Bank on Lloyds: shaping the future of finance

Our strategy in action

Since launching our strategy in 2022, we have delivered the largest digital transformation in UK financial services – going beyond financial resilience to achieve true customer empowerment. Now in the strategy’s final phase, our momentum is accelerating. We are growing in important areas of market-share, diversifying our revenue streams, and improving our cost and capital efficiency. 

This, in turn, has enabled us to make powerful investments into our skills, digital capabilities and value-added customer propositions. We are building on our heritage and trusted relationships to enable exceptional breadth and depth of customer touch-points. We want to be wherever our customers are. Today, no other UK financial services provider offers greater choice, convenience and reach to empower customers. 

In 2025, Lloyds Banking Group increased its underlying lending by over £22 billion, to over £481 billion. Last year also saw almost £14 billion growth in customer deposits, to nearly £500 billion. We have realised £1.4 billion of additional revenues from strategic initiatives to date and are upgrading our 2026 target to circa £2 billion. 

Since the start of our strategy, we have grown our net income by around 20%, and other income has grown by over 30% – enabling us to invest further in our people, data and technology, and to deliver on our ambition to achieve higher, more sustainable returns for shareholders. Over the past three years our capital distributions have exceeded 11 billion.

During the course of this strategy, we have honed the specialisms, speed and agility to deliver a strong performance in a fast-moving world. I’m confident we’re setting the pace for financial services and the customers we serve.  

Transforming financial services with fintech innovation

At Lloyds, we have a long tradition of innovation – from introducing Europe’s first banknote in the 1690s, to installing the first computers of any UK bank in the 1950s. In recent decades, mobile banking has revolutionised customer experiences, with more power in personal smartphones than the technology which put man on the moon.

Agentic AI, digital assets and tokenised deposits are the next frontier for financial services, along with every industry and sector. Agentic is more connected, intuitive and hyper-personal than any technology that came before it. At Lloyds, we are at the forefront of its design and deployment, combining the deep expertise of our people, with AI-powered tools and digital capabilities. 

We’re also working with UK Finance, major UK banks and a building society to deliver Great British Tokenised Deposits (GBTD) – a new, tokenised commercial bank payments system which will securely digitise bank deposits. GBTD has immense potential to protect people from fraud, enhance the remortgaging process, and enable instant settlement. This month, Lloyds was proud to complete the UK’s first public blockchain transaction of digital assets, using Tokenised Deposits. 

How is Lloyds Banking Group investing in AI?

Lloyds is the UK’s largest fintech – stated by Microsoft to be leading AI adoption in financial services, ranked 15th in the Evident AI Index (having risen 12 places), and recognised by Euromoney as one of the best digital banks in the world. We have over 23 million digitally-active customers, logging-on 7 billion times every year – a 50% increase in log-ons, in just 3 years. Our digital transformation has modernised our complex technology estate, welcomed 9,000 data specialists, and established our industry-leading Data and AI Ethics Centre. 

We have over 800 AI models to support customers’ insight, prevent fraud, and improve operations, and we delivered 50 GenAI use cases in 2025 alone. The strength of our platform capabilities has secured a landmark contract for Government banking services – handling 400 million transactions a year and connecting us to almost every household in the UK.

Using tech to enhance customer outcomes

We are bringing more of the Group to every customer, through seamless, connected experiences. And we are providing people the information they need, at the time that’s right for them. Your Credit Score is one of the biggest single contributions to UK financial resilience, with 12 million people using this tool. While Lloyds Premier, Ready Made Investments and Ready Made Pensions, are supporting those who want to do more with their money, at different ages and stages of life.

Ready Made Investments are in demand from younger customers, with 40% under the age of 35. And 40% of accounts for Ready Made Pensions have been opened by those who are self-employed. In both cases, these tools are benefiting customers who have, historically, been underserved. As the UK’s second largest pensions provider, trusted to look after £129 billion on behalf of our workplace pension customers, we’re proud to be increasing access and reach. And having acquired Schroders Personal Wealth, we are also building out Lloyds Wealth, the UK’s most distinctive wealth and advice platform, for today and tomorrow.

