[Q1 2025 Performance Overview](index=2&type=section&id=Q1%202025%20Results) [Financial Highlights and 2025 Guidance](index=2&type=section&id=Sustained%20strength%20in%20financial%20performance) Lloyds Banking Group reported strong Q1 2025 financial performance with £1.1 billion profit after tax and reaffirmed 2025 guidance Q1 2025 Key Performance Indicators | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Statutory Profit After Tax | £1.1bn | £1.2bn | -8.3% | | Net Income | £4.4bn | £4.2bn | +4% | | Underlying Net Interest Income | £3.3bn | £3.2bn | +3% | | Banking Net Interest Margin | 3.03% | 2.95% | +8 bps | | Return on Tangible Equity | 12.6% | 13.3% | -0.7 pp | | Underlying Impairment Charge | £309m | £57m | +442% | | CET1 Ratio | 13.5% | 13.9% | -0.4 pp | Reaffirmed 2025 Full-Year Guidance | Metric | 2025 Guidance | | :--- | :--- | | Underlying Net Interest Income | c.£13.5 billion | | Operating Costs | c.£9.7 billion | | Asset Quality Ratio | c.25 basis points | | Return on Tangible Equity | c.13.5% | | Capital Generation | c.175 basis points | - The Group achieved strong growth in lending and deposits, with underlying loans and advances increasing by **£7.1 billion** and customer deposits by **£5.0 billion** during the quarter[8](index=8&type=chunk) [Underlying Financial Statements Summary](index=3&type=section&id=INCOME%20STATEMENT%20%28UNDERLYING%20BASIS%29A%20AND%20KEY%20BALANCE%20SHEET%20METRICS) Underlying profit decreased 13% year-on-year to £1,532 million, impacted by higher impairment and costs, despite net income growth Q1 2025 Underlying Income Statement vs. Prior Periods (£m) | Metric | Q1 2025 | Q1 2024 | YoY Change | Q4 2024 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Underlying Net Interest Income | 3,294 | 3,184 | +3% | 3,276 | +1% | | Net Income | 4,391 | 4,241 | +4% | 4,378 | 0% | | Operating Costs | (2,550) | (2,402) | +6% | (2,450) | +4% | | Underlying Impairment Charge | (309) | (57) | +442% | (160) | +93% | | Underlying Profit | 1,532 | 1,757 | -13% | 993 | +54% | | Statutory Profit After Tax | 1,134 | 1,215 | -7% | 700 | +62% | Key Ratios and Balance Sheet Metrics | Metric | Q1 2025 | Q1 2024 | Q4 2024 | | :--- | :--- | :--- | :--- | | Banking Net Interest Margin | 3.03% | 2.95% | 2.97% | | Cost:Income Ratio | 58.1% | 57.2% | 73.7% | | Return on Tangible Equity | 12.6% | 13.3% | 7.1% | | Underlying Loans and Advances | £466.2bn | £448.5bn | £459.1bn | | Customer Deposits | £487.7bn | £469.2bn | £482.7bn | | CET1 Ratio | 13.5% | 13.9% | 14.2% | [Quarterly Financial Trends](index=5&type=section&id=QUARTERLY%20INFORMATIONA) Quarterly trends show stable net income, rising costs, increased impairment, and an improving banking net interest margin Key Metrics Trend (Last 5 Quarters) | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income (£m) | 4,391 | 4,378 | 4,346 | 4,152 | 4,241 | | Underlying Profit (£m) | 1,532 | 993 | 1,853 | 1,740 | 1,757 | | Banking NIM | 3.03% | 2.97% | 2.95% | 2.93% | 2.95% | | Asset Quality Ratio | 0.27% | 0.14% | 0.15% | 0.05% | 0.06% | | CET1 Ratio | 13.5% | 14.2% | 14.3% | 14.1% | 13.9% | [Detailed Performance and Balance Sheet Review](index=7&type=section&id=REVIEW%20OF%20PERFORMANCEA) [Balance Sheet Analysis](index=7&type=section&id=BALANCE%20SHEET%20ANALYSIS) Balance sheet expanded with total assets at £909.9 billion, driven by growth in loans (£466.2 billion) and deposits Loan and Deposit Portfolio Breakdown (£bn) | Category | 31 Mar 2025 | 31 Dec 2024 | Quarterly Change | | :--- | :--- | :--- | :--- | | **Loans and Advances** | | | | | UK mortgages | 317.1 | 312.3 | +1.5% | | Credit cards | 15.9 | 15.7 | +1.3% | | Corporate & Institutional | 58.5 | 57.9 | +1.0% | | **Total Underlying Loans** | **466.2** | **459.1** | **+1.5%** | | **Deposits** | | | | | Retail current accounts | 102.5 | 101.3 | +1.2% | | Retail savings accounts | 210.1 | 208.2 | +0.9% | | Commercial Banking | 164.9 | 162.6 | +1.4% | | **Total Customer Deposits** | **487.7** | **482.7** | **+1.0%** | [Income Statement Analysis](index=11&type=section&id=Income%20statementA) Net income increased 4% year-on-year to £4,391 million, driven by growth in net interest income and other income - Underlying net interest income (NII) grew **3% YoY** to **£3,294 million**, supported by an improved banking net interest margin of **3.03%** (up **8 bps YoY**) and higher average interest-earning assets[29](index=29&type=chunk) - The sterling structural hedge contributed **£1.2 billion** to total income in Q1 2025, an increase from **£1.0 billion** in Q1 2024. The