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 find out more about our business model.
 

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

Accelerate 2030 logo

Our new strategy, Accelerate 2030, builds on the foundations created over 2022 to 2026. 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, all enabled by pioneering technology. 

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.
 

Dividend per share (pence) bar chart shows interim, final and total dividends each year from 2022 to half year 2026. For half year 2026 it shows the interim ordinary dividend is 1.58 pence per share, up 30% on the prior year. Total distributions (£ billion) bar chart shows interim and final dividend, interim and final buyback and total distributions each year from 2022 to half year 2026. For half year 2026 it shows an interim dividend distribution of £0.9 billion, an interim buyback of £1 billion, and a total distribution of £1.9 billion.

2026 half year financial results

"In the first half of 2026, we delivered sustained strength in financial performance, with continued income growth, improving operating leverage, strong credit performance, growing capital generation and increasing shareholder returns."  

 Charlie Nunn, Group Chief Executive

£9.7bn

Net income

(+9% YoY)

£4.9bn

Operating costs

(flat YoY)

£3.1bn

Statutory profit after tax

(+23% YoY)

2% / 1%

Loan / deposit growth YTD

(loans up £10.4bn, deposits up £4.4bn)

17.1%

Return on tangible equity

(+3pp YoY)

£1.9bn

Total capital return

(incl +30% dps growth and £1bn buyback)

Financial downloads

Confidence in delivering higher, more sustainable returns

2026 guidance

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 points1.
  • To pay down to a CET1 ratio of c.13.0%.

 

1. Excludes capital distributions.
2. Includes capital distributions announced in respect of the reporting period.

2027 to 2030 guidance

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 20301.
  • Pro forma CET1 ratio of c.13.0%2.

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 of Scotland, Scottish Widows, Lloyds 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

2025 annual report

Our annual report provides disclosures relating to our strategic, financial, operational, environmental and social performance – along with detail on our strategy.

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.

Useful links


Our financial performance

Annual report highlights

Shareholder factbook

Our purpose and strategy