Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — H1 2026 Earnings Presentation
71 slides from Lloyds Banking's earnings presentation, Jul 30, 2026
Slide 1: 2026 half year results and strategy update
2026 half year results and strategy update Lloyds Banking Group 30 July 2026
Slide 2: Agenda & key messages
Agenda & key messages 2022 -2026 Successful execution of 2022 -26 strategy strategic progress Back to growth, laying strong foundations for the next phase Sustained strength in financial performance H1 2026 results Supporting 30% increase in interim ordinary dividend and £1bn buyback Reimagined cust
Slide 3: 2022-26 strategic progress
2022 -26 strategic progress Charlie Nunn
Slide 4: The UK financial services leader - customer focused, digitally led
The UK financial services leader - customer focused, digitally led Market leader Digital and AI leader Cost and capital leader Mobile app users, UK’s Since 2021 c.28m Retail customers c.22m largest digital bank >£2bn Gross cost savings c.7bn Annual digital logons c.1m Commercial relationships Cumula
Slide 5: Market leader: Broad-based growth since 2021
Market leader: Broad -based growth since 2021 c.£5bn net income growth, mid -single -digit CAGR Customer experience improvements Net income (£bn) 12pp increase in FRS Net Promoter Score vs. 2021 2 c.£2bn Market share gains 3pp average market share increase in target areas c.£5bn Balance sheet growth
Slide 6: Digital and AI leader: Established the platform for innovation
Digital and AI leader: Established the platform for innovation Strong execution against a clear digital and AI strategy Divisional examples c.11k tech and data hires since 2021; platform teams c.80% weighted to tech talent Invested in people and >60% of applications on Cloud (2021: Negligible); >50%
Slide 7: Cost and capital leader: Created capacity to fund growth
Cost and capital leader: Created capacity to fund growth Successfully mitigated inflationary and regulatory headwinds Significant gross cost savings Operating costs (£bn) >£2bn realised to date (original target: c.£1bn by 2024) 54% CIR 1 <50% CIR Productivity enhancements c.45% increase in active cu
Slide 8: Helping Britain Prosper
Delivery on our Purpose, driving profitable growth A consistent Purpose, addressing critical societal issues Impact since 2022 Illustrative examples Access to housing >£10bn Financing support to the social housing sector >£35bn Helping Regional development New finance to small business customers Bri
Slide 9: On track to deliver 2026 and accelerate beyond
On track to deliver 2026 and accelerate beyond New strategic c.£2bn Diversified 8% initiative revenues Strategic initiative revenues income growth OOI CAGR vs. 2021 (annualised); by FY 2026 Net income contribution +4pp Significant gross >£2bn Improved <50% cost savings Gross cost savings realised op
Slide 10: HY results update
HY results update William Chalmers
Slide 11: Sustained strength in financial performance
Sustained strength in financial performance 1 (£m) H1 H1 YoY Q2 Q1 QoQ Financial performance 2026 2025 % 2026 2026 % Net interest income 7,278 6,655 9 3,709 3,569 4 Other income 3,310 2,969 11 1,705 1,605 6 Operating lease depreciation (841) (710) (18) (452) (389) (16) • Statutory PAT £3.1bn in H1;
Slide 12: Robust balance sheet growth
Robust balance sheet growth Q2 lending change (£bn) Q2 deposit change (£bn) Retail Commercial Retail Commercial + £1.5bn/0% +£ 3.1bn/3% £(0.3)bn/(0)% +£5. 2bn/+3% (+£3.3bn / 1% excl. securitisation) • Lending £491.5bn, up £ 5.3 bn / 1% in Q2, 2% YTD. Growth across portfolios o Mortgages up £0.2bn Qo
Slide 13: Continued growth in net interest income
Continued growth in net interest income Net interest income and banking net interest margin (£bn, bps) £3.57bn £3.71bn • H1 NII £7.3bn, up 9% YoY, Q2 up 4% QoQ 9 • H1 AIEAs £475.7bn, up 4% YoY; Q2 £477.9bn, up 1% QoQ 2 (3) (3) 3.22% 3.17% • H1 NIM 319 bps; Q2 NIM 32 2bps up 5bp QoQ o Hedge tailwind
Slide 14: Continued momentum in other income
