Lloyds Banking Group(US:LYG)2025-07-24 12:54markdown [Form 6-K Details](index=1&type=section&id=Form%206-K%20Details) [Basis of Presentation](index=2&type=section&id=BASIS%20OF%20PRESENTATION) [Forward-Looking Statements](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) [Explanatory Note](index=3&type=section&id=EXPLANATORY%20NOTE) [Statutory Financial Information (IFRS)](index=4&type=section&id=STATUTORY%20INFORMATION%20(IFRS)) [Condensed Consolidated Income Statement (Unaudited)](index=4&type=section&id=Condensed%20consolidated%20income%20statement%20(unaudited)) Lloyds Banking Group plc reported a **5%** increase in statutory profit before tax for the first half of 2025, reaching **£3,504 million**, driven by higher total income despite an increased impairment charge. Profit after tax rose to **£2,544 million**, and basic earnings per share increased to **3.8 pence** - Total income for H1 2025 was **£9,386 million**, a **6% increase** from H1 2024, primarily due to a **7% rise** in net interest income to **£6,478 million**, benefiting from higher average interest-earning assets and a growing structural hedge contribution[18](index=18&type=chunk) - The impairment charge significantly increased to **£442 million** in H1 2025 from **£100 million** in H1 2024, mainly due to a higher charge in Commercial Banking from individual cases moving to default, partially offset by strong performance in Retail portfolios[22](index=22&type=chunk) | Metric | Half-year to 30 Jun 2025 (£ million) | Half-year to 30 Jun 2024 (£ million) | Change (%) | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Profit before tax | 3,504 | 3,324 | 5 | | Profit after tax | 2,544 | 2,444 | 4 | | Basic earnings per share | 3.8 pence | 3.4 pence | 11.8 | | Diluted earnings per share | 3.7 pence | 3.3 pence | 12.1 | | Dividends per share – ordinary | 1.22 pence | 1.06 pence | 15.1 | [Condensed Consolidated Balance Sheet (Unaudited)](index=5&type=section&id=Condensed%20consolidated%20balance%20sheet%20(unaudited)) The Group's total assets increased by **£12,585 million** to **£919,282 million** as of 30 June 2025, driven by growth in financial assets at amortised cost, particularly loans and advances to customers. Total liabilities also increased, primarily due to a rise in customer deposits - Financial assets at amortised cost increased by **£6,460 million** to **£538,237 million**, primarily due to growth in UK mortgages (**£5,611 million**) and other retail unsecured loans, credit cards, UK Motor Finance, and European retail business[25](index=25&type=chunk) - Customer deposits grew by **£11,187 million** to **£493,932 million**, with Retail deposits increasing by **£3,639 million** and Commercial Banking deposits by **£7,572 million**, partly due to strong ISA season performance and market uncertainty[28](index=28&type=chunk) | Metric | At 30 Jun 2025 (£ million) | At 31 Dec 2024 (£ million) | Change (£ million) | Change (%) | | :------------------------------------------ | :------------------------- | :------------------------- | :----------------- | :--------- | | Total assets | 919,282 | 906,697 | 12,585 | 1.4 | | Total liabilities | 872,411 | 860,809 | 11,602 | 1.3 | | Total equity | 46,871 | 45,888 | 983 | 2.1 | | Loans and advances to customers | 471.6 billion | 459.9 billion | 11.7 billion | 2.5 | | Customer deposits | 493.9 billion | 482.7 billion | 11.2 billion | 2.3 | | Loan to deposit ratio | 95% | 95% | 0% | 0 | | Risk-weighted assets | 231.4 billion | 224.6 billion | 6.8 billion | 3.0 | | Common equity tier 1 ratio | 13.8% | 14.2% | (0.4%) | (2.8) | | Tier 1 capital ratio | 16.1% | 16.6% | (0.5%) | (3.0) | | Total capital ratio | 19.0% | 19.0% | 0% | 0 | [Financial Review](index=6&type=section&id=Financial%20review) [Overall Performance](index=6&type=section&id=Overall%20Performance) The Group's statutory profit before tax for H1 2025 increased by **5%** to **£3,504 million**, driven by a **6%** rise in