 (1,435)
Net income statement transfers 835 1,072
Deferred tax (345) 102
886 (261)
Movements in foreign currency translation reserve:
Currency translation differences (tax: £nil) 42 (39)
42 (39)
Total other comprehensive income (loss) for the period, net of tax 991 (548)
Total comprehensive income for the period 2,931 1,459
Total comprehensive income attributable to ordinary shareholders 2,700 1,276
Total comprehensive income attributable to other equity holders 215 172
Total comprehensive income attributable to equity holders 2,915 1,448
Total comprehensive income attributable to non-controlling interests 16 11
Total comprehensive income for the period 2,931 1,459
The accompanying notes are an integral part of the condensed consolidated
half-year financial statements.
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
Note At 30 Jun At 31 Dec
2025 2024
£m £m
Assets
Cash and balances at central banks 45,098 42,396
Financial assets at fair value through profit or loss 9 2,719 2,321
Derivative financial instruments 3,736 4,235
Loans and advances to banks 5,629 6,433
Loans and advances to customers 452,642 441,907
Reverse repurchase agreements 39,864 44,143
Debt securities 10,948 11,854
Due from fellow Lloyds Banking Group undertakings 897 560
Financial assets at amortised cost 509,980 504,897
Financial assets at fair value through other comprehensive income 9 33,498 30,344
Goodwill and other intangible assets 5,679 5,804
Current tax recoverable 1,042 338
Deferred tax assets 4,188 4,785
Retirement benefit assets 6 2,953 3,028
Other assets 13,664 13,065
Total assets 622,557 611,213
Liabilities
Deposits from banks 5,388 3,144
Customer deposits 461,771 451,794
Repurchase agreements at amortised cost 38,248 37,760
Due to fellow Lloyds Banking Group undertakings 3,804 4,049
Financial liabilities at fair value through profit or loss 9 4,363 4,630
Derivative financial instruments 5,170 5,787
Notes in circulation 2,119 2,121
Debt securities in issue at amortised cost 11 42,103 45,281
Other liabilities 7,383 7,211
Retirement benefit obligations 6 119 122
Current tax liabilities 44 33
Deferred tax liabilities 120 125
Provisions 12 2,074 2,198
Subordinated liabilities 7,842 7,211
Total liabilities 580,548 571,466
Equity
Share capital 1,574 1,574
Share premium account 600 600
Other reserves 3,460 2,389
Retained profits 30,541 29,412
Ordinary shareholders' equity 36,175 33,975
Other equity instruments 5,758 5,692
Total equity excluding non-controlling interests 41,933 39,667
Non-controlling interests 76 80
Total equity 42,009 39,747
Total equity and liabilities 622,557 611,213
The accompanying notes are an integral part of the condensed consolidated
half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Attributable to ordinary shareholders
Share Other Retained Total Other Non- Total
capital and reserves profits £m equity controlling £m
premium £m £m instruments interests
£m £m £m
At 1 January 2025 2,174 2,389 29,412 33,975 5,692 80 39,747
Comprehensive income
Profit for the period - - 1,709 1,709 215 16 1,940
Other comprehensive income
Post-retirement defined benefit scheme remeasurements, net of tax - - (125) (125) - - (125)
Movements in revaluation reserve in respect of financial assets held at fair
value through other comprehensive income, net of tax:
Debt securities - 143 - 143 - - 143
Gains and losses attributable to own credit risk, net of tax - - 45 45 - - 45
Movements in cash flow hedging reserve, net of tax - 886 - 886 - - 886
Movements in foreign currency translation reserve, net of tax - 42 - 42 - - 42
Total other comprehensive loss - 1,071 (80) 991 - - 991
Total comprehensive (loss) income(1) - 1,071 1,629 2,700 215 16 2,931
Transactions with owners
Dividends - - (640) (640) - - (640)
Distributions on other equity instruments - - - - (215) - (215)
Issue of other equity instruments - - (9) (9) 753 - 744
Redemptions of other equity instruments - - 47 47 (687) - (640)
Capital contributions received - - 83 83 - - 83
Return of capital contributions - - (1) (1) - - (1)
Changes in non-controlling interests - - 20 20 - (20) -
Total transactions with owners - - (500) (500) (149) (20) (669)
Realised gains and losses on equity shares held at fair value through other - - - - - - -
comprehensive income
At 30 June 2025(2) 2,174 3,460 30,541 36,175 5,758 76 42,009
(1) Total comprehensive income attributable to owners of the parent was
£2,915 million.
(2) Total equity attributable to owners of the parent was £41,933 million.
The accompanying notes are an integral part of the condensed consolidated
half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) (continued)
Attributable to ordinary shareholders
Share Other Retained Total Other Non- Total
capital and reserves profits £m equity controlling £m
premium £m £m instruments interests
£m £m £m
At 1 January 2024 2,174 2,395 30,786 35,355 5,018 58 40,431
Comprehensive income
Profit for the period - - 1,824 1,824 172 11 2,007
Other comprehensive income
Post-retirement defined benefit scheme remeasurements, net of tax - - (258) (258) - - (258)
Movements in revaluation reserve in respect of financial assets held at fair
value through other comprehensive income, net of tax:
Debt securities - 72 - 72 - - 72
Gains and losses attributable to own credit risk, net of tax - - (62) (62) - - (62)
Movements in cash flow hedging reserve, net of tax - (261) - (261) - - (261)
Movements in foreign currency translation reserve, net of tax - (39) - (39) - - (39)
Total other comprehensive loss - (228) (320) (548) - - (548)
Total comprehensive (loss) income(1) - (228) 1,504 1,276 172 11 1,459
Transactions with owners
Dividends - - (2,140) (2,140) - - (2,140)
Distributions on other equity instruments - - - - (172) - (172)
Capital contributions received - - 61 61 - - 61
Total transactions with owners - - (2,079) (2,079) (172) - (2,251)
Realised gains and losses on equity shares held at fair value through other - - - - - - -
comprehensive income
At 30 June 2024(2) 2,174 2,167 30,211 34,552 5,018 69 39,639
(1) Total comprehensive income attributable to owners of the parent was
£1,448 million.
(2) Total equity attributable to owners of the parent was £39,570 million.
The accompanying notes are an integral part of the condensed consolidated
half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) (continued)
Attributable to ordinary shareholders
Share Other Retained Total Other Non- Total
capital and reserves profits £m equity controlling £m
premium £m £m instruments interests
£m £m £m
At 1 July 2024 2,174 2,167 30,211 34,552 5,018 69 39,639
Comprehensive income
Profit for the period - - 1,277 1,277 191 11 1,479
Other comprehensive income
Post-retirement defined benefit scheme remeasurements, net of tax - - (306) (306) - - (306)
Movements in revaluation reserve in respect of financial assets held at fair
value through other comprehensive income, net of tax:
Debt securities - 1 - 1 - - 1
Gains and losses attributable to own credit risk, net of tax - - 6 6 - - 6
Movements in cash flow hedging reserve, net of tax - 247 - 247 - - 247
Movements in foreign currency translation reserve, net of tax - (26) - (26) - - (26)
Total other comprehensive income (loss) - 222 (300) (78) - - (78)
Total comprehensive income(1) - 222 977 1,199 191 11 1,401
Transactions with owners
Dividends - - (1,850) (1,850) - - (1,850)
Distributions on other equity instruments - - - - (191) - (191)
Issue of other equity instruments - - (6) (6) 1,174 - 1,168
Repurchases and redemptions of other equity instruments - - - - (500) - (500)
Capital contributions received - - 81 81 - - 81
Return of capital contributions - - (1) (1) - - (1)
Total transactions with owners - - (1,776) (1,776) 483 - (1,293)
Realised gains and losses on equity shares held at fair value through other - - - - - - -
comprehensive income
At 31 December 2024(2) 2,174 2,389 29,412 33,975 5,692 80 39,747
(1) Total comprehensive income attributable to owners of the parent was
£1,390 million.
(2) Total equity attributable to owners of the parent was £39,667 million.
