Lloyds Banking Group(US:LYG)2025-07-24 08:30Financial Performance - Lloyds Banking Group's H1 2025 net income increased by 6% YoY to £8.914 billion[6, 26] - The group's underlying profit before impairment reached £4.003 billion, an 11% increase YoY[26] - The company's statutory profit after tax was £2.544 billion, with a return on tangible equity (RoTE) of 14.1%[26, 82] - The group's net interest income (NII) for H1 2025 was £6.7 billion, a 5% increase YoY[37] Lending and Deposits - Lending increased by 3% YTD, with total lending at £471.0 billion in Q2 2025, up £4.8 billion or 1% QoQ[6, 31] - Deposits increased by 2% YTD, with total deposits at £493.9 billion in Q2 2025, up £6.2 billion or 1% QoQ[6, 31] - The company provided over £8 billion in lending to first-time buyers in H1 2025[6] Capital and Efficiency - The group's capital generation was strong at 86bps in H1 2025[6] - The pro forma CET1 ratio was 13.8%[26, 27] - The company achieved gross cost savings of approximately £1.5 billion compared to 2021, with around £300 million in H1 2025[17] Strategic Initiatives and Outlook - The company expects approximately £1.2 billion higher hedge income in 2025 compared to 2024, and approximately £1.5 billion higher in 2026 compared to 2025[58] - The group reaffirms its 2025 guidance, including net interest income of approximately £13.5 billion and an asset quality ratio of approximately 25bps[5, 38, 97] - The company is targeting over £1.5 billion of additional revenues from strategic initiatives by 2026[16]