Group expects the hedge to contribute **£1.2 billion** more in 2025 than in 2024[31](index=31&type=chunk) - Underlying other income increased **8% YoY** to **£1,452 million**, driven by a **16%** rise in Retail (primarily UK Motor Finance) and an **8%** increase in Insurance, Pensions and Investments[32](index=32&type=chunk) - Operating lease depreciation increased to **£355 million** from **£283 million** in Q1 2024, attributed to fleet growth, higher value vehicles, and declines in used electric car prices[33](index=33&type=chunk) [Costs, Asset Quality, and Capital](index=12&type=section&id=REVIEW%20OF%20PERFORMANCE%20%28continued%29) Operating costs rose 6% to £2,550 million, impairment increased, and the CET1 ratio remained strong at 13.5% - Operating costs increased **6% YoY**, driven by inflation and planned higher severance costs front-loaded into Q1. The cost:income ratio was **58.1%**[34](index=34&type=chunk)[36](index=36&type=chunk) - No new remediation charges were recognized in Q1 2025. The Group awaits a Supreme Court judgment in July regarding motor finance commission arrangements, which will inform the FCA's next steps[35](index=35&type=chunk) - The underlying impairment charge was **£309 million** (Asset Quality Ratio of **27 bps**), which included a **£100 million** central adjustment to address downside risks related to potential US tariff policies[37](index=37&type=chunk) - The CET1 ratio was **13.5%**, with **27 basis points** of capital generated during the quarter. Risk-weighted assets (RWAs) increased by **£5.5 billion** to **£230.1 billion**, partly due to a temporary **£2.5 billion** increase from hedging activity[45](index=45&type=chunk)[46](index=46&type=chunk) [Risk, Capital, and Economic Outlook](index=14&type=section&id=ADDITIONAL%20INFORMATION) [Credit Risk and Impairment Details](index=14&type=section&id=Underlying%20impairmentA) Q1 2025 impairment charge was £309 million, including a £100 million central adjustment for tariff risks Underlying Impairment Charge Breakdown (£m) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Charges pre-updated MES | 274 | 249 | | Updated economic outlook (MES) | 35 | (192) | | **Underlying impairment charge** | **309** | **57** | Loans and ECL Allowance by Stage (31 Mar 2025) | Category | Stage 1 | Stage 2 | Stage 3 | Total | | :--- | :--- | :--- | :--- | :--- | | **Gross Lending (£m)** | 413,103 | 47,307 | 9,251 | 469,661 | | *% of Total* | *87.9%* | *10.1%* | *2.0%* | *100%* | | **ECL Allowance (£m)** | 902 | 1,344 | 1,477 | 3,723 | - The ECL allowance includes a **£100 million** central adjustment to address downside risks from potential US tariff policies, which were not fully captured in the standard models[37](index=37&type=chunk)[56](index=56&type=chunk)[62](index=62&type=chunk) [Economic Assumptions and Scenarios](index=17&type=section&id=Base%20case%20and%20MES%20economic%20assumptions) UK base case anticipates slow GDP growth, rising unemployment, and gradual rate cuts, with a £100 million ECL adjustment for tariff risks UK Economic Assumptions - Base Case Scenario (2025) | Metric | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | | :--- | :--- | :--- | :--- | :--- | | GDP Growth (QoQ) | 0.2% | 0.2% | 0.3% | 0.3% | | Unemployment Rate (end of Q) | 4.6% | 4.7% | 4.8% | 4.8% | | House Price Growth (YoY) | 3.8% | 3.8% | 2.4% | 1.7% | | UK Bank Rate (end of Q) | 4.50% | 4.25% | 4.00% | 4.00% | | CPI Inflation (YoY) | 2.8% | 3.6% | 3.6% | 3.5% | - The Group's base case assumes a slow economic expansion, with risks largely captured through alternative scenarios (upside, downside, severe downside)[60](index=60&type=chunk) - A **£100 million** central adjustment was made to reflect potential ECL impact from US tariff announcements in early April, as these were deemed not fully captured in the quarter-end models[62](index=62&type=chunk) [Supplementary and Statutory Information](index=9&type=section&id=Supplementary%20Information) [Statutory Results](index=9&type=section&id=GROUP%20RESULTS%20%E2%80%93%20STATUTORY%20BASIS) Statutory profit before tax decreased 7% to £1,517 million due to higher expenses and impairment, despite income growth Statutory Income Statement Summary (£m) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | 3,204 | 3,045 | +5% | | Total Income | 4,695 | 4,387 | +7% | | Operating Expenses | (2,868) | (2,703) | +6% | | Impairment Charge | (310) | (56) | +454% | | Profit Before Tax | 1,517 | 1,628 | -7% | | Profit After Tax | 1,134 | 1,215 | -7% | | Basic Earnings Per Share | 1.7p | 1.7p | 