The accompanying notes are an integral part of the condensed consolidated
half-year financial statements.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
Half-year Half-year
to 30 Jun to 30 Jun
2025 2024
£m £m
Cash flows from operating activities
Profit before tax 2,758 2,818
Adjustments for:
Change in operating assets (6,786) (11,747)
Change in operating liabilities 7,543 2,077
Non-cash and other items 2,282 2,270
Tax paid(1) (1,495) (765)
Tax refunded(1) 200 350
Net cash (used in) provided by operating activities 4,502 (4,997)
Cash flows (used in) provided by investing activities
Purchase of financial assets (7,379) (5,800)
Proceeds from sale and maturity of financial assets 4,739 5,261
Purchase of fixed assets(1) (1,970) (1,989)
Purchase of other intangible assets(1) (556) (647)
Proceeds from sale of fixed assets(1) 650 604
Proceeds from sale of goodwill and other intangible assets(1) 2 -
Net cash used in investing activities (4,514) (2,571)
Cash flows used in financing activities
Dividends paid to ordinary shareholders (640) (2,140)
Distributions on other equity instruments (215) (172)
Return of capital contributions (1) -
Interest paid on subordinated liabilities (297) (194)
Proceeds from issue of subordinated liabilities 1,761 -
Proceeds from issue of other equity instruments 744 -
Repayment of subordinated liabilities (904) -
Repurchases and redemptions of other equity instruments (640) -
Borrowings from parent company 3,557 3,168
Repayments of borrowings to parent company (2,124) (1,001)
Interest paid on borrowings from parent company (210) (198)
Net cash used in financing activities 1,031 (537)
Effects of exchange rate changes on cash and cash equivalents 92 (66)
Change in cash and cash equivalents 1,111 (8,171)
Cash and cash equivalents at beginning of period 49,712 66,538
Cash and cash equivalents at end of period 50,823 58,367
(1) Previously presented in aggregate.
Interest received was £13,758 million (30 June 2024: £13,558 million) and
interest paid was £7,585 million (30 June 2024: £6,709 million).
Cash and cash equivalents comprise cash and non-mandatory balances with
central banks and amounts due from banks with an original maturity of less
than three months.
The accompanying notes are an integral part of the condensed consolidated
half-year financial statements.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
Note 1: Basis of preparation and accounting policies
These condensed consolidated half-year financial statements as at and for the
period to 30 June 2025 have been prepared in accordance with the Disclosure
Guidance and Transparency Rules of the Financial Conduct Authority (FCA) and
with International Accounting Standard 34 (IAS 34), Interim Financial
Reporting as adopted by the United Kingdom and comprise the results of Lloyds
Bank plc (the Bank) together with its subsidiaries (the Group). They do not
include all of the information required for full annual financial statements
and should be read in conjunction with the Group's consolidated financial
statements as at and for the year ended 31 December 2024 which complied with
international accounting standards in conformity with the requirements of the
Companies Act 2006 and were prepared in accordance with IFRS® Accounting
Standards as issued by the International Accounting Standards Board (IASB).
Copies of the 2024 annual report and accounts are available on the Lloyds
Banking Group's website and are also available upon request from Investor
Relations, Lloyds Banking Group plc, 33 Old Broad Street, London, EC2N 1HZ.
The directors consider that it is appropriate to continue to adopt the going
concern basis in preparing these condensed consolidated half-year financial
statements. In reaching this assessment, the directors have taken into account
the uncertainties affecting the UK economy and their potential effects upon
the Group's performance and projected funding and capital position; the impact
of further stress scenarios has also been considered. On this basis, the
directors are satisfied that the Group will maintain adequate levels of
funding and capital for the foreseeable future.
The Group's accounting policies are consistent with those applied by the Group
in its financial statements for the year ended 31 December 2024 and there have
been no changes in the Group's methods of computation.
Net investment return on assets held to back insurance and investment
contracts, previously shown within net trading income, is now presented
separately on the face of the income statement. Net finance expense in respect
of insurance and investment contracts, previously shown outside total income
in the income statement, is now included within other income as part of total
income. This change has been made to represent more clearly the impact of the
Group's insurance business on the results. Comparative periods are represented
on a consistent basis.
The IASB has issued an amendment to IAS 21 The Effects of Changes in Foreign
Exchange Rates, effective 1 January 2025. This amendment has not had a
significant impact on the Group.
Future accounting developments
There are a number of new accounting pronouncements issued by the IASB with an
effective date of 1 January 2027. This includes IFRS 18 Presentation and
Disclosure in Financial Statements which replaces IAS 1 Presentation of
Financial Statements and IFRS 19 Subsidiaries without Public Accountability:
Disclosures. The impact of these standards is being assessed and they have not
yet been endorsed for use in the UK.
The IASB has issued its annual improvements and a number of amendments to the
IFRS Accounting Standards effective 1 January 2026, including Amendments to
IFRS 9 Financial Instruments and Amendments to IFRS 7 Financial Instruments
Disclosure. These improvements and amendments are not expected to have a
significant impact on the Group.
The Bank's ultimate parent undertaking and controlling party is Lloyds Banking
Group plc which is incorporated in Scotland. Lloyds Banking Group plc has
published consolidated accounts for the year to 31 December 2024 and copies
may be obtained from Investor Relations, Lloyds Banking Group plc, 33 Old
Broad Street, London, EC2N 1HZ and are available for download from
www.lloydsbankinggroup.com.
The financial information contained in this document does not constitute
statutory accounts within the meaning of section 434 of the Companies Act
2006 (the Act). The statutory accounts for the year ended 31 December 2024
were approved by the directors on 27 February 2025 and were delivered to the
Registrar of Companies on 1 April 2025. The independent auditors' report on
those accounts was unqualified and did not include a statement under sections
498(2) (accounting records or returns inadequate or accounts not agreeing with
records and returns) or 498(3) (failure to obtain necessary information and
explanations) of the Act.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 2: Critical accounting judgements and key sources of estimation
uncertainty
The preparation of the Group's financial statements in accordance with IFRS
requires management to make judgements, estimates and assumptions in applying
the accounting policies that affect the reported amounts of assets,
liabilities, income and expenses. Due to the inherent uncertainty in making
estimates, actual results reported in future periods may be based upon amounts
which differ from these estimates. Estimates, judgements and assumptions are
continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be
reasonable under the circumstances. In preparing the financial statements, the
Group has considered the impact of climate-related risks on its financial
position and performance. While the effects of climate change represent a
source of uncertainty, the Group does not consider there to be a material
impact on its judgements and estimates from the physical, transition and other
climate-related risks in the short-term.
The Group's significant judgements, estimates and assumptions are unchanged
compared to those disclosed in note 3 of the Group's 2024 financial
statements. Further information on the critical accounting judgements and key
sources of estimation uncertainty for the allowance for expected credit losses
is set out in note 10.
Note 3: Segmental analysis
The Group provides a wide range of banking and financial services in the UK
and in certain locations overseas. The Group Executive Committee (GEC) of the
Lloyds Banking Group remains the chief operating decision maker ,as defined by
IFRS 8 Operating Segments, for the Group.
Half-year to 30 June 2025 Retail Commercial Other Total
£m Banking £m £m
£m
Net interest income 4,710 1,623 213 6,546
Other income 1,251 544 494 2,289
Total income 5,961 2,167 707 8,835
Operating expenses (3,715) (1,156) (764) (5,635)
Impairment (charge) credit (342) (99) (1) (442)
Profit before tax 1,904 912 (58) 2,758
External income (expense) 7,348 1,431 56 8,835
Inter-segment (expense) income (1,387) 736 651 -
Segment income 5,961 2,167 707 8,835
Half-year to 30 June 2024 Retail Commercial Other Total
£m Banking £m £m
£m
Net interest income 4,429 1,636 157 6,222
Other income 837 521 796 2,154
Total income 5,266 2,157 953 8,376
Operating expenses (3,563) (1,149) (724) (5,436)
Impairment (charge) credit (195) 69 4 (122)
Profit before tax 1,508 1,077 233 2,818
External income (expense) 6,254 2,829 (707) 8,376
Inter-segment (expense) income (988) (672) 1,660 -
Segment income 5,266 2,157 953 8,376
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 3: Segmental analysis (continued)
Retail Commercial Other Total
£m Banking £m £m
£m
At 30 June 2025
External assets 396,235 82,448 143,874 622,557
External liabilities 329,490 142,093 108,965 580,548
At 31 December 2024
External assets 386,199 82,731 142,283 611,213
External liabilities 324,727 135,396 111,343 571,466
Note 4: Net fee and commission income
Half-year Half-year
to 30 Jun to 30 Jun
2025 2024
£m £m
Fee and commission income:
Current accounts 340 312
Credit and debit card fees 634 629
Commercial banking and treasury fees 94 92
Factoring 34 35
Other fees and commissions 100 118
Total fee and commission income 1,202 1,186
Fee and commission expense (597) (883)
Net fee and commission income 605 303
Current account and credit and debit card fees principally arise in Retail;
commercial banking, treasury and factoring fees arise in Commercial Banking.