Continued momentum in other income Divisional other income (£m) YoY 2,969 3,151 3,310 11% • OOI £ 3.3 bn in H1, up 11% YoY; £1.7bn in Q2 197 >100 % 78 150 • Broad -based other income momentum in H1 818 19% 689 742 o Retail: Growth in Transport and payments o CB: L oan Markets & Transaction banking g
Slide 15: Continued discipline on costs
Continued discipline on costs Operating costs (£ m) Flat YoY 266 173 (270) (167) 4,876 4,874 • H1 operating costs £4.9bn, flat YoY; £2.4bn in Q2 o Reflects continued efficiency savings, lower investment 1 (including severance) and timing H1 2025 Cost savings Pay & inflation Investment, BAU growth, H
Slide 16: Continued strong and stable credit performance
Continued strong and stable credit performance Impairment (£m) H1 H1 YoY Q2 Q1 QoQ 2026 2025 £m 2026 2026 £m Charge (credit) pre updated MES 1 537 451 86 343 194 149 Retail 488 426 62 264 224 40 Commercial Banking 48 25 23 78 (30) 108 • Strong and stable credit performance reflecting prudent Other 1
Slide 17: Sustained strength in return on tangible equity
Sustained strength in return on tangible equity Statutory profit (£m) H1 H1 YoY Q2 Q1 QoQ 2026 2025 % 2026 2026 % Underlying profit 4,215 3,561 18 2,210 2,005 10 Restructuring (34) (9) (16) (18) 11 Volatility and other items 112 (48) 74 38 95 • Strong H1 RoTE 17.1%; Q2 17.0% Statutory profit before
Slide 18: Strong capital generation
Strong capital generation Risk weighted assets (£bn) 2.3 8.1 - (4.1) 241.8 235.5 • RWAs £241.8bn; up £6 .3b n in H1, up £1.0bn in Q2 2025 Underlying Credit / Other Optimisation H1 2026 o Strong lending growth offset by continued optimisation lending calibrations movements • Strong 108 bps capital ge
Slide 19: Significant growth in capital distributions
Significant growth in capital distributions Dividend per share (pence) YoY 3.65 2.40 3.17 2.76 2.40 2.43 1.84 2.11 • Strong capital generation enables continued growth in 1.60 shareholder distributions 1.58 30 % 0.80 0.92 1.06 1.22 • Interim dividend of 1.58p, 30 % higher YoY, reflecting capital pos
Slide 20: 2026 guidance
Sustained strength in financial performance 2026 guidance Net interest income >£14.9bn Cost:income <50% CIR (Operating costs <£9.9bn) Asset quality ratio c.25bps Purpose RoTE > 16% Helping Capital generation >200bps Britain CET1 ratio target Capital distribution Pay down to c.13.0% Progressive and s
Slide 21: Strategy overview
Strategy overview Charlie Nunn
Slide 22: Stable UK economy, LBG uniquely positioned to grow faster
Stable UK economy, LBG uniquely positioned to grow faster Stable UK economy with potential to move to higher growth trajectory Resilient growth Capacity to spend and invest Constructive regulatory environment Average real GDP growth 1.4% p.a. to 2030 Household debt:income down >15pp 1 vs. 2021 Condu
Slide 23: Accelerate 2030 builds on existing participation choices
Accelerate 2030 builds on existing participation choices Leading UK customer franchise , with focused international growth Unrivalled product breadth, scale, connectivity and data as the UK’s sole integrated financial services provider Unique brands and customer reach across human, digital, third -p
Slide 24: Strategy
Strategy Purpose Accelerate through reimagined customer experiences , increased Group connectivity , and a productivity step -change , enabled by pioneering technology Helping Britain Strategic pillars Prosper Grow the core Innovate to deepen & diversify Simplify to outperform Customer Promise Makin
Slide 25: Three pillars represent distinct opportunities
Three pillars represent distinct opportunities Grow the core Innovate to deepen & diversify Simplify to outperform Focus areas Scale our market leading businesses Increase cross -Group connectivity Build future -ready skills and infrastructure Accelerate in faster growing areas within our core Exten
Slide 26: Driving sustainable value creation
Driving sustainable value creation Building on our competitive advantage… Continued income growth Mid -single -digit net income CAGR Market Digital and Cost and High -single -digit OOI CAGR leader AI leader capital leader Improving operating leverage <45% CIR in 2030, with YoY reductions …to deliver
