Lloyds Banking Group Reports Q1 2025 Financial Performance

In Q1 2025, Lloyds Banking Group reported sustained financial performance. The Group's net income grew by 4%, with statutory profit after tax at £1.1 billion. Net interest income rose by 3%, driven by a banking net interest margin of 3.03% and higher interest-earning assets. Additionally, other income increased by 8%, buoyed by enhanced customer activity and strategic initiatives. Operating costs rose by 6% due to inflation and strategic investments.

The Group maintained asset quality, with an impairment charge of £309 million. Lending and deposits grew, with loans and advances increasing by £7.1 billion and customer deposits by £5 billion. The risk-weighted assets expanded by £5.5 billion, mostly due to temporary hedging activities.

Lloyds reaffirmed its 2025 guidance, expecting net interest income of £13.5 billion, operating costs of £9.7 billion, and a return on tangible equity of 13.5%.