Note 5: Operating expenses
Half-year Half-year
to 30 Jun to 30 Jun
2025 2024
£m £m
Staff costs 2,362 2,287
Premises and equipment costs 236 182
Depreciation and amortisation 1,722 1,659
Other 1,315 1,308
Total operating expenses 5,635 5,436
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 6: Retirement benefit obligations
The Group's post-retirement defined benefit scheme obligations are comprised
as follows:
At 30 Jun At 31 Dec
2025 2024
£m £m
Defined benefit pension schemes:
Present value of funded obligations (26,310) (27,118)
Fair value of scheme assets 29,183 30,063
Net pension scheme asset 2,873 2,945
Other post-retirement schemes (39) (39)
Total amounts recognised in the balance sheet 2,834 2,906
Recognised on the balance sheet as:
Retirement benefit assets 2,953 3,028
Retirement benefit obligations (119) (122)
Total amounts recognised in the balance sheet 2,834 2,906
Movements in the Group's net post-retirement defined benefit scheme asset
during the period were as follows:
£m
Asset at 1 January 2025 2,906
Income statement credit 15
Employer contributions 81
Remeasurement (168)
Asset at 30 June 2025 2,834
The principal assumptions used in the valuations of the defined benefit
pension schemes were as follows:
At 30 Jun At 31 Dec
2025 2024
% %
Discount rate 5.61 5.55
Rate of inflation:
Retail Price Index (RPI) 2.75 2.97
Consumer Price Index (CPI) 2.25 2.52
Rate of salary increases 0.00 0.00
Weighted-average rate of increase for pensions in payment 2.67 2.69
In July 2024, the Court of Appeal handed down a judgment (Virgin Media Limited
v NTL Pension Trustees Limited) which potentially has implications for the
validity of amendments made by pension schemes that were contracted out on a
salary-related basis between 6 April 1997 and the abolition of contracting-out
in 2016. The Government in June 2025, recognising that schemes and sponsoring
employers need clarity around scheme liabilities, announced it will introduce
legislation to give affected pension schemes the ability to retrospectively
obtain written actuarial confirmation that historic benefit changes met the
necessary standards. The Group is carrying out a review of scheme amendments
to decide whether any subsequent actions are required. The Group will continue
to monitor developments.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 7: Impairment
Half-year Half-year
to 30 Jun to 30 Jun
2025 2024
£m £m
Loans and advances to banks - (4)
Loans and advances to customers 490 169
Debt securities - (1)
Financial assets held at amortised cost 490 164
Financial assets at fair value through other comprehensive income - (2)
Loan commitments and financial guarantees (48) (40)
Total impairment charge (credit) 442 122
There was a £70 million charge in respect of residual value impairment and
voluntary terminations within the Group's UK Motor Finance business in the
current period (half-year to 30 June 2024: £10 million).
Note 8: Tax
In accordance with IAS 34, the Group's income tax expense for the half-year to
30 June 2025 is based on the best estimate of the weighted-average annual
income tax rate expected for the full financial year. The tax effects of
one-off items are not included in the weighted-average annual income tax rate,
but are recognised in the relevant period.
An explanation of the relationship between tax expense and accounting profit
is set out below:
Half-year Half-year
to 30 Jun to 30 Jun
2025 2024
£m £m
Profit before tax 2,758 2,818
UK corporation tax thereon at 25.0% (2024: 25.0%) (689) (704)
Impact of surcharge on banking profits (81) (78)
Non-deductible costs: conduct charges 1 4
Other non-deductible costs (108) (98)
Non-taxable income - 33
Tax relief on coupons on other equity instruments 54 42
Tax-exempt gains on disposals 2 -
Remeasurement of deferred tax due to rate changes - 3
Differences in overseas tax rates 5 (3)
Adjustments in respect of prior years (2) (10)
Tax expense (818) (811)
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 9: Fair values of financial assets and liabilities
The valuations of financial instruments have been classified into three levels
according to the quality and reliability of information used to determine
those fair values. Note 16 to the Group's financial statements for the year
ended 31 December 2024 details the definitions of the three levels in the
fair value hierarchy.
Financial instruments classified as financial assets at fair value through
profit or loss, derivative financial instruments, financial assets at fair
value through other comprehensive income and financial liabilities at fair
value through profit or loss are recognised at fair value.
The Group manages valuation adjustments for its derivative exposures on a net
basis; the Group determines their fair values on the basis of their net
exposures. In all other cases, fair values of financial assets and liabilities
measured at fair value are determined on the basis of their gross exposures.
The following tables provide an analysis of the financial assets and
liabilities of the Group that are carried at fair value in the Group's
consolidated balance sheet, grouped into levels 1 to 3 based on the degree to
which the fair value is observable. There were no significant transfers
between level 1 and level 2 during the period.
Financial assets Level 1 Level 2 Level 3 Total
£m £m £m £m
At 30 June 2025
Financial assets at fair value through profit or loss:
Loans and advances to customers - 1,828 256 2,084
Equity shares 631 - 4 635
Total financial assets at fair value through profit or loss 631 1,828 260 2,719
Financial assets at fair value through other comprehensive income:
Debt securities 19,284 14,165 49 33,498
Equity shares - - - -
Total financial assets at fair value through other comprehensive income 19,284 14,165 49 33,498
Derivative financial instruments - 3,736 - 3,736
Total financial assets carried at fair value 19,915 19,729 309 39,953
At 31 December 2024
Financial assets at fair value through profit or loss:
Loans and advances to customers - 1,813 276 2,089
Equity shares 228 - 4 232
Total financial assets at fair value through profit or loss 228 1,813 280 2,321
Financial assets at fair value through other comprehensive income:
Debt securities 16,278 14,018 48 30,344
Equity shares - - - -
Total financial assets at fair value through other comprehensive income 16,278 14,018 48 30,344
Derivative financial instruments - 4,235 - 4,235
Total financial assets carried at fair value 16,506 20,066 328 36,900
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 9: Fair values of financial assets and liabilities (continued)
Financial liabilities Level 1 Level 2 Level 3 Total
£m £m £m £m
At 30 June 2025
Financial liabilities at fair value through profit or loss - 4,345 18 4,363
Derivative financial instruments - 5,043 127 5,170
Total financial liabilities carried at fair value - 9,388 145 9,533
At 31 December 2024
Financial liabilities at fair value through profit or loss - 4,608 22 4,630
Derivative financial instruments - 5,644 143 5,787
Total financial liabilities carried at fair value - 10,252 165 10,417
Valuation control framework
Key elements of the valuation control framework include model validation
(incorporating pre-trade and post-trade testing), product implementation
review and independent price verification. The framework covers processes for
all 3 levels in the fair value hierarchy. Formal committees meet quarterly to
discuss and approve valuations in more judgemental areas.
Transfers into and out of level 3 portfolios
Transfers out of level 3 portfolios arise when inputs that could have a
significant impact on the instrument's valuation become market observable;
conversely, transfers into the portfolios arise when sources of data cease to
be observable.
Valuation methodology
For level 2 and level 3 portfolios, there is no significant change to the
valuation methodology (techniques and inputs) disclosed in the Group's
financial statements for the year ended 31 December 2024 applied to these
portfolios.
Movements in level 3 portfolio
The tables below analyse movements in the level 3 financial assets portfolio.
Financial Financial Total
assets at assets at financial
fair value fair value assets
through through other carried at
profit or loss comprehensive fair value
£m income £m
£m
At 1 January 2025 280 48 328
Exchange and other adjustments - 2 2
(Losses) gains recognised in the income statement within other (16) 2 (14)
Losses recognised in other comprehensive income within the revaluation reserve - (1) (1)
in respect of financial assets at fair value through other comprehensive
income
Purchases/increases to customer loans 14 - 14
Sales/repayments of customer loans (18) (2) (20)
At 30 June 2025 260 49 309
(Losses) gains recognised in the income statement, within other income, (16) 3 (13)
relating to the change in fair value of those assets held at 30 June 2025
At 1 January 2024 270 53 323
Exchange and other adjustments - (1) (1)
Gains recognised in the income statement within other income 26 - 26
Purchases/increases to customer loans 6 - 6
Sales/repayments of customer loans (16) (1) (17)
At 30 June 2024 286 51 337
Gains recognised in the income statement, within other income, relating to the 26 - 26
change in fair value of those assets held at 30 June 2024
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 9: Fair values of financial assets and liabilities (continued)
The tables below analyse movements in the level 3 financial liabilities
portfolio.
Financial Derivative liabilities Total
liabilities £m financial
at fair value liabilities
through carried at
profit or loss fair value
£m £m
At 1 January 2025 22 143 165
Gains recognised in the income statement within other income (2) (4) (6)
Redemptions (2) (12) (14)
At 30 June 2025 18 127 145
Gains recognised in the income statement, within other income, (2) (3) (5)
relating to the change in fair value of those liabilities held at 30 June 2025
At 1 January 2024 23 139 162
Losses recognised in the income statement within other income 2 19 21
Redemptions (2) (10) (12)
At 30 June 2024 23 148 171
Losses (gains) recognised in the income statement, within other income, 2 (21) (19)
relating to the change in fair value of those liabilities held at 30 June 2024
Sensitivity of level 3 valuations
The tables below set out the effects of reasonably possible alternative
assumptions for categories of level 3 financial assets and financial
liabilities.