total income to **£9,386 million**. Net interest income grew by **7%** to **£6,478 million**, while other income increased by **3%**. Operating expenses remained stable, but the impairment charge significantly increased - Profit before tax for H1 2025 was **£3,504 million**, a **5% increase** from H1 2024, with profit after tax at **£2,544 million** and basic EPS at **3.8 pence**[17](index=17&type=chunk) - Operating expenses were broadly stable at **£5,440 million**, with inflationary pressures and strategic investments offset by cost savings and a lower remediation charge of **£37 million** (down from **£95 million** in H1 2024)[20](index=20&type=chunk)[21](index=21&type=chunk) - The impairment charge increased to **£442 million** in H1 2025 from **£100 million** in H1 2024, primarily due to a higher charge in Commercial Banking, despite strong performance in Retail[22](index=22&type=chunk) | Income Category | H1 2025 (£ million) | H1 2024 (£ million) | Change (%) | | :---------------- | :----------- | :----------- | :--------- | | Total income | 9,386 | 8,876 | 6 | | Net interest income | 6,478 | 6,046 | 7 | | Other income | 2,908 | 2,830 | 3 | [Balance Sheet Analysis](index=6&type=section&id=Balance%20sheet) The Group's total assets grew by **£12,585 million** to **£919,282 million**, mainly driven by increased financial assets at amortised cost, particularly in UK mortgages and retail unsecured loans. Total liabilities also rose, with significant growth in customer deposits across both Retail and Commercial Banking - Total assets increased by **£12,585 million** to **£919,282 million** at 30 June 2025[24](index=24&type=chunk) - Financial assets at amortised cost increased by **£6,460 million** to **£538,237 million**, supported by growth in UK mortgages (**£5,611 million**) and other UK Retail unsecured loans, credit cards, UK Motor Finance, and European retail business[25](index=25&type=chunk) - Customer deposits increased by **£11,187 million** to **£493,932 million**, with Retail deposits up **£3,639 million** and Commercial Banking deposits up **£7,572 million**[28](index=28&type=chunk) - Total equity increased by **£983 million** to **£46,871 million**, reflecting profit for the period and AT1 capital instrument issuance, partially offset by the share buyback program and dividend payments[30](index=30&type=chunk) [Capital](index=7&type=section&id=Capital) The Group's Common Equity Tier 1 (CET1) capital ratio decreased to **13.8%** at 30 June 2025 from **14.2%** at 31 December 2024, primarily due to the impact of the share buyback program, dividend accruals, and an increase in risk-weighted assets. The total capital ratio remained stable at **19.0%** - Risk-weighted assets increased by **£6,797 million** to **£231,429 million**, reflecting strong lending growth and a temporary increase related to hedging activity[34](index=34&type=chunk) - The UK leverage ratio decreased to **5.4%** due to an increase in the leverage exposure measure, driven by higher loans and advances, other assets, and off-balance sheet items[35](index=35&type=chunk) | Capital Metric | At 30 Jun 2025 | At 31 Dec 2024 | Change (basis points) | | :--------------- | :------------- | :------------- | :----------- | | CET1 ratio | 13.8% | 14.2% | (40) | | Tier 1 ratio | 16.1% | 16.6% | (50) | | Total capital ratio | 19.0% | 19.0% | 0 | | MREL ratio | 31.4% | 32.2% | (80) | | UK leverage ratio | 5.4% | 5.5% | (10) | [Dividend and Share Buyback](index=8&type=section&id=Dividend%20and%20share%20buyback) The Board recommended an interim ordinary dividend of **1.22 pence** per share for H1 2025, a **15% increase** year-on-year, in line with its progressive dividend policy. The Group also completed **£0.7 billion** of its **£1.7 billion** ordinary share buyback program by 30 June 2025 - Recommended interim ordinary dividend of **1.22 pence** per share, an increase of **15%** compared to H1 2024, totaling **£731 