Sustainability report 2025

The Group is committed to a purpose-driven strategy that supports the needs of our customers, colleagues and communities, while delivering long-term sustainable returns and creating value for shareholders.

Our 2025 report showcases how we are Helping Britain Prosper by growing our business profitably and creating a more sustainable and inclusive future for people and businesses. I am pleased to update on the considerable progress made over the last year and to highlight the strength of our top priorities.

Access to quality and affordable housing

We are proud to play a leading role in the UK’s housing market, working with communities, developers and local partners to accelerate the delivery of quality, affordable homes for people who need them most.

In 2025, we provided £7 billion to first-time buyers, supporting business growth and helping 70,000 customers onto the property ladder. Last year, we strengthened our mortgage offering with the launch of First Time Buyer Boost, making an additional £5 billion available to customers who may previously have missed out on securing a mortgage. By making home ownership possible for thousands more people, Boost is helping our customers realise their dream of home ownership, while driving income growth in a competitive market.

The Group has a long-standing commitment to support the social housing sector and our financing is helping more people access secure, affordable homes, while strengthening housing growth. A brilliant example is our £100 million financing agreement with the Sovereign Network Group, which will fund the retrofitting of 4,500 social homes. This makes these homes even more energy efficient, aiming to make these more cost-effective, comfortable and quality places to live.

Beyond championing the social housing sector, we are also focused on decarbonising the UK’s housing market and making it easier to access energy efficient homes for customers. Through Lloyds Banking Group, we operate the largest portfolio of over 5,450 privately rented homes and we are proud to make the UK’s largest market-leading role in the UK’s housing sector. We are successfully growing our business, while helping more people move into quality homes and build their futures.

Empowering a prosperous future

As the UK’s only integrated financial services provider we are deeply committed to empowering our customers to achieve their financial ambitions. Our products and services support people through some of their biggest milestones, be it saving for a home, starting to invest or planning for retirement.

Since launching Ready-Made Pensions in 2024, we’ve opened over 7,000 accounts, helping customers access simple, flexible ways to build their retirement savings. Our Ready-Made Investments are empowering people to take control of their finances, with c.84,000 customers starting to invest since launch. With a market-leading fund charge, more of our customers’ money is invested directly into their futures, with over £500 million invested to date. Both offerings mean we’re supporting a growing customer base, which continued to increase in other operating income through management fees.

We are using our extensive data and digital capabilities to strengthen customers’ credit health and improve access to borrowing. Over 500,000 customers improved their credit score every quarter last year, building resilience and confidence. Our Benefits Calculator highlighted £93.3 million of support payable to customers, and we paid £9.1 billion in interest payments in 2025, supporting everyday resilience and deepening customer and client relationships.

Supporting regional development and communities

We are committed to supporting growth and creating opportunities in regions and communities across the UK.

In the North West, we acted as mandate lead arranger for a £154 million debt commitment to a critical carbon capture infrastructure project that creates 2,000 jobs, demonstrating how our finance delivers commercial growth and regional development, while reducing emissions.

Last year, we supported the Community Development Finance sector as it continues to scale. Our initial £43 million investment in 2024, delivered through the £1 billion Regional Impact Fund, has since supported over 370 regional businesses and helped unlock new capital in local economies.

Our Lloyds Bank Foundations are another useful community asset and we marked their 40th anniversary in 2025. Since the Foundations were established in 1985, we have donated over £800 million and countless hours of our colleagues’ time in support of small and local charities across the UK. Beyond our Foundations, our colleagues also spent more than 11,000 hours volunteering for national homelessness charity Crisis, raising almost £5 million since the start of our partnership in 2023.

Our deep-rooted presence in UK communities reflects the enduring impact of our charitable initiatives and the strength of our commercial success, working together to create lasting value for customers and communities.

Building an inclusive organisation

We are clear that our workforce needs to reflect the customers and communities we serve. Over the past year, we have continued to advance our 2030 inclusion ambitions, strengthening our focus on increasing representation in executive roles. We remain committed to removing barriers and providing opportunities for people to reach their potential regardless of their socio-economic backgrounds. In 2025, our youth outreach programmes supported over 100,000 people across school, college and university, building essential skills and strengthening the Group’s talent pipeline.

Ensuring that we build an inclusive workforce means we can attract – and retain – the exceptional talent we need to deliver on our strategy and build a business that meets evolving customer needs.

Supporting the UK’s transition

We continue to strengthen the resilience of our balance sheet and investment portfolios by deploying capital to support the UK’s transition. Since 2022, we have provided £70.9 billion of sustainable finance and we have now invested £81.3 billion in climate-aware strategies since 2020.

We are structuring new forms of finance that link institutional capital to critical national infrastructure. One example is our support for the first corporate issuance of a blue bond in sterling, co-ordinating £250 million for London’s Thames Tideway Tunnel. Once complete, the tunnel will reduce pollution and support the capital’s long-term water resilience. It showcases how innovation in sustainable finance can drive positive societal impact and robust financial outcomes.

Alongside this leadership in nature-based finance, we continue to play a critical role in strengthening the UK’s energy security. Our support for major national projects, including Sizewell C, reflects our commitment to backing large-scale, clean power that will help secure reliable, affordable energy for the UK. These examples underline how we are supporting the long-term resilience of critical infrastructure, while unlocking significant commercial growth opportunities aligned to the UK’s transition.

Continuing to deliver in 2026

We continue 2026 from a position of strength with a clear focus on our purposeful growth. By combining positive impact with sustainable, long-term returns, we will continue to deliver on our purpose of Helping Britain Prosper.