Effect of reasonably
possible alternative
assumptions(1)
At 30 June 2025 Valuation Significant unobservable inputs(2) Carrying value Favourable changes Unfavourable
techniques £m £m changes
£m
Financial assets at fair value through profit or loss
Loans and advances to customers Discounted cash flows Interest rate spreads 256 19 (18)
(+/- 50bps)
Equity investments n/a 4 - -
260
Financial assets at fair value through other comprehensive income 49 2 (2)
Level 3 financial assets carried at fair value 309
Financial liabilities at fair value through profit or loss 18 1 (1)
Derivative financial liabilities
Interest rate derivatives Option pricing model Interest rate volatility (12%/171%) 5 - -
Shared appreciation rights Market values - property valuation HPI (+/- 1%) 122 12 (11)
127
Level 3 financial liabilities carried at fair value 145
(1) Where the exposure to an unobservable input is managed on a net basis,
only the net impact is shown in the table.
(2) Ranges are shown where appropriate and represent the highest and lowest
inputs used in the level 3 valuations.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 9: Fair values of financial assets and liabilities (continued)
Sensitivity of level 3 valuations (continued)
Effect of reasonably
possible alternative
assumptions(1)
At 31 December 2024 Valuation Significant Carrying value Favourable changes Unfavourable changes
techniques unobservable inputs(2) £m £m £m
Financial assets at fair value through profit or loss
Loans and advances to customers Discounted cash flows Interest rate spreads 276 19 (19)
(+/- 50bps)
Equity investments n/a 4 1 (1)
280
Financial assets at fair value through other comprehensive income 48 2 (2)
Level 3 financial assets carried at fair value 328
Financial liabilities at fair value through profit or loss 22 1 (1)
Derivative financial liabilities
Interest rate derivatives Option pricing model Interest rate volatility (11%/183%) 13 - -
Shared appreciation rights Market values - property valuation HPI (+/- 1%) 130 12 (11)
143
Level 3 financial liabilities carried at fair value 165
(1) Where the exposure to an unobservable input is managed on a net basis,
only the net impact is shown in the table.
(2) Ranges are shown where appropriate and represent the highest and lowest
inputs used in the level 3 valuations.
Unobservable inputs
Significant unobservable inputs affecting the valuation of debt securities and
derivatives are unchanged from those described in the Group's financial
statements for the year ended 31 December 2024.
Reasonably possible alternative assumptions
Valuation techniques applied to many of the Group's level 3 instruments often
involve the use of two or more inputs whose relationship is interdependent.
The calculation of the effect of reasonably possible alternative assumptions
included in the table above reflects such relationships and is unchanged from
that described in note 16 to the Group's financial statements for the year
ended 31 December 2024.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 9: Fair values of financial assets and liabilities (continued)
The table below summarises the carrying values of financial assets and
liabilities measured at amortised cost in the Group's consolidated balance
sheet. The fair values presented in the table are at a specific date and may
be significantly different from the amounts which will actually be paid or
received on the maturity or settlement date.
At 30 June 2025 At 31 December 2024
Carrying Fair Carrying Fair
value value value value
£m £m £m £m
Financial assets
Loans and advances to banks 5,629 5,629 6,433 6,433
Loans and advances to customers 452,642 448,347 441,907 438,094
Reverse repurchase agreements 39,864 39,864 44,143 44,143
Debt securities 10,948 11,016 11,854 11,808
Due from fellow Lloyds Banking Group undertakings 897 897 560 560
Financial liabilities
Deposits from banks 5,388 5,388 3,144 3,144
Customer deposits 461,771 462,617 451,794 452,607
Repurchase agreements 38,248 38,248 37,760 37,760
Due to fellow Lloyds Banking Group undertakings 3,804 3,804 4,049 4,049
Debt securities in issue 42,103 42,213 45,281 45,382
Subordinated liabilities 7,842 8,883 7,211 7,304
The carrying amounts of cash and balances at central banks and notes in
circulation are a reasonable approximation of their fair values.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 10: Allowance for expected credit losses
The calculation of the Group's allowance for expected credit loss allowances
requires the Group to make a number of judgements, assumptions and estimates.
These are set out in full in note 19 to the Group's financial statements for
the year ended 31 December 2024, with the most significant set out below.
The table below analyses total ECL allowance by portfolio, separately
identifying the amounts that have been modelled, those that have been
individually assessed and those arising through the application of judgemental
adjustments.
At 30 June 2025 Modelled Individually Judgemental Total
ECL assessed adjustments ECL
£m £m £m £m
UK mortgages 611 - 98 709
Credit cards 650 - 9 659
Other Retail 908 - 102 1,010
Commercial Banking 613 432 (50) 995
Other 1 - - 1
Total 2,783 432 159 3,374
At 31 December 2024
UK mortgages 720 - 132 852
Credit cards 681 - (7) 674
Other Retail 860 - 90 950
Commercial Banking 877 354 (255) 976
Other 1 - - 1
Total 3,139 354 (40) 3,453
Adjustments to modelled ECL
UK mortgages: £98 million (31 December 2024: £132 million)
These adjustments principally comprise:
Repossession risk: £85 million (31 December 2024: £110 million)
Additional ECL continues to be held judgementally to capture the potential
repossession and recovery risk from specific subsets of largely long-term
defaulted cases. This is alongside an adjustment to capture a longer duration
between default and repossession than model assumptions use on existing and
future defaults. The reduction in the period reflects latest data points on
the population judged at risk.
Adjustment for specific segments: £13 million (31 December 2024: £13
million)
The Group monitors risks across specific segments of its portfolios which may
not be fully captured through collective models. The judgement for fire safety
and cladding uncertainty remains in place as the only Mortgages segment
sufficiently material to address, given evidence of cases with defective
cladding, or other fire safety issues.
Credit cards: £9 million (31 December 2024: £(7) million) and Other Retail:
£102 million (31 December 2024: £90 million)
These adjustments principally comprise:
Lifetime extension: Credit cards: £50 million (31 December 2024: £55
million) and Other Retail: £10 million (31 December 2024: £10 million)
An adjustment is required to extend the lifetime used for Stage 2 exposures on
Retail revolving products from a three-year modelled lifetime, which reflected
the outcome data available when the ECL models were developed, to a more
representative lifetime. Incremental defaults beyond year three are calculated
through the extrapolation of the default trajectory observed throughout the
three years and beyond.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 10: Allowance for expected credit losses (continued)
Adjustments to loss rates: Credit cards: £(45) million (31 December 2024:
£(57) million) and Other Retail: £53 million (31
December 2024: £47 million)
A number of adjustments are made to the loss given default (LGD) assumptions
used within unsecured and motor credit models. For unsecured portfolios, the
adjustments reflect the impact of changes in collection debt sale strategy on
the Group's LGD models, incorporating up to date customer performance and
forward flow debt sale pricing. For UK Motor Finance, within Other Retail, the
adjustment captures the latest outlook on used car prices.
Commercial Banking: £(50) million (31 December 2024: £(255) million)
These adjustments principally comprise:
Corporate insolvency rates: £(151) million (31 December 2024: £(248)
million)
The volume of UK corporate insolvencies continues to exhibit an elevated trend
beyond December 2019 levels, revealing a marked misalignment between observed
UK corporate insolvencies and the Group's equivalent credit performance. This
dislocation gives rise to uncertainty over the drivers of the observed trends
in the metric and the appropriateness of the Group's Commercial Banking model
response which uses observed UK corporate insolvencies data to anchor future
loss estimates to. Given the Group's asset quality remains robust with low
defaults, a negative adjustment is applied by reverting judgementally to the
long-term average of the insolvency rate. The scale of the negative adjustment
reduced in the period reflecting both the reduction in observed actual UK
corporate insolvencies rates, narrowing the gap of the misalignment, as well
from a one-off change due to the interaction with the implementation of loss
rate model enhancements in the period.
Adjustments for loss given defaults (LGDs): £40 million (31 December 2024:
£(80) million)
In preceding years, adjustments have been required to mitigate limitations
identified in the modelling approach which were causing loss given defaults to
be inflated. These included the lack of benefit from amortisation of exposures
relative to collateral values at default, and the need to reflect an
exposure-weighted calculation. These two adjustments have been released
following respective enhancements to models. One remaining adjustment remains
for a specific segment of the SME portfolio which judgementally applies a more
appropriate blended LGD rate from credit risk profile segments more aligned to
experience.
Commercial Real Estate (CRE) price reduction: £10 million (31 December 2024:
£35 million)
This adjustment recognises the potential impact on loss rates from valuations
on specific CRE sectors where evidence suggests valuations may lag achievable
levels, notably in cases of stressed sale. The reduction in the period
reflects stabilisation in valuations and improved confidence in the CRE
sector.