We are redefining financial services, to increase financial empowerment. And whether online or in person, we are supporting people in the way they choose to bank. No other financial services provider has a more tangible, personal presence in UK communities – with one of the largest branch networks, 30,000 pay point locations, 200 banking hubs, and access to 11,000 post offices. 

And from 2025, customers across our brands were able to access their accounts, products and services at any of our Lloyds, Halifax and Bank of Scotland branches. Together with our apps – our digital front door – we’re empowering customers 24 hours a day, 7 days a week. And this year, we’re rolling-out the UK’s first agentic, in-app, AI financial assistant. Giving customers unprecedented, personalised guidance, insight and control, over their own present and future.

Investing in the UK’s infrastructure

At Lloyds, we are enabling the critical digital, financial and physical infrastructure which is helping Britain prosper. Since 2011, we’ve doubled our provision of infrastructure finance – delivering major energy projects, new technologies, healthcare and housing, in partnership across the public and private sectors. And we are increasing access to finance for businesses of every size and scale. 

This year, we are committing £35 billion of new finance for businesses across every region of the UK, with a third directed to small and medium-sized enterprises (SMEs). We are also connecting SMEs to cutting-edge technologies, through our sponsorship of the Manufacturing Technology Centre. Last year, we sponsored our 5000th apprentice – investing in the future of UK engineering and advanced manufacturing. 

And through our £1 billion Regional Impact Fund, we have continued to support the UK’s Community Development Finance Institutions (CDFIs) – backing hundreds of local businesses and social enterprises. From Blackpool to Bristol, we’re helping CDFIs to break down barriers to finance, and galvanise community and regional growth. 

Supporting the UK's housing needs

But we cannot build-up Britain without a solid foundation on which to build. We need good homes in the right places, to support strong communities and a skilled workforce. Lloyds’ pioneering MADE partnership with Homes England and Barratt Redrow has created a master developer which will deliver tens of thousands of new homes across the UK, with major projects in the North West such as Handforth Garden Village in Cheshire. And as the UK’s largest mortgage lender, we have supported over 1 million first time buyers since 2011 – lending £17 billion, last year alone. 

We also made available an additional £5 billion through our ‘First Time Buyer Boost’, to increase access and support for more customers. Meanwhile, as the biggest commercial supporter of social housing, Lloyds has enabled over £22 billion of financing since 2018, which includes over £3 billion in 2025. We have also delivered around two thirds of our £500 million commitment to help housing associations improve the energy-efficiency of tens of thousands of homes, under the retrofit scheme backed by the National Wealth Fund. 

Across the board, we are increasing the provision of good quality, genuinely affordable homes. Last year, Lloyds partnered the Homewards initiative; committing £50 million for small, specialist housing providers to deliver wraparound support in the six Homewards locations and Liverpool. The first recipient, Bournemouth Churches Housing Association, has accessed £10 million in order to expand its services for care leavers and those at risk of homelessness. 

We are proud to partner the national homelessness charity Crisis and, having called jointly in 2023 for ‘one million more homes at social rent’, launched the Social Housing Initiative (SHI) across the housing sector, finance and government to help achieve this. The SHI has pioneered the ‘Small Sites Aggregator’ to create homes in the heart of communities, with government-backed pilots now underway in Bristol, Sheffield and Lewisham.

Driving sustainable change

In every region of the UK, we are stimulating inclusive, sustainable growth. Since 2022, we have provided £71 billion in sustainable finance, including £22 billion in 2025. We are enabling essential clean energy, water resilience and food security projects – from our role as one of the largest lenders for Sizewell C, to issuing the UK’s first blue bond with £250 million for the Thames Tideway Tunnel, to helping farmers switch to more sustainable practices. 

As the biggest lender to UK agriculture, we know that farmers are navigating greater climate, supply and cost pressures than ever before. Our new Agriculture Transition Finance product is creating valuable headroom, for those on the frontline of land management and secure food production.