Lloyds Banking Group plc Earnings Recaps
Q2 2026
Aug 4, 2026
The 3.0% post-earnings rally reflects investor approval of solid financial results and maintained guidance, with growth in net income and disciplined costs supporting confidence. Market reaction suggests the half-year performance aligned with expectations without major surprises.
Key takeaways
- Statutory profit after tax reached GBP 3.1 billion with a return on tangible equity of 17.1%, consistent with the target of above 16%.
- Net income increased 9% year-on-year to GBP 9.7 billion, with Q2 net income 4% higher than Q1, driven by both net interest income and other income.
- Operating costs remained flat year-on-year at GBP 4.9 billion, enabling a Q2 cost-income ratio of 49%, meeting guidance for sub-50% full-year.
- Credit quality remains robust with an impairment charge of GBP 617 million, translating to an asset quality ratio of 25 basis points.
- The group announced a 30% increase in the interim dividend and a GBP 1 billion share buyback, reflecting ongoing shareholder returns aligned with strong capital generation.
Q3 2025
Oct 23, 2025
Lloyds Banking Group reported a robust Q3 performance, with strong income momentum and strategic advancements, despite an £800 million charge related to motor commissions that prompted a revision of 2025 guidance.
Key takeaways
- Year-to-date statutory profit after tax reached £3.3 billion, with a return on tangible equity of 11.9% (14.6% excluding motor charges).
- Net income rose 6% year-on-year to £13.6 billion, driven by growth in net interest income and other operating income.
- Group lending balances increased by £18 billion (4% year-to-date), with significant growth in retail lending, particularly in the mortgage sector.
- Completed acquisition of Schroders Personal Wealth enhances wealth management capabilities, with £17 billion assets under administration now managed internally.
- Capital generation strong at 110 basis points year-to-date, resulting in a CET1 ratio of 13.8%.