Corporate income gearing (CIG) adjustment: £nil (31 December 2024: £36
million)
An adjustment was raised at 31 December 2024, based upon the assessment of
Corporate Income Gearing, a model parameter for affordability used in
Commercial Banking. This adjustment reversed the modelled ECL release seen
from updating CIG drivers (interest rates), given interest rates had merely
reached a plateau which translated into a slower year-on-year increase. This
slowdown gave a modelled ECL release not judged representative of the
continued pressure on borrowers and business margins. However, the maintenance
of those improvements in drivers over the first half of 2025 (including
sustained lower base rates) gives support for the modelled release to now be
recognised, removing the judgemental adjustment.
Global tariff and geo-political disruption risks: £49 million (31 December
2024: £nil)
This new adjustment was raised in the first half of 2025 to recognise the
potential risks to specific drivers across various corporate sectors not
reflected in broad macroeconomic model drivers. These are potential nuanced
risks to businesses inherent in the base case which could also worsen in the
downside scenarios. This assessment is judgemental and apportioned across all
sectors given the uncertainty of how these risks would emerge.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 10: Allowance for expected credit losses (continued)
Base case and MES economic assumptions
The Group's base case economic scenario has been updated to reflect ongoing
geopolitical developments and changes in domestic economic policy. The Group's
updated base case scenario has three conditioning assumptions. First, global
conflicts do not lead to major discontinuities in commodity prices or global
trade. Second, the US will impose tariffs on countries with a bilateral trade
deficit after the Liberation Day 90 day pause expires, resulting in an
increased effective tariff rate relative to prior assumptions. Third, the UK
Industrial Strategy and Spending Review are not assumed to substantially
change the UK fiscal outlook.
Based on these assumptions and incorporating the economic data published in
the second quarter of 2025, the Group's base case scenario is for a slow
expansion in gross domestic product (GDP) and a further rise in the
unemployment rate alongside small gains in residential and commercial property
prices. With underlying inflationary pressures expected to recede, gradual
cuts in UK Bank Rate are expected to continue during 2025, reaching a
'neutral' policy stance in 2026. Risks around this base case economic view lie
in both directions and are largely captured by the generation of alternative
economic scenarios.
The Group has taken into account the latest available information at the
reporting date in defining its base case scenario and generating alternative
economic scenarios. The scenarios include forecasts for key variables as at
the second quarter of 2025. Actuals for this period, or restatements of past
data, may have since emerged prior to publication and have not been included.
The Group's approach to generating alternative economic scenarios is set out
in detail in note 19 to the financial statements for the year ended 31
December 2024. For June 2025, the Group continues to judge it appropriate to
include a non-modelled severe downside scenario for Group ECL calculations.
The scenario is now generated as a simple average of a fully modelled severe
scenario, better representing shocks to demand, and a scenario with higher
paths for UK Bank Rate and CPI inflation, as a representation of shocks to
supply. The combined 'adjusted' scenario used in ECL modelling is considered
to better reflect the risks around the Group's base case view in an economic
environment where demand and supply shocks are more balanced.
Scenarios by year
The key UK economic assumptions made by the Group are shown in the following
tables across a number of measures explained below.
Annual assumptions
Gross domestic product (GDP) growth and Consumer Price Index (CPI) inflation
are presented as an annual change, house price growth and commercial real
estate price growth are presented as the growth in the respective indices over
each year. Unemployment rate and UK Bank Rate are averages over the year.
Five-year average
The five-year average reflects the average annual growth rate, or level, over
the five-year period. It includes movements within the current reporting year,
such that the position as of 30 June 2025 covers the five years 2025 to 2029.
The inclusion of the reporting year within the five-year period reflects the
need to predict variables which remain unpublished at the reporting date and
recognises that credit models utilise both level and annual changes. The use
of calendar years maintains a comparability between the annual assumptions
presented.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 10: Allowance for expected credit losses (continued)
At 30 June 2025 2025 2026 2027 2028 2029 2025
% % % % % to 2029 average
%
Upside
Gross domestic product growth 1.2 2.0 1.8 1.4 1.4 1.6
Unemployment rate 4.4 3.5 3.1 3.1 3.2 3.5
House price growth 3.6 6.5 7.9 6.2 4.8 5.8
Commercial real estate price growth 5.1 8.1 3.8 1.1 0.4 3.6
UK Bank Rate 4.21 4.50 4.84 5.05 5.21 4.76
CPI inflation 3.3 2.5 2.7 3.1 3.1 2.9
Base case
Gross domestic product growth 1.0 1.0 1.5 1.5 1.5 1.3
Unemployment rate 4.8 5.0 4.7 4.5 4.5 4.7
House price growth 2.6 3.0 2.3 2.5 2.8 2.6
Commercial real estate price growth 1.6 1.1 1.3 0.3 0.0 0.9
UK Bank Rate 4.13 3.56 3.50 3.50 3.50 3.64
CPI inflation 3.3 2.7 2.4 2.5 2.4 2.7
Downside
Gross domestic product growth 0.6 (1.2) 0.6 1.3 1.5 0.5
Unemployment rate 5.2 7.2 7.5 7.2 7.0 6.8
House price growth 1.6 (0.8) (5.9) (4.7) (1.8) (2.4)
Commercial real estate price growth (1.6) (6.8) (1.6) (2.3) (2.7) (3.0)
UK Bank Rate 4.02 1.90 0.99 0.68 0.46 1.61
CPI inflation 3.3 2.5 1.9 1.5 1.1 2.1
Severe downside
Gross domestic product growth 0.1 (3.0) 0.0 1.2 1.4 (0.1)
Unemployment rate 5.8 9.7 10.2 9.8 9.4 9.0
House price growth 0.8 (3.9) (13.4) (10.9) (6.3) (6.9)
Commercial real estate price growth (6.5) (16.0) (7.4) (6.7) (5.7) (8.6)
UK Bank Rate - modelled 3.88 0.68 0.11 0.03 0.01 0.94
UK Bank Rate - adjusted(1) 4.34 3.09 2.80 2.77 2.76 3.15
CPI inflation - modelled 3.3 2.5 1.4 0.5 (0.1) 1.5
CPI inflation - adjusted(1) 3.5 3.8 3.2 2.8 2.4 3.1
Probability-weighted
Gross domestic product growth 0.9 0.2 1.1 1.4 1.4 1.0
Unemployment rate 4.9 5.7 5.6 5.4 5.4 5.4
House price growth 2.4 2.2 0.0 0.1 1.1 1.2
Commercial real estate price growth 0.9 (0.9) 0.3 (1.0) (1.2) (0.4)
UK Bank Rate - modelled 4.09 3.06 2.81 2.77 2.75 3.10
UK Bank Rate - adjusted(1) 4.14 3.30 3.08 3.04 3.03 3.32
CPI inflation - modelled 3.3 2.5 2.2 2.2 2.0 2.4
CPI inflation - adjusted(1) 3.3 2.7 2.4 2.4 2.2 2.6
(1) The adjustment to UK Bank Rate and CPI inflation in the severe downside
is considered to better reflect the risks to the Group's base case view in an
economic environment where the risks of supply and demand shocks are seen as
more balanced.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 10: Allowance for expected credit losses (continued)
At 31 December 2024 2024 2025 2026 2027 2028 2024
% % % % % to 2028 average
%
Upside
Gross domestic product growth 0.8 1.9 2.2 1.5 1.4 1.6
Unemployment rate 4.3 3.5 2.8 2.7 2.8 3.2
House price growth 3.4 3.7 6.5 6.6 5.4 5.1
Commercial real estate price growth 0.7 7.8 6.7 3.2 0.5 3.7
UK Bank Rate 5.06 4.71 5.02 5.19 5.42 5.08
CPI inflation 2.6 2.8 2.6 2.9 3.0 2.8
Base case
Gross domestic product growth 0.8 1.0 1.4 1.5 1.5 1.2
Unemployment rate 4.3 4.7 4.7 4.5 4.5 4.5
House price growth 3.4 2.1 1.0 1.4 2.4 2.0
Commercial real estate price growth 0.7 0.3 2.5 1.9 0.0 1.1
UK Bank Rate 5.06 4.19 3.63 3.50 3.50 3.98
CPI inflation 2.6 2.8 2.4 2.4 2.2 2.5
Downside
Gross domestic product growth 0.8 (0.5) (0.4) 1.0 1.5 0.5
Unemployment rate 4.3 6.0 7.4 7.4 7.1 6.4
House price growth 3.4 0.6 (5.5) (6.6) (3.4) (2.4)
Commercial real estate price growth 0.7 (7.8) (3.1) (0.9) (2.3) (2.7)
UK Bank Rate 5.06 3.53 1.56 0.96 0.68 2.36
CPI inflation 2.6 2.8 2.3 1.8 1.2 2.1
Severe downside
Gross domestic product growth 0.8 (1.9) (1.5) 0.7 1.3 (0.1)
Unemployment rate 4.3 7.7 10.0 10.0 9.7 8.4
House price growth 3.4 (0.8) (12.4) (13.6) (8.8) (6.7)
Commercial real estate price growth 0.7 (17.4) (8.5) (5.5) (5.7) (7.5)
UK Bank Rate - modelled 5.06 2.68 0.28 0.08 0.02 1.62
UK Bank Rate - adjusted(1) 5.06 4.03 2.70 2.23 1.95 3.19
CPI inflation - modelled 2.6 2.8 1.9 1.0 0.1 1.7
CPI inflation - adjusted(1) 2.6 3.6 2.1 1.4 0.8 2.1
Probability-weighted
Gross domestic product growth 0.8 0.5 0.8 1.2 1.4 1.0
Unemployment rate 4.3 5.0 5.5 5.4 5.3 5.1
House price growth 3.4 1.8 (0.7) (1.0) 0.4 0.8
Commercial real estate price growth 0.7 (1.7) 1.0 0.7 (1.1) (0.1)
UK Bank Rate - modelled 5.06 4.00 3.09 2.90 2.88 3.59
UK Bank Rate - adjusted(1) 5.06 4.13 3.33 3.12 3.08 3.74
CPI inflation - modelled 2.6 2.8 2.4 2.2 1.9 2.4
CPI inflation - adjusted(1) 2.6 2.9 2.4 2.3 2.0 2.4
(1) The adjustment to UK Bank Rate and CPI inflation in the severe downside
is considered to better reflect the risks to the Group's base case view in an
economic environment where the risks of supply and demand shocks are seen as
more balanced.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 10: Allowance for expected credit losses (continued)
Base case scenario by quarter
Gross domestic product growth is presented quarter-on-quarter. House price
growth, commercial real estate price growth and CPI inflation are presented
year-on-year, i.e. from the equivalent quarter in the previous year.
