Lloyds Banking Group (LLOY) Q3 2025 earnings summary

Executive summary

• Delivered robust financial performance in Q3 2023 and the first nine months of 2025, with strong income momentum, cost discipline, and stable asset quality, despite a significant £800 million motor finance charge in Q3.

• Completed full acquisition and rebranding of Schroders Personal Wealth (now Lloyds Wealth), enhancing wealth management capabilities and supporting £17 billion in assets under administration.

• Advanced digital asset strategy, including UK-first FX derivatives trade with tokenized assets and leadership in GB Tokenized Deposits.

• Strategic progress and ongoing execution in digital, technology, and AI initiatives.

Financial highlights

• Year-to-date statutory profit after tax: £3.3 billion, down from £3.8 billion YoY, impacted by the motor finance charge; return on tangible equity (ROTE): 11.9% (14.6% ex-motor provision).

• Net income for first nine months: £13.6 billion, up 6% YoY; Q3 net income up 3% sequentially.

• Net interest income (NII) YTD: £10.1 billion, up 6% YoY; Q3 NII: £3.5 billion, up 3% QoQ.

• Other income YTD: £4.5 billion, up 9% YoY; Q3 £1.6 billion, up 3% sequentially.

• Operating costs YTD: £7.2 billion, up 3% YoY; Q3 costs down 1% sequentially.

• YTD impairment charge: £618 million (asset quality ratio: 18bps); Q3 charge: £176 million (15bps).

• CET1 ratio: 13.8% after dividend accrual.

Outlook and guidance

• 2025 ROTE expected around 12% (14% ex-motor); 2026 guidance remains highly confident with >15% ROTE.

• Full-year NII guidance upgraded to circa £13.6 billion; 2026 NII expected to grow meaningfully.

• Asset quality ratio guidance improved to circa 20bps for full year.

• Full-year capital generation expected at 145bps (175bps ex-motor); CET1 ratio to reduce to ~13% by end-2026.

• Cost-to-income ratio target for 2026: below 50%.