million**[36](index=36&type=chunk) - The **£1.7 billion** ordinary share buyback program, approved in February 2025, had completed **£0.7 billion** by 30 June 2025, with approximately **1.0 billion** ordinary shares purchased[37](index=37&type=chunk) [Underlying Basis Information](index=8&type=section&id=UNDERLYING%20BASIS%20INFORMATION) [Group Profit Reconciliation and Segmental Analysis of Profit Before Tax (Unaudited)](index=8&type=section&id=Group%20profit%20reconciliation%20and%20segmental%20analysis%20of%20profit%20before%20tax%20(unaudited)) The Group reconciles its statutory results to an underlying profit before tax basis by adjusting for restructuring costs and volatility and other items. This underlying basis is used by the Group Executive Committee to assess performance and allocate resources across its four segments: Retail, Commercial Banking, Insurance, Pensions and Investments, and Other - Underlying profit before tax for H1 2025 was **£3,561 million**, up from **£3,497 million** in H1 2024[42](index=42&type=chunk) - Total adjustments to statutory profit before tax for H1 2025 were a net loss of **£57 million**, including a **£27 million** gain from market and other volatility (compared to a **£65 million** loss in H1 2024) and a **£120 million** gain on the sale of the bulk annuities portfolio[42](index=42&type=chunk) | Segment | H1 2025 Underlying Profit (£ million) | H1 2024 Underlying Profit (£ million) | Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Retail | 1,974 | 1,875 | 5 | | Commercial Banking | 1,194 | 1,329 | (10) | | Insurance, Pensions and Investments | 144 | 119 | 21 | | Other | 249 | 174 | 43 | [Divisional Results](index=9&type=section&id=DIVISIONAL%20RESULTS) [Retail](index=9&type=section&id=Retail) Retail reported a **5%** increase in underlying profit before tax to **£1,974 million** for H1 2025, driven by a **6%** rise in underlying net interest income and a **13%** increase in other income. This growth was supported by strong digital engagement, new product launches, and increased lending across mortgages and unsecured loans - Loans and advances to customers increased by **£10.1 billion** to **£381.6 billion**, with UK mortgages growing by **£5.6 billion**. Customer deposits increased by **£3.7 billion** to **£323.4 billion**, driven by inflows to limited withdrawal and fixed term savings[48](index=48&type=chunk) - Strategic progress included launching Lloyds Premier for Mass Affluent customers, achieving **20.9 million** active mobile app users, and over **95%** of sales through digital channels. The fleet for EVs through Tusker exceeded **68,000 vehicles**, up **41% YoY**[48](index=48&type=chunk) | Metric | H1 2025 (£ million) | H1 2024 (£ million) | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Underlying net interest income | 4,709 | 4,430 | 6 | | Underlying other income | 1,276 | 1,133 | 13 | | Total underlying costs | (2,963) | (2,817) | (5) | | Underlying impairment charge | (342) | (194) | (76) | | Underlying profit before tax | 1,974 | 1,875 | 5 | [Commercial Banking](index=11&type=section&id=Commercial%20Banking) Commercial Banking's underlying profit before tax decreased by **10%** to **£1,194 million** in H1 2025, primarily due to a higher underlying impairment charge and lower other income. Net interest income saw a modest increase, and customer lending grew by **1%** to **£88.8 billion** - Customer lending increased by **1%** to **£88.8 billion**, driven by growth in Institutional balances and securitised products, while customer deposits rose **5%** to **£170.2 billion**[56](index=56&type=chunk) - Strategic progress included launching new mobile loans for Business Banking, enhancing self-service, and delivering **£16.1 billion** in sustainable financing towards its **£30 billion** target[53](index=53&type=chunk)[56](index=56&type=chunk) | Metric | H1 2025 (£ million) | H1 2024 (£ million) | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Underlying