Unemployment rate and UK Bank Rate are presented as at the end of each
quarter.
At 30 June 2025 First Second Third Fourth First Second Third Fourth
quarter quarter quarter quarter quarter quarter quarter quarter
2025 2025 2025 2025 2026 2026 2026 2026
% % % % % % % %
Gross domestic product growth 0.7 0.0 0.1 0.2 0.3 0.3 0.4 0.4
Unemployment rate 4.5 4.7 4.9 5.0 5.0 5.0 4.9 4.9
House price growth 2.9 3.1 2.7 2.6 3.7 4.0 3.5 3.0
Commercial real estate price growth 2.5 2.7 2.6 1.6 1.2 1.0 1.0 1.1
UK Bank Rate 4.50 4.25 4.00 3.75 3.75 3.50 3.50 3.50
CPI inflation 2.8 3.6 3.4 3.5 3.0 2.6 2.6 2.4
At 31 December 2024 First Second Third Fourth First Second Third Fourth
quarter quarter quarter quarter quarter quarter quarter quarter
2024 2024 2024 2024 2025 2025 2025 2025
% % % % % % % %
Gross domestic product growth 0.7 0.4 0.0 0.1 0.2 0.3 0.3 0.3
Unemployment rate 4.3 4.2 4.3 4.4 4.5 4.6 4.7 4.8
House price growth 0.4 1.8 4.6 3.4 3.6 4.0 3.0 2.1
Commercial real estate price growth (5.3) (4.7) (2.8) 0.7 1.8 1.4 0.9 0.3
UK Bank Rate 5.25 5.25 5.00 4.75 4.50 4.25 4.00 4.00
CPI inflation 3.5 2.1 2.0 2.5 2.4 3.0 2.9 2.7
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 10: Allowance for expected credit losses (continued)
Movement in expected credit loss allowance
Opening ECL at Write-offs Income Net ECL Closing ECL at
31 Dec and other(1) statement increase 30 Jun
2024 £m charge (credit) (decrease) 2025
£m £m £m £m
UK mortgages 852 (10) (133) (143) 709
Credit cards 674 (215) 200 (15) 659
Other Retail 950 (215) 275 60 1,010
Retail 2,476 (440) 342 (98) 2,378
Commercial Banking 976 (80) 99 19 995
Other 1 (1) 1 - 1
Total 3,453 (521) 442 (79) 3,374
Opening ECL at Write-offs Income Net ECL Closing ECL at
31 Dec and other(1) statement increase 30 Jun
2023 £m charge (credit) (decrease) 2024
£m £m £m £m
UK mortgages(2) 1,115 (25) (119) (144) 971
Credit cards 810 (225) 115 (110) 700
Other Retail 945 (201) 198 (3) 942
Retail 2,870 (451) 194 (257) 2,613
Commercial Banking 1,150 (99) (69) (168) 982
Other 1 3 (3) - 1
Total 4,021 (547) 122 (425) 3,596
Opening ECL at Write-offs Income Net ECL Closing ECL at
30 Jun and other(1) statement increase 31 Dec
2024 £m charge (credit) (decrease) 2024
£m £m £m £m
UK mortgages(3) 971 (44) (75) (119) 852
Credit cards 700 (181) 155 (26) 674
Other Retail 942 (175) 183 8 950
Retail 2,613 (400) 263 (137) 2,476
Commercial Banking 982 (77) 71 (6) 976
Other 1 - - - 1
Total 3,596 (477) 334 (143) 3,453
(1) Contains adjustments in respect of purchased or originated
credit-impaired financial assets.
(2) Includes £20 million within write-offs and other relating to the
securitisation of primarily legacy Retail mortgages, totalling £1.0 billion
of gross loans and advances to customers.
(3) Includes £33 million within write-offs and other relating to the
securitisation of primarily legacy Retail mortgages, totalling £1.0 billion
of gross loans and advances to customers.
( )
The total allowance for expected credit losses includes £211 million (30 June
2024: £185 million; 31 December 2024: £178 million) in respect of residual
value impairment and voluntary terminations within the Group's UK Motor
Finance business.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
(
)
Note 11: Debt securities in issue
At 30 June 2025 At 31 December 2024
At At Total At At Total
fair value amortised £m fair value amortised £m
through cost through cost
profit £m profit £m
or loss or loss
£m £m
Senior unsecured notes issued 4,344 18,877 23,221 4,608 22,902 27,510
Covered bonds - 9,674 9,674 - 11,800 11,800
Commercial paper - 6,758 6,758 - 4,797 4,797
Securitisation notes 18 5,745 5,763 22 5,185 5,207
Certificates of deposit issued - 1,049 1,049 - 597 597
4,362 42,103 46,465 4,630 45,281 49,911
Covered bonds and securitisation programmes
At 30 June 2025, the covered bonds held by external parties and those held
internally, were secured on certain loans and advances to customers amounting
to £24,510 million (31 December 2024: £26,202 million) which have been
assigned to bankruptcy remote limited liability partnerships to provide
security for issues of covered bonds by the Group. The Group retains all of
the risks and rewards associated with these loans and the partnerships are
consolidated fully with the loans retained on the Group's balance sheet.
The Group's securitisation vehicles issue notes that are held both externally
and internally, and are secured on loans and advances to customers amounting
to £27,826 million at 30 June 2025 (31 December 2024: £27,284 million), the
majority of which have been sold to bankruptcy remote structured entities. As
the structured entities are funded by the issue of debt on terms whereby the
majority of the risks and rewards of the portfolio are retained by the
subsidiary, the structured entities are consolidated fully and all of these
loans are retained on the Group's balance sheet.
Cash deposits of £3,040 million (31 December 2024: £3,225 million) which
support the debt securities issued by the structured entities, the term
advances related to covered bonds and other legal obligations, are held by the
Group.
Note 12: Provisions
Provisions Regulatory Other Total
for financial and legal £m £m
commitments provisions
and guarantees(1) £m
£m
At 1 January 2025 265 1,516 417 2,198
Exchange and other adjustments 1 - - 1
Provisions applied - (171) (271) (442)
(Credit) charge for the period (48) 35 330 317
At 30 June 2025 218 1,380 476 2,074
(1) In respect of loans and advances to customers.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 12: Provisions (continued)
Regulatory and legal provisions
In the course of its business, the Group is engaged on a regular basis in
discussions with UK and overseas regulators and other governmental authorities
on a range of matters, including legal and regulatory reviews and, from time
to time, enforcement investigations (including in relation to compliance with
applicable laws and regulations, such as those relating to prudential
regulation, consumer protection, investment advice, employment, business
conduct, systems and controls, environmental, sustainability,
competition/anti-trust, tax, anti-bribery, anti-money laundering and
sanctions). Any matters discussed or identified during such discussions and
inquiries may result in, among other things, further inquiry or investigation,
other action being taken by governmental and/or regulatory authorities,
increased costs being incurred by the Group, remediation of systems and
controls, public or private censure, restriction of the Group's business
activities and/or fines. The Group also receives complaints in connection with
its past conduct and claims brought by or on behalf of current and former
employees, customers (including their appointed representatives), investors
and other third parties and is subject to legal proceedings and other legal
actions from time to time. Any events or circumstances disclosed could have a
material adverse effect on the Group's financial position, operations or cash
flows. Provisions are held where the Group can reliably estimate a probable
outflow of economic resources. The ultimate liability of the Group may be
significantly more, or less, than the amount of any provision recognised. If
the Group is unable to determine a reliable estimate, a contingent liability
is disclosed. The recognition of a provision does not amount to an admission
of liability or wrongdoing on the part of the Group. During the half-year to
30 June 2025 the Group charged a further £35 million in respect of legal
actions and other regulatory matters and the unutilised balance at 30 June
2025 was £1,380 million (31 December 2024: £1,516 million). The most
significant items are outlined below.
