Lloyds Banking Group Q4 Earnings Call Highlights

Lloyds Banking Group (NYSE:LYG) outlined accelerating strategical advancement and upgraded 2026 targets arsenic it reported 2025 full-year results, highlighting stronger income momentum, continued outgo actions, and higher planned shareholder distributions. Management said it expects to conscionable oregon transcend the outcomes of its existent five-year plan, which began successful aboriginal 2022, and volition supply details connected its adjacent strategical signifier successful July alongside half-year results.

Chief enforcement Charlie Nunn said 2025 was “another beardown year,” pointing to a instrumentality to top-line gross maturation and broad-based franchise momentum, including marketplace stock gains successful idiosyncratic existent accounts. The radical reported nett income of GBP 18.3 billion, up 7% versus 2024, driven by maturation successful some nett involvement income (NII) and different operating income (OOI).

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Finance manager William Chalmers said statutory nett aft taxation was GBP 4.8 billion. Return connected tangible equity (RoTE) was 12.9%, oregon 14.8% excluding the centrifugal concern proviso booked successful the 3rd quarter. Tangible nett plus worth per stock roseate to 57 pence, up 4.6 pence successful 2025.

Shareholder distributions were increased. Lloyds announced a 15% increase successful its mean dividend and a stock buyback of up to GBP 1.75 billion. The committee intends to urge a last dividend of 2.43 pence per share, bringing the full dividend to 3.65 pence for 2025. Chalmers said the combined superior instrumentality for the twelvemonth would beryllium up to GBP 3.9 billion, representing astir 6% of the group’s existent marketplace capitalization.

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Lloyds ended 2025 with lending balances of GBP 481 billion, up GBP 22 billion oregon 5% for the year. Mortgages roseate GBP 10.8 billion to GBP 323 billion, supported by a travel stock of astir 19%. In user lending, cards, loans, and centrifugal grew GBP 4.1 billion oregon 10% year-on-year, with absorption stating it was taking marketplace stock crossed each 3 segments.

Total deposits accrued GBP 13.8 billion to GBP 496.5 billion, up 3% for the year. Retail deposits roseate GBP 5.5 billion, portion commercialized deposits were up GBP 8.5 billion, with non-interest-bearing deposits stabilizing and increasing somewhat successful the 2nd half. Fourth-quarter deposits were down slightly, which absorption attributed to seasonal outflows successful definite commercialized subsectors, actions connected low-margin funding, and ongoing deposit management.