Slide 27: Business priorities
. (Accelerate a Business priorities
Slide 28: Accelerate 2030 is underpinned by our Purpose
Accelerate 2030 is underpinned by our Purpose A consistent Purpose, addressing critical societal issues… …with bold 2030 ambitions Selected 2027 -2030 examples Access to housing £40bn e.g. Reimagined home journeys, supporting social housing finance Financing to First Time Buyers Regional development
Slide 29: Business priorities: Retail
Business priorities: Retail Strategic differentiators c. 28m c.1k #1 >3m £395bn / £322bn Customers, c.50% of UK Communities with LBG Mortgages, PCA, Cards, Mass affluent Customer loans / adult population human presence Loans, Motor customers deposits Accelerate 2030: Priorities 2030 value 2026 - 203
Slide 30: The UK's most rewarding bank
Retail: Deep dive The UK’s most rewarding bank Deep relationships today… …with further opportunity c.70% >24% >8m Being rewarded for loyalty Main bank #1 PCA balance Unique visitors to is the strongest driver of relationships market share Rewards portal in 2026 customer advocacy Build Group -wide Re
Slide 31: A broader, transformed Homes experience
Retail: Deep dive A broader, transformed Homes experience Market leadership today… …with further opportunity £325bn +4pp 10 days c.£9tn Mortgage balances Direct to bank mix Median time taken for non -digital Residential property 19% stock market share vs. market mortgage offers value in UK Meet broa
Slide 32: The UK's first integrated transport ecosystem
Retail: Deep dive The UK’s first integrated transport ecosystem Market leadership today… Create a single trusted platform for every transport need Initial launch live Simple, joined -up solutions to remove hassle , reduce costs and #1 create a more empowering experience UK vehicle financing and leas
Slide 33: Business priorities: Commercial
Business priorities: Commercial Strategic differentiators c.1m c.21% 1 Leading CIB positions £96bn £179bn BCB and CIB Small business deposit UK - I&PF 2 , cash mgmt., Customer Customer relationships market share sustainable bonds 3 loans deposits Accelerate 2030: Priorities 2030 value 2026 - 2030 ne
Slide 34: BCB: The most trusted, digital and AI-enabled Commercial bank
Commercial: Deep dive BCB: The most trusted, digital and AI -enabled Commercial bank Deep relationships today… Digital and AI -enabled delivery of an enhanced product offering Leading Seamless digital and AI -enabled experiences Live today SME lending and deposit Scale auto credit decisioning and ne
Slide 35: CIB: A focused, modern, client-centric business
Commercial: Deep dive CIB: A focused, modern, client -centric business Strong momentum… Enhance capabilities and presence c.70% Disciplined Cash, Debt, Risk offering Growth in CIB income (H1 Cash: Scale a digital -first and API -enabled transaction banking proposition, embedded in client ecosystems
Slide 36: Business priorities: IP&I
Business priorities: IP&I Strategic differentiators Leading positions >3m c.£250bn c.£140bn c.£5bn Home Insurance, General Insurance Open book AuA Workplace AUA Deferred profit , store of Annuities, Workplace policies (doubled vs. 2021 1) (up >70% vs 2021) future value Accelerate 2030: Priorities 20
Slide 37: The UK's only integrated bancassurance offering
IP&I: Deep dive The UK’s only integrated bancassurance offering Strong progress to date… Drive bancassurance success across our unique product range c.20% Convenient, integrated experiences Embedding in app Mortgage protection take -up rate Simplify journeys, including one -click onboarding for Home
Slide 38: A unique end-to-end, lifetime wealth proposition
IP&I: Deep dive A unique end -to -end, lifetime wealth proposition A comprehensive, growing business… …with further opportunity c.£110bn c.50% c.£5tn c.£20bn Open book wealth AUM Growth in D2C AuA Forecast UK investment assets by Annual outflows to third -party (up c.145% vs. 2021 1) since 2021 2030
Slide 39: Business priorities: Equity Investments