0% | [Alternative Performance Measures (APMs)](index=19&type=section&id=ALTERNATIVE%20PERFORMANCE%20MEASURES) This section reconciles key non-statutory metrics, including banking net interest margin and return on tangible equity Banking Net Interest Margin (NIM) Reconciliation | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Banking Underlying Net Interest Income (£m) | 3,406 | 3,289 | | Average Interest-Earning Banking Assets (£bn) | 455.5 | 449.1 | | **Banking Net Interest Margin** | **3.03%** | **2.95%** | Return on Tangible Equity (RoTE) Reconciliation | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Shareholders (£m) | 1,006 | 1,069 | | Average Tangible Equity (£bn) | 32.3 | 32.4 | | **Return on Tangible Equity** | **12.6%** | **13.3%** |

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Summary: Lloyds (LYG) - Lloyds currently holds a Momentum Style Score of B, indicating a positive momentum characteristic [2] - The stock has a Zacks Rank of 2 (Buy), suggesting it is expected to outperform the market [3] - Over the past week, Lloyds shares increased by 4.74%, outperforming the Zacks Banks - Foreign industry, which rose by 3.96% [5] - In the last quarter, Lloyds shares rose by 26.54%, and over the past year, they increased by 55.16%, while the S&P 500 experienced declines of -9.81% and a modest gain of 9.65% respectively [6] - The average 20-day trading volume for Lloyds is 32,956,570 shares, indicating strong trading activity [7] Earnings Outlook - In the past two months, three earnings estimates for Lloyds have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.27 to $0.37 [9] - For the next fiscal year, three estimates have also moved upwards, reflecting a positive earnings outlook [9] Conclusion - Considering the positive momentum indicators and earnings outlook, Lloyds is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [10][11]

Core Insights - Unisys has partnered with Thought Machine to deliver end-to-end core and branch banking solutions that enhance technology-first strategies for banks [1][2] - The integrated solution combines Unisys's advanced branch technology with Thought Machine's Vault Core platform, utilizing AI and advanced security features to improve service quality [2][3] - The collaboration aims to transform branch banking into a more efficient, secure, and customer-centric experience, referred to as "branch banking 2.0" [3] Company Overview - Thought Machine is recognized for its cloud-native core banking and payments technology, with its Vault Core platform being utilized by major banks globally [5] - Unisys is a global technology solutions provider that offers a range of services including cloud, AI, and enterprise computing, aimed at helping organizations unlock their potential [6]

Core Insights - Lloyds Banking Group is enhancing its customer experience by expanding its collaboration with Oracle, focusing on cloud migration and digital innovation [1][4] - The multi-year agreement allows Lloyds to implement a multicloud strategy by migrating its Oracle databases to Oracle Database@Azure, leveraging Oracle Cloud Infrastructure (OCI) within Microsoft Azure data centers [2][6] - The use of Oracle Exadata Cloud@Customer enables Lloyds to operate databases in its own data centers, providing flexibility and consistent performance across cloud and on-premises environments [3][4] Company Strategy - Lloyds is prioritizing data utilization to innovate and deliver new services more rapidly, which is critical for its growth and diversification [4] - The multicloud approach allows for flexible deployment of Oracle databases, accelerating the adoption of digital technologies and enhancing service performance [4][5] Industry Context - The financial services sector is rapidly evolving in terms of cloud adoption, with Lloyds positioned as a leader in this transition [5] - Oracle's distributed cloud offerings provide a comprehensive and flexible cloud solution, enabling organizations like Lloyds to streamline their migration and foster innovation [7][8]

Lloyds Banking Group plc (NYSE:LYG) Full Year 2020 Earnings Conference Call February 24, 2021 4:30 AM ET Company Participants Robin Budenberg – Chairman António Horta-Osório – Executive Director and Group Chief Executive Officer William Chalmers – Executive Director and Chief Financial Officer Conference Call Participants Raul Sinha – JPMorgan Guy Stebbings – Exane BNP Paribas Alvaro Serrano – Morgan Stanley Edward Firth – KBW Andrew Coombs – Citi Chris Cant – Autonomous Aman Rakkar – Barclays Jonathan Pier ...