net interest income | 1,766 | 1,696 | 4 | | Underlying other income | 926 | 942 | (2) | | Total underlying costs | (1,394) | (1,390) | 0 | | Underlying impairment charge | (100) | 83 | (220.5) | | Underlying profit before tax | 1,194 | 1,329 | (10) | [Insurance, Pensions and Investments](index=13&type=section&id=Insurance,%20Pensions%20and%20Investments) Insurance, Pensions and Investments (IP&I) reported a **21%** increase in underlying profit before tax to **£144 million** for H1 2025, primarily driven by a **6%** rise in underlying other income from strong business performance, including higher general insurance income and strengthening Workplace income - Open book Assets under Administration (AuA) grew **3%** year-to-date to **£191 billion**, with net AuA flows of **£2.8 billion**, significantly contributed by workplace pensions[64](index=64&type=chunk) - Climate-aware investments increased by **£11.2 billion** in 2025, reaching **£37.1 billion**, exceeding the target of **£20-£25 billion** by end of 2025[64](index=64&type=chunk) | Metric | H1 2025 (£ million) | H1 2024 (£ million) | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Underlying other income | 689 | 649 | 6 | | Total underlying costs | (468) | (463) | (1) | | Underlying impairment credit | 1 | 7 | (86) | | Underlying profit before tax | 144 | 119 | 21 | [Other](index=14&type=section&id=Other) The 'Other' segment, which includes the Group's equity investments businesses, reported a **43%** increase in underlying profit before tax to **£249 million** for H1 2025. This was driven by a **14%** rise in net income, primarily from strong income growth in Lloyds Living and LDC, alongside a **31%** decrease in total costs due to one-off costs in the prior year - Underlying other income included **£264 million** generated by equity and direct investment businesses, with Lloyds Living up **£42 million** and LDC income at **£195 million** (up from **£159 million** in H1 2024)[67](index=67&type=chunk) - Total costs decreased by **31%** to **£86 million**, mainly due to the absence of one-off costs associated with the sale of the Group's in-force bulk annuity portfolio in H1 2024[68](index=68&type=chunk) | Metric | H1 2025 (£ million) | H1 2024 (£ million) | Change (%) | | :-------------------------- | :----------- | :----------- | :--------- | | Underlying income | 336 | 296 | 14 | | Total underlying costs | (86) | (125) | 31 | | Underlying profit before tax | 249 | 174 | 43 | [Risk Management](index=15&type=section&id=RISK%20MANAGEMENT) [Principal Risks and Uncertainties](index=15&type=section&id=Principal%20risks%20and%20uncertainties) The Group's asset quality remained robust in H1 2025, with stable credit performance despite ongoing macroeconomic and geopolitical uncertainties. The Group continues to monitor risks, including potential impacts from the FCA review into motor finance commission arrangements, for which a **£1.15 billion** provision has been established - Asset quality remained robust with stable credit performance, and the Group monitors economic impacts through early warning indicators[71](index=71&type=chunk) - No further charges were made to the **£1.15 billion** provision for motor finance commission arrangements, with the Supreme Court decision on the Wrench, Johnson and Hopcraft appeal pending[72](index=72&type=chunk) - The Group has **11 unchanged principal risks** in 2025, including capital, climate, compliance, conduct, credit, economic crime, insurance underwriting, liquidity, market, model, and operational risks[75](index=75&type=chunk) [Capital Risk](index=16&type=section&id=Capital%20risk) The Group's CET1 capital ratio decreased to **13.8%** at 30 June 2025 from **14.2%** at 31 December 2024, primarily due to the impact of the share buyback program and dividend accruals, alongside an increase in risk-weighted assets. The total capital ratio remained stable at **19.0%**, while the MREL ratio slightly reduced to **31.4%** - The Board's target CET1 capital ratio is approximately **13.0%**, including a **1%** management buffer, to cover regulatory requirements and economic uncertainties[77](index=77&type=chunk) - Risk-weighted assets increased by **£6.8 billion** to **£231.4 billion**, driven by strong lending growth and a temporary **c.