Investors

Lloyds Banking Group again demonstrated sustained strength in financial performance during the first six months of the 2026. Continued income momentum, disciplined cost management and strong and stable credit performance have supported strong returns and capital generation in the period.

Statutory profit after tax was £3.1 billion with a cost:income ratio of 50.4% and an asset quality ratio of 25 basis points. Together this performance delivered a return on tangible equity of 17.1% and 108 basis points of capital generation resulting in a proforma CET1 ratio of 13.1% post shareholder distributions.

The Board has recommended an increased interim ordinary dividend of 1.58 pence per share, equivalent to £918 million, representing an increase of 30% compared to the first half of 2025. This significant step-up reflects our derisked business, a strong capital position and confidence in our future earnings trajectory. We remain committed to our progressive and sustainable dividend policy. 

The Group is now also reviewing excess capital distributions in addition to the ordinary dividend every half year. The Board has announced its intention to implement a further ordinary share buyback programme of £1 billion.

Dividends and share buybacks

Over 2022 to 2026 we transformed the Group by building on our leading scale, breadth and connectivity. We restored leadership in key markets, while unlocking the potential of digital and AI, and driving cost and capital efficiency. 

We’re on course to generate c.£5 billion net income growth over the plan period, equating to a mid-single-digit CAGR (compound annual growth rate) and including c.£2 billion of strategic initiative revenues. We have also realised more than £2 billion of gross cost savings, having surpassed our original targets. This has helped support £17 billion of shareholder distributions since 2021, while increasing the ordinary dividend per share by more than 130% since the first half of 2021. 

Based on the sustained strength in our financial performance and our current macroeconomic assumptions, for 2026 the Group reiterates its guidance:

• Underlying net interest income of greater than £14.9 billion.
• Cost:income ratio of less than 50% (including operating costs of less than £9.9 billion).
• Asset quality ratio of c.25 basis points.
• Return on tangible equity of greater than 16%.
• Capital generation of greater than 200 basis points.
• To pay down to a CET1 ratio of c.13.0%.

Our strategy

Accelerate 2030 is the new ambitious strategy for Lloyds Banking Group. It builds on the Group’s core foundations, distinctive competitive strengths and the significant progress over the last five years. 

The strategy aligns with our purpose of Helping Britain Prosper and our customer promise of ‘making finance simpler, smarter and more connected for every moment that matters’.

The ambitious strategy accelerates our transformation through reimagined customer experiences, increased Group connectivity, and a productivity step change, enabled by pioneering technology.

Accelerate 2030 has three strategic pillars of ‘Grow the core’, ‘Innovate to deepen and diversify’ and ‘Simplify to outperform’.

The strategy will deliver long-term sustainable value creation through continued income growth, improving operating leverage, stronger and more sustainable returns, and growing capital generation.

Based on our current macroeconomic assumptions, from 2027 to 2030 the Group expects:

• Mid-single-digit net income compound annual growth rate and high-single-digit underlying other operating income compound annual growth rate.
• Cost:income ratio of less than 45% in 2030, with year-on-year reductions.
• Asset quality ratio of between 25 basis points and 30 basis points through the plan period.
• Return on tangible equity of c.20% in 2030 and greater than 18% in 2028.
• Capital generation of greater than 225 basis points in 2030.
• Pro forma CET1 ratio of c.13.0%.

Accelerate 2030