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Why invest in Lloyds Banking Group?

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

Lloyds Banking Group is a leading UK-focused financial services provider.

Strategy

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

Performance

Delivering a robust 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

28 million customers with extensive reach across the UK. Customer data and analysis ensures we can meet the needs of these customers more effectively.

All-channel distribution focus 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.

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 an attractive capital return for shareholders.

Innovation through modern technology

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

Financial strength and robust risk management

Strong capital position. Continue to take a robust approach to risk, as reflected through 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.
 

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 an interim dividend of 1.22p for H1 2025, 15% higher year-on-year, in line with guidance for a progressive and sustainable dividend. H1 2025 interim dividend up more than 80% versus H1 2021. Second graph shows how our strong capital generation has enabled continued growth in shareholder distributions, from £0.5 billion in H1 2021 to £0.7 billion in H1 2025.

2025 Q3 results highlights


"Our strategic progress, combined with robust financial performance, gives us confidence in our performance for the year and our 2026 guidance."  

 
Charlie Nunn, Group Chief Executive

£13.6bn

Net income

(+6% YoY)

£7.2bn

Operating costs

(+3% YoY)

0.18%

Asset quality ratio

(FY2025 guidance of c.0.20%)

£3.3bn

Statutory profit after tax

(inc. motor charge of £800m)

4% / 3%

YTD loan / deposit growth

11.9%

Return on tangible equity

(inc. motor charge of £800m)

Financial downloads

Confidence in delivering higher, more sustainable returns

2025 guidance

  • Underlying net interest income of c.£13.6 billion
  • Operating costs of c.£9.7 billion excl. SPW
  • Asset quality ratio of c.20bps
  • Return on tangible equity of c.12%
  • Capital generation of c.145bps
  • Progressive and sustainable dividend

2026 guidance

  • Cost:income ratio of less than 50%
  • Return on tangible equity of greater than 15%
  • Capital generation of greater than 200bps
  • To pay down to a CET1 ratio of c.13.0%
  • Progressive and sustainable dividend

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, MBNA, Black Horse, Lex Autolease, Birmingham Midshires, Embark Group, AMC, LDC, IWeb, Citra, 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