Motor commission review
The Group recognised a £450 million provision in 2023 for the potential
impact of the FCA review into historical motor finance commission arrangements
and sales announced in January 2024. In the fourth quarter of 2024, a further
£700 million provision was recognised in relation to motor finance
commission arrangements, in light of the Court of Appeal (CoA) decisions
handed down in their judgment in Wrench, Johnson and Hopcraft (WJH) in October
2024, which goes beyond the scope of the original FCA motor finance
commissions review.
The CoA judgment in WJH determined that motor dealers acting as credit brokers
owe certain duties to disclose to their customers commission payable to them
by lenders, and that lenders will be liable for dealers' non-disclosures. This
sets a higher bar for the disclosure of and consent to the existence, nature,
and quantum of any commission paid than had been understood to be required or
applied across the motor finance industry prior to the decision. The Group's
understanding of compliant disclosure was built on FCA and other regulatory
guidance and previous legal authorities. These CoA decisions relate to
commission disclosure and consent obligations which go beyond the scope of the
current FCA motor finance commissions review. The Supreme Court granted the
relevant lenders permission to appeal the WJH judgment and the substantive
hearing concluded on 3 April 2025. As of 23 July 2025, the judgment is still
pending.
Following the WJH decision delivered by the CoA, the FCA extended its
temporary complaint handling rules in relation to discretionary commission
arrangements (DCA) complaints to include non-DCA commission complaints until
December 2025. In June 2025, the FCA announced that it will confirm within six
weeks of the Supreme Court decision whether it intends to propose a redress
scheme and its timeframe for consultation on that scheme. In addition, there
are a number of other relevant judicial proceedings which may influence the
eventual outcome, including a judicial review (which is now subject to appeal)
of a final decision by the Financial Ombudsman Service (FOS) against another
lender that was heard in October 2024.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 12: Provisions (continued)
The Group continues to receive complaints as well as claims in the County
Courts in respect of motor finance commissions. A large number of those claims
have been stayed, as has a claim in the Competition Appeal Tribunal.
In establishing the provision estimate, the Group has considered a number of
scenarios to address uncertainties around a number of key assumptions. These
include a range of potential Supreme Court outcomes, regulatory responses
including steps that the FCA may take, and outcomes in relation to redress.
Other key assumptions include applicable commission models, commission rates,
time periods, response rates, uphold rates, levels of redress / interest
applied and costs to deliver. The Group will continue to assess developments
and potential impacts, including the outcome of the appeals, any announcement
by the FCA of their next steps, and any action by other regulators or
government bodies. The ultimate financial impact will be determined by a
number of factors still to be resolved, in particular the FCA response and any
potential redress as well as any broader implications of the judgment, and
accordingly could materially differ from the amount provided.
HBOS Reading - review
The Group continues to apply the recommendations from Sir Ross Cranston's
review, issued in December 2019, including a reassessment of direct and
consequential losses by an independent panel (the Foskett Panel), an extension
of debt relief and a wider definition of de facto directors. The Foskett
Panel's full scope and methodology was published on 7 July 2020. The Foskett
Panel's stated objective is to consider cases via a non-legalistic and fair
process and to make its decisions in a generous, fair and common sense manner,
assessing claims against an expanded definition of the fraud and on a lower
evidential basis.
In June 2022, the Foskett Panel announced an alternative option, in the form
of a fixed sum award which could be accepted as an alternative to
participation in the full re-review process, to support earlier resolution of
claims for those deemed by the Foskett Panel to be victims of the fraud.
Virtually all of the population have now had decisions via the Fixed Sum Award
process, with operational costs, redress and tax costs associated with the
re-reviews recognised within the amount provided.
Notwithstanding the settled claims and the increase in outcomes which builds
confidence in the full estimated cost, uncertainties remain and the final
outcome could be different. There is no confirmed timeline for the completion
of the re-review process nor the review by Dame Linda Dobbs. The Group remains
committed to implementing the recommendations in full.
Payment protection insurance (PPI)
The Group continues to challenge PPI litigation cases, with mainly operational
costs and legal fees associated with litigation activity recognised within
regulatory and legal provisions.
Other
The Group carries provisions of £123 million (31 December 2024: £153
million) in respect of dilapidations, rent reviews and other property-related
matters.
Provisions are also made for staff and other costs related to Group
restructuring initiatives at the point at which the Group becomes committed to
the expenditure; at 30 June 2025 provisions of £210 million (31 December
2024: £130 million) were held.
The Group carries provisions of £37 million (31 December 2024: £35 million)
for indemnities and other matters relating to legacy business disposals in
prior years. Whilst there remains significant uncertainty as to the timing of
the utilisation of the provisions, the Group expects the majority of the
remaining provisions to have been utilised by 31 December 2026.
Note 13: Dividends on ordinary shares
The Bank paid dividends of £640 million on 15 May 2025 (£2,140 million was
paid during the half-year to 30 June 2024).
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 14: Related party transactions
Balances and transactions with fellow Lloyds Banking Group undertakings
The Bank and its subsidiaries have balances due to and from the Bank's parent
company, Lloyds Banking Group plc, and fellow Group undertakings. These are
included on the balance sheet as follows:
At 30 Jun At 31 Dec
2025 2024
£m £m
Assets, included within:
Derivative financial instruments 912 807
Financial assets at amortised cost: due from fellow Lloyds Banking Group 897 560
undertakings
Liabilities, included within:
Due to fellow Lloyds Banking Group undertakings 3,804 4,049
Derivative financial instruments 890 687
Debt securities in issue at amortised cost 16,301 19,198
Subordinated liabilities 8,417 7,336
During the half-year to 30 June 2025 the Group earned £9 million (half-year
to 30 June 2024: £7 million) of interest income and incurred £643 million
(half-year to 30 June 2024: £684 million) of interest expense and recognised
net fee and commission expense of £47 million (half year to 30 June 2024: net
fee and commission expense of £367 million) on balances and transactions with
Lloyds Banking Group plc and fellow Group undertakings.
Other related party transactions
Other related party transactions for the half-year to 30 June 2025 are similar
in nature to those for the year ended 31 December 2024.
Note 15: Contingent liabilities, commitments and guarantees
Contingent liabilities, commitments and guarantees arising from the banking
business
At 30 June 2025 contingent liabilities, such as performance bonds and letters
of credit, arising from the banking business were £2,668 million (31
December 2024: £2,523 million).
The contingent liabilities of the Group arise in the normal course of its
banking business and it is not practicable to quantify their future financial
effect. Total commitments and guarantees were £133,844 million (31 December
2024: £128,947 million), of which in respect of undrawn formal standby
facilities, credit lines and other commitments to lend, £64,203 million (31
December 2024: £59,143 million) was irrevocable.
Capital commitments
Capital expenditure contracted but not provided for at 30 June 2025 amounted
to £733 million (31 December 2024: £640 million) and related to assets to be
leased to customers under operating leases. The Group's management is
confident that future net revenues and funding will be sufficient to cover
these commitments.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 15: Contingent liabilities, commitments and guarantees (continued)
Interchange fees
With respect to multi-lateral interchange fees (MIFs), the Lloyds Banking
Group is not a party in the ongoing or threatened litigation which involves
the card schemes Visa and Mastercard or any settlements of such litigation.
