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Why invest in Lloyds Banking Group?

Higher, more sustainable returns as we continue Helping Britain Prosper.

Lloyds Banking Group is the UK's largest digital bank.

Strategy

Continuing to deliver against our strategic objectives, transforming the business to create higher and more sustainable value.

Performance

Demonstrating sustained strength in financial performance, in line with expectations. Our performance provides confidence in delivery of financial guidance.

Returns

Strong returns with progressive and sustainable ordinary dividend. Aiming to deliver higher, more sustainable returns and capital generation.

How we create value, and what sets us apart


We have a number of distinct competitive strengths that collectively differentiate our proposition.

Leading UK customer franchise with deep customer insight

c.28 million customers with unequalled reach across the UK. Extensive customer data and analysis ensures we can anticipate and meet the needs of these customers more effectively.

All-channel distribution with digital leadership and trusted brands

Operating through a range of brands and distribution channels, including the UK’s largest digital bank.

Unique customer proposition

Serving all our customers’ banking, investment and insurance needs through a comprehensive product range.

Innovation through modern and transformative technology

Continued investment in our technology platform, apps and change function enables us to innovate in order to anticipate and meet customers’ needs.

Operating at scale with cost discipline

Our scale and efficiency enable us to operate and invest more effectively.

Focused and capital generative business model

Allowing significant investment while generating attractive returns for shareholders.

Financial strength and robust risk management

Strong capital position. Robust approach to risk, as reflected in the quality of our portfolio and underwriting criteria.

Dedicated colleagues with strong values

Highly engaged, skilled, customer focused, diverse workforce with significant expertise and experience.

Read our annual report to read more about our business model.

Our 2025 annual report will be published on 18 February 2026.  
 

Annual report highlights

Purpose-driven strategy delivers for broader stakeholders


Building on our strong foundations and distinct competitive strengths, our purpose of Helping Britain Prosper forms the basis of our strategy to profitably deliver for all of our stakeholders.
 


Our purpose

Helping Britain Prosper

Our strategic vision

UK customer-focused digital leader and integrated financial services provider, capitalising on new opportunities, at scale.

Grow

Drive revenue growth and diversification.

Focus

Strengthen cost and capital efficiency.

Change

Maximise the potential of people, technology and data.


 Higher, more sustainable, returns and capital generation

More detail on our purpose and strategy

The Group has a progressive and sustainable ordinary dividend policy whilst maintaining the flexibility to return further surplus capital through buybacks or special dividends.
 

First graph shows the Board has recommended a final ordinary dividend of 2.43 pence per share, which, together with the interim ordinary dividend of 1.22 pence per share totals 3.65 pence per share, an increase of 15% compared to 2024, in line with the Board’s commitment to a progressive and sustainable ordinary dividend. Second graph shows based on the combined interim and proposed final ordinary dividends and the announced ordinary share buyback of £1.75 billion, the total capital return in respect of 2025 will be up to £3.9 billion.

2025 full year financial results

"The Group demonstrated sustained strength in financial performance in 2025, including in the final quarter, with continued balance sheet and income growth, as well as strong cost discipline and credit performance. This enables total shareholder distributions of c.£3.9 billion for the year."  

 Charlie Nunn, Group Chief Executive

£18.30bn

Net income

(+7% YoY)

£9.76bn

Operating costs

(+3% YoY)

£4.76bn

Statutory profit after tax

(+6% YoY)

5% / 3%

Loan / deposit growth

(£22.0bn lending growth / £13.8 bn deposit growth)

12.9%

Return on tangible equity

(14.8% excl Q3 motor charge)

£3.9bn

Total capital return

(3.65p total dividend per share and £1.75bn buyback)

Financial downloads

Confidence in delivering higher, more sustainable returns

2026 guidance

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

  • Underlying net interest income of c.£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 now of greater than 16%
  • Capital generation of greater than 200 basis points
  • To pay down to a CET1 ratio of c.13.0%

Shareholder factbook

Who we are

 

We're a leading UK-based financial services group with over 325 years' history and a unique family of household brands. Our purpose at Lloyds Banking Group is Helping Britain Prosper.

Brand logos for: Lloyds Bank, Halifax, Bank of Scotland, Scottish Widows, Schroders Personal Wealth, MBNA, Black Horse, Lex Autolease, Birmingham Midshires, Embark Group, HGP, AMC, LDC, Lloyds Living, Cavendish Online and Tusker.

Find out more about our brands

Related content

Annual report and accounts

Our annual report provides disclosures relating to our strategic, financial, operational, environmental and social performance. 

Annual report highlights

Sustainability

We have an important role to play in creating a more sustainable and inclusive future for people and businesses, by shaping finance as a force for good.

Sustainability

Useful links


Our financial performance

Annual report highlights

Shareholder factbook

Our purpose and strategy