£1.2 billion** increase related to hedging activity[96](index=96&type=chunk) - The UK leverage ratio reduced to **5.4%**, primarily due to increases in loans and advances, other assets, and off-balance sheet items[100](index=100&type=chunk) | Capital Metric | At 30 Jun 2025 | At 31 Dec 2024 | Change (basis points) | | :--------------- | :------------- | :------------- | :----------- | | CET1 ratio | 13.8% | 14.2% | (40) | | Tier 1 ratio | 16.1% | 16.6% | (50) | | Total capital ratio | 19.0% | 19.0% | 0 | | MREL ratio | 31.4% | 32.2% | (80) | | UK leverage ratio | 5.4% | 5.5% | (10) | [Overview](index=16&type=section&id=Overview) [Capital and MREL Resources](index=17&type=section&id=Capital%20and%20MREL%20resources) [Movements in CET1 Capital](index=18&type=section&id=Movements%20in%20CET1%20capital) [Movements in Total Capital and MREL](index=19&type=section&id=Movements%20in%20total%20capital%20and%20MREL) [Risk-Weighted Assets](index=19&type=section&id=Risk-weighted%20assets) [Leverage Ratio](index=20&type=section&id=Leverage%20ratio) [Credit Risk](index=21&type=section&id=Credit%20risk) The Group's credit portfolios demonstrated resilience in H1 2025, with asset quality remaining robust. The impairment charge increased to **£442 million**, largely due to a higher charge in Commercial Banking. Stage 2 and Stage 3 loans to customers remained stable as a percentage of total lending, reflecting resilient Retail performance and targeted Commercial Banking adjustments - Asset quality remained robust with stable credit performance in H1 2025, with improvements in UK mortgages and stable trends in unsecured portfolios[103](index=103&type=chunk) - The impairment charge was **£442 million** in H1 2025, up from **£100 million** in H1 2024, reflecting a small net release from macroeconomic outlook updates (**£9 million**) and a higher charge in Commercial Banking[104](index=104&type=chunk) - The Group's probability-weighted total expected credit loss (ECL) allowance was broadly stable at **£3,402 million** (31 December 2024: **£3,481 million**)[104](index=104&type=chunk) | Metric | At 30 Jun 2025 | At 31 Dec 2024 | Change (basis points) | | :-------------------------------- | :------------- | :------------- | :----------- | | Stage 2 loans as % of total lending | 9.2% | 9.7% | (50) | | Stage 3 loans as % of total lending | 1.4% | 1.5% | (10) | | Stage 2 coverage | 2.8% | 2.9% | (10) | | Stage 3 coverage | 16.4% | 16.5% | (10) | [Overview](index=21&type=section&id=Overview) [Impairment Charge (Credit) by Division](index=22&type=section&id=Impairment%20charge%20(credit)%20by%20division) [Total Expected Credit Loss Allowance](index=22&type=section&id=Total%20expected%20credit%20loss%20allowance) [Total Expected Credit Loss Allowance Sensitivity to Economic Assumptions](index=23&type=section&id=Total%20expected%20credit%20loss%20allowance%20sensitivity%20to%20economic%20assumptions) [Loans and Advances to Customers and Expected Credit Loss Allowance](index=24&type=section&id=Loans%20and%20advances%20to%20customers%20and%20expected%20credit%20loss%20allowance) [Retail Credit Risk](index=26&type=section&id=Retail) [UK Mortgages](index=26&type=section&id=UK%20mortgages) [Credit Cards](index=28&type=section&id=Credit%20cards) [UK Unsecured Loans and Overdrafts](index=28&type=section&id=UK%20unsecured%20loans%20and%20overdrafts) [UK Motor Finance](index=28&type=section&id=UK%20Motor%20Finance) [Other Retail](index=28&type=section&id=Other) [Commercial Banking Credit Risk](index=29&type=section&id=Commercial%20Banking) [Impairment](index=29&type=section&id=Impairment) [Commercial