However, the Group is a member/licensee of Visa and Mastercard and other card
schemes. The litigation in question is as follows:
• Litigation brought by or on behalf of retailers against both Visa and
Mastercard in the English Courts, in which retailers are seeking damages on
grounds that Visa and Mastercard's MIFs breached competition law (this
includes a final judgment of the Supreme Court in 2020 upholding the Court of
Appeal's finding in 2018 that certain historic interchange arrangements of
Mastercard and Visa infringed competition law and a subsequent judgment of the
Competition Appeal Tribunal in June 2025 finding that all default interchange
fee rules of Mastercard and Visa (including after the Interchange Fee
Regulation), infringed competition law)
• Litigation brought on behalf of UK consumers in the English Courts
against Mastercard (settlement of which was approved by the Competition Appeal
Tribunal in the first half of 2025)
Any impact on the Group of the litigation against Visa and Mastercard remains
uncertain at this time, such that it is not practicable for the Group to
provide an estimate of any potential financial effect. Insofar as Visa is
required to pay damages to retailers for interchange fees set prior to June
2016, contractual arrangements to allocate liability have been agreed between
various UK banks (including the Lloyds Banking Group) and Visa Inc, as part of
Visa Inc's acquisition of Visa Europe in 2016. These arrangements cap the
maximum amount of liability to which the Lloyds Banking Group may be subject
and this cap is set at the cash consideration received by the Lloyds Banking
Group for the sale of its stake in Visa Europe to Visa Inc in 2016. In 2016,
the Lloyds Banking Group received Visa preference shares as part of the
consideration for the sale of its shares in Visa Europe. A release assessment
is carried out by Visa on certain anniversaries of the sale (in line with the
Visa Europe sale documentation) and as a result, some Visa preference shares
may be converted into Visa Inc Class A common stock from time to time. Any
such release and any subsequent sale of Visa common stock does not impact the
contingent liability.
LIBOR and other trading rates
Certain Lloyds Banking Group companies, together with other panel banks, have
been named as defendants in ongoing private lawsuits, including purported
class action suits, in the US in connection with their roles as panel banks
contributing to the setting of US dollar, Japanese yen and Sterling London
Interbank Offered Rate.
Certain Lloyds Banking Group companies are also named as defendants in (i)
UK-based claims, and (ii) two Dutch class actions, raising LIBOR manipulation
allegations. A number of claims against the Lloyds Banking Group in the UK
relating to the alleged mis-sale of interest rate hedging products also
include allegations of LIBOR manipulation.
It is currently not possible to predict the scope and ultimate outcome on the
Lloyds Banking Group of any private lawsuits or ongoing related challenges to
the interpretation or validity of any of the Lloyds Banking Group's
contractual arrangements, including their timing and scale. As such, it is not
practicable to provide an estimate of any potential financial effect.
NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED)
(continued)
Note 15: Contingent liabilities, commitments and guarantees (continued)
Tax authorities
The Group has an open matter in relation to a claim for group relief of losses
incurred in its former Irish banking subsidiary, which ceased trading on 31
December 2010. In 2020, HMRC concluded its enquiry into the matter and issued
a closure notice denying the group relief claim. The Group appealed to the
First Tier Tax Tribunal. The hearing took place in May 2023. In January 2025,
the First Tier Tribunal concluded in favour of HMRC. The Group believes it has
applied the rules correctly and that the claim for group relief is correct.
Having reviewed the Tribunal's conclusions and having taken appropriate advice
the Group has appealed to the Upper Tier Tax Tribunal, and does not consider
this to be a case where an additional tax liability will ultimately fall due.
If the final determination of the matter by the judicial process is that
HMRC's position is correct, management believes that this would result in an
increase in current tax liabilities of approximately £850 million (including
interest) and a reduction in the Group's deferred tax asset of approximately
£275 million. Following the First Tier Tax Tribunal outcome, the tax has
been paid to HMRC and recognised as a current tax asset, given the Group's
view that the tax liability will not ultimately fall due. It is unlikely that
any appeal hearing will be held before 2026, and final conclusion of the
judicial process may not be for several years.
There are a number of other open matters on which the Group is in discussions
with HMRC (including the tax treatment of costs relating to HBOS Reading),
none of which is expected to have a material impact on the financial position
of the Group.
Arena and Sentinel litigation claims
The Group is facing claims alleging breach of duty and/or mandate in the
context of an underlying external fraud matter involving Arena Television. The
Group is defending the claims, which are at an early stage. As such, it is not
practicable to estimate the final outcome of the matter and its financial
impact (if any) to the Group.
Other legal actions and regulatory matters
In addition, in the course of its business the Group is subject to other
complaints and threatened or actual legal proceedings (including class or
group action claims) brought by or on behalf of current or former employees,
customers (including their appointed representatives), investors or other
third parties, as well as legal and regulatory reviews, enquiries and
examinations, requests for information, audits, challenges, investigations and
enforcement actions, which could relate to a number of issues. This includes
matters in relation to compliance with applicable laws and regulations, such
as those relating to prudential regulation, employment, consumer protection,
investment advice, business conduct, systems and controls, environmental,
sustainability, competition/anti-trust, tax, anti-bribery, anti-money
laundering and sanctions, some of which may be beyond the Group's control,
both in the UK and overseas. Where material, such matters are periodically
reassessed, with the assistance of external professional advisers where
appropriate, to determine the likelihood of the Group incurring a liability.
The Group does not currently expect the final outcome of any such case to have
a material adverse effect on its financial position, operations or cash flows.
Where there is a contingent liability related to an existing provision the
relevant disclosures are included within note 12.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors listed below (being all the directors of Lloyds Bank plc)
confirm that to the best of their knowledge these condensed consolidated
half-year financial statements have been prepared in accordance with UK
adopted International Accounting Standard 34, Interim Financial Reporting, and
that the half-year management report herein includes a fair review of the
information required by DTR 4.2.7R and DTR 4.2.8R, namely:
• an indication of important events that have occurred during the six
months ended 30 June 2025 and their impact on the condensed consolidated
half-year financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
• material related party transactions in the six months ended 30 June 2025
and any material changes in the related party transactions described in the
last annual report.
Signed on behalf of the Board by
Charlie Nunn
Group Chief Executive
23 July 2025
Lloyds Bank plc Board of Directors:
Executive directors:
Charlie Nunn (Group Chief Executive)
William Chalmers (Chief Financial Officer)
Non-executive directors:
Sir Robin Budenberg CBE (Chair)
Sarah Bentley
Brendan Gilligan
Nigel Hinshelwood
Sarah Legg
Amanda Mackenzie LVO OBE
Harmeen Mehta
Cathy Turner
Scott Wheway
Catherine Woods
Nathan Bostock
Chris Vogelzang
INDEPENDENT REVIEW REPORT TO LLOYDS BANK PLC
Conclusion
We have been engaged by Lloyds Bank plc and its subsidiaries (the Group) to
review the condensed consolidated set of financial statements in the
half-yearly financial report for the six months ended 30 June 2025 which
comprises the condensed consolidated income statement, the condensed
consolidated statement of comprehensive income, the condensed consolidated
balance sheet, the condensed consolidated statement of changes in equity, the
condensed consolidated cash flow statement and related notes 1 to 15. Based on
our review, nothing has come to our attention that causes us to believe that
the condensed consolidated set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with the Disclosure Guidance and Transparency
Rules of the United Kingdom's Financial Conduct Authority and United Kingdom
adopted International Accounting Standard (IAS) 34.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion. As disclosed in note 1, the annual
financial statements of the Group will be prepared in accordance with United
Kingdom adopted international accounting standards. The condensed consolidated
set of financial statements included in this half-yearly financial report have
been prepared in accordance with United Kingdom adopted IAS 34, "Interim
Financial Reporting".
Conclusion relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410, however future events
or conditions may cause the Group to cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority. In preparing the half-yearly
financial report, the directors are responsible for assessing the Group's
ability to continue as a going concern, disclosing as applicable, matters
related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the Group a conclusion on the condensed consolidated set of
financial statements in the half-yearly financial report. Our conclusion,
including our conclusions relating to going concern, are based on procedures
that are less extensive than audit procedures, as described in the basis for
conclusion paragraph of this report.
Use of our report
This report is made solely to the Group in accordance with ISRE (UK) 2410. Our
work has been undertaken so that we might state to the Group those matters we
are required to state to it in an independent review report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Group, for our review work, for this
report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, England
23 July 2025
CONTACTS
For further information please contact:
INVESTORS AND ANALYSTS
Douglas Radcliffe
Group Investor Relations Director
020 7356 1571
douglas.radcliffe@lloydsbanking.com
Rohith Chandra-Rajan
Director of Investor Relations
07353 885 690
rohith.chandra-rajan@lloydsbanking.com
Nora Thoden
Director of Investor Relations - ESG
020 7356 2334
nora.thoden@lloydsbanking.com
Tom Grantham
Investor Relations Senior Manager
07851 440 091
thomas.grantham@lloydsbanking.com
Sarah Robson
Investor Relations Senior Manager
07494 513 983
sarah.robson2@lloydsbanking.com
CORPORATE AFFAIRS
Matt Smith
Head of Media Relations
07788 352 487
matt.smith@lloydsbanking.com
Emma Fairhurst
Media Relations Senior Manager
07814 395 855
emma.fairhurst@lloydsbanking.com
Copies of this News Release may be obtained from:
Investor Relations, Lloyds Banking Group plc, 33 Old Broad Street, London,
EC2N 1HZ
The statement can also be found on the Group's website -
www.lloydsbankinggroup.com
Registered office: Lloyds Bank plc, 25 Gresham Street, London, EC2V 7HN
Registered in England No. 2065
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