Banking UK Real Estate Analysis](index=30&type=section&id=Commercial%20Banking%20UK%20Real%20Estate%20analysis) [Liquidity Risk](index=31&type=section&id=Liquidity%20risk) The Group maintained a strong funding and liquidity position in H1 2025, with a stable loan to deposit ratio of **95%**. The liquidity coverage ratio (LCR) was **145%**, exceeding regulatory minimums, despite a slight reduction due to increased lending. Term issuance volumes totaled **£8.0 billion**, contributing to diverse funding sources - LCR eligible assets reduced to **£131.8 billion**, primarily due to increased lending, offset by a rise in customer deposits[147](index=147&type=chunk) - Term issuance volumes in H1 2025 totaled **£8.0 billion** across various currencies and markets, with full-year wholesale issuance requirements expected to be around **£10.0 billion**[150](index=150&type=chunk) | Metric | At 30 Jun 2025 | At 31 Dec 2024 | Change | | :-------------------------------- | :------------- | :------------- | :----- | | Loan to deposit ratio | 95% | 95% | 0% | | Total wholesale funding | £92.2 billion | £92.5 billion | (0.3%) | | Liquidity coverage ratio (LCR) | 145% | 146% | (1%) | | Net stable funding ratio | 127% | 129% | (2%) | [Overview](index=31&type=section&id=Overview) [Group Funding Requirements and Sources](index=32&type=section&id=Group%20funding%20requirements%20and%20sources) [Reconciliation of Group Funding to the Balance Sheet](index=32&type=section&id=Reconciliation%20of%20Group%20funding%20to%20the%20balance%20sheet) [Analysis of Term Issuance in Half-Year to 30 June 2025](index=32&type=section&id=Analysis%20of%20term%20issuance%20in%20half-year%20to%2030%20June%202025) [Interest Rate Sensitivity](index=33&type=section&id=Interest%20rate%20sensitivity) The Group centrally manages interest rate risk to earnings and capital by hedging net liabilities. The sterling structural hedge increased to **£244 billion**. Illustrative sensitivities show that a **+50 basis points** parallel shift in interest rates could increase net interest income by approximately **£150 million** in Year 1, while a **-50 basis points** shift could decrease it by approximately **£200 million** - The notional balance of the sterling structural hedge increased to **£244 billion** at 30 June 2025 (from **£242 billion** at 31 December 2024)[161](index=161&type=chunk) - Sensitivities are greater on downward parallel shifts due to pricing lags on deposit accounts[162](index=162&type=chunk) | Parallel Shift | Year 1 (£ million) | Year 2 (£ million) | Year 3 (£ million) | | :------------- | :---------- | :---------- | :---------- | | +50 bps | c.150 | c.350 | c.600 | | +25 bps | c.75 | c.175 | c.300 | | -25 bps | (c.100) | (c.175) | (c.300) | | -50 bps | (c.200) | (c.350) | (c.600) | [Statutory Information (Detailed Financial Statements and Notes)](index=34&type=section&id=STATUTORY%20INFORMATION) [Condensed Consolidated Half-Year Financial Statements (Unaudited)](index=34&type=section&id=Condensed%20consolidated%20half-year%20financial%20statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for the half-year ended 30 June 2025, including the income statement, statement of comprehensive income, balance sheet, statement of changes in equity, and cash flow statement, prepared in accordance with IAS 34 - The condensed consolidated half-year financial statements are prepared in accordance with International Accounting Standard 34 (IAS 34), Interim Financial Reporting[194](index=194&type=chunk) - The directors continue to adopt the going concern basis, confident in maintaining adequate funding and capital levels despite UK economic uncertainties[196](index=196&type=chunk) [Condensed Consolidated Income Statement (Unaudited)](index=35&type=section&id=Condensed%20consolidated%20income%20statement%20(unaudited)) [Condensed Consolidated Statement of Comprehensive Income (Unaudited)](index=36&type=section&id=Condensed%20consolidated%20statement%20of%20comprehensive%20income%20(unaudited)) [Condensed Consolidated Balance Sheet (Unaudited)](index=37&type=section&id=Condensed%20consolidated%20balance%20sheet%20(unaudited)) [Condensed Consolidated Statement of Changes in Equity (Unaudited)](index=38&type=section&id=Condensed%20consolidated%20statement%20of%20changes%20in%20equity%20(unaudited)) [Condensed Consolidated Cash Flow Statement (Unaudited)](index=41&type=section&id=Condensed%20consolidated%20cash%20flow%20statement%20(unaudited)) [Notes to the Condensed Consolidated Half-Year Financial Statements (Unaudited)](index=42&type=section&id=Notes%20to%20the%20condensed%20consolidated%20half-year%20financial%20statements%20(unaudited)) This section provides detailed notes to the unaudited condensed consolidated half-year financial statements, covering accounting policies, critical judgments, segmental analysis, and specific financial items such as fair values, expected credit losses, and provisions. It also addresses contingent liabilities and ongoing legal/regulatory matters - Accounting policies are consistent with those applied in the 2024 annual financial statements, with a presentational change for net investment return and finance expense in respect of insurance and investment contracts[197](index=197&type=chunk)[198](index=198&type=chunk) - Critical accounting judgments and key sources of estimation uncertainty remain unchanged from 2024, with climate-related risks not having a material short-term impact on judgments and estimates[203](index=203&type=chunk)[204](index=204&type=chunk) - The Group's total expected credit loss allowance was **£3,402 million** at 30 June 2025, with adjustments for specific segments and macroeconomic outlooks[112](index=112&type=chunk)[279](index=279&type=chunk) - Regulatory and legal provisions totaled **£1,457 million**, with the most significant item being the **£1.15 billion** provision for motor finance commission arrangements, pending a Supreme Court decision[318](index=318&type=chunk)[319](index=319&type=chunk) [Note 1: Basis of Preparation and Accounting Policies](index=42&type=section&id=Note%201:%20Basis%20of%20preparation%20and%20accounting%20policies) [Note 2: Critical Accounting Judgements and Key Sources of Estimation Uncertainty](index=43&type=section&id=Note%202:%20Critical%20accounting%20judgements%20and%20key%20sources%20of%20estimation%20uncertainty) [Note 3: Segmental Analysis](index=43&type=section&id=Note%203:%20Segmental%20analysis) [Note 4: Net Fee and Commission Income](index=47&type=section&id=Net%20fee%20and%20commission%20income%204) [Note 5: Insurance Business](index=47&type=section&id=Insurance%20business%205) [Note 6: Operating Expenses](index=50&type=section&id=6%20Operating%20expenses) [Note 7: Retirement Benefit Obligations](index=51&type=section&id=7%20Retirement%20benefit%20obligations) [Note 8: Impairment](index=52&type=section&id=Impairment%208) [Note 9: Tax](index=53&type=section&id=Tax%209) [Note 10: Fair Values of Financial Assets and Liabilities](index=53&type=section&id=10%20Fair%20values%20of%20financial%20assets%20and%20liabilities) [Note 11: Derivative Financial Instruments](index=60&type=section&id=11%20Derivative%20financial%20instruments) [Note 12: Allowance for Expected Credit Losses](index=60&type=section&id=12%20Allowance%20for%20expected%20credit%20losses) [Note 13: Debt Securities in Issue](index=67&type=section&id=Debt%20securities%20in%20issue%2013) [Note 14: Provisions](index=68&type=section&id=14%20Provisions) [Note 15: Earnings Per Share](index=70&type=section&id=15%20Earnings%20per%20share) [Note 16: Dividends on Ordinary Shares and Share Buyback](index=70&type=section&id=16%20Dividends%20on%20ordinary%20shares%20and%20share%20buyback) [Note 17: Contingent Liabilities, Commitments and Guarantees](index=71&type=section&id=Contingent%20liabilities,%20commitments%20and%20guarantees%2017) [Signature](index=73&type=section&id=SIGNATURE)