Business priorities: Equity Investments Strategic differentiators Award winning >£2bn >65 >10k c.85% Mid -market private LDC assets under Locations across UK with Lloyds Living homes by Of new Lloyds Living equity business (LDC) management LDC -backed businesses the end of 2026 homes from CIB client
Slide 40: LDC/Lloyds Living: Unique non-banking businesses
Equity Inv : Deep dive LDC/Lloyds Living: Unique non -banking businesses A valuable business... Build further value in LDC and Lloyds Living LDC spotlight Scale to drive profitable growth c.£370m H1 2026 Equity Investments H1 2026 OOI, Consolidate LDC’s leading position with deeper relationships up
Slide 41: Cross-Group priorities: An outstanding connected opportunity
Cross -Group priorities: An outstanding connected opportunity Bancassurance penetration Seamless customer journeys and customer value added End -to -end wealth proposition Customer flow through self -directed, advised propositions and Workplace Whole -Group Innovation Banking proposition BCB relatio
Slide 42: Driving growth through new, unique cross-Group offerings
Connected: Deep dive Driving growth through new, unique cross -Group offerings Uniquely differentiated Provide value in ways that only LBG can Launching soon c. 28m Retail customers Connected Commerce Connect our c. 28m Retail customers with c.1m Commercial clients c.7bn Targeted merchant campaigns
Slide 43: Digital assets: Unlocking the opportunity
Connected: Deep dive Digital assets: Unlocking the opportunity Established leadership Innovate to deliver broad -based customer solutions Lay foundations through industry initiatives Consumer benefits GBTD: Pilot to production across use cases (P2P payments, remortgaging, settlement) Digital remortg
Slide 44: Simplify to outperform: Enabling our strategic acceleration
Simplify to outperform : Enabling our strategic acceleration Invest in talent and infrastructure Digital and AI step change Maximise capital efficiency Build a Group -wide Build future -ready skills Agentic AI capability 20k colleagues on upskilling programmes Drive disciplined Illustrative outcomes
Slide 45: AI: A scale financial services leader, with significant opportunity
Simplify: Deep dive AI: A scale financial services leader, with significant opportunity Established leadership Scale leadership characteristics: Recognised industry leader , incl. Copilot to be rolled out to all Trust, Breadth, ranked #15 in Evident AI index colleagues (from c.40k today) Strategic p
Slide 46: Financial outlook reinforces our track record
Financial outlook reinforces our track record Growing revenues and improved operating leverage driving stronger, sustainable returns 2022 -2024 2025 -2026 2027 -2030 Returning to growth Building momentum Accelerate 2030 Group net income (£bn) c.£ 20 bn c.£ 15bn 2021 2022 2023 2024 2025 2026 2027 202
Slide 47: Financial outlook
Financial outlook William Chalmers
Slide 48: Prudent macro assumptions over plan period
Prudent macro assumptions over plan period Stable economic outlook, resilient strategy in a range of scenarios Economic growth Interest rates Unemployment and HPI Average r eal GDP growth 1.4% p.a. to 2030 Terminal base rate assumption of 3.50% Unemployment peak at 5.5% in Q1 2027 Average nominal GD
Slide 49: Robust financial framework: Long-term, sustainable value
Robust financial framework: L ong -term , sustainable value Continued income growth Financial foundations Investment discipline Investment Improving operating capacity Efficiency focus leverage Risk management Stronger returns & capital generation Growing, sustainable shareholder distributions Lloyd
Slide 50: Investment discipline: Value focused execution, efficient funding
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Investment discipline: Value focused execution, efficient funding Strategic and financial value Higher investment financed by gross cost saves Operating expenses (£bn) Reimagined customer
Slide 51: Efficiency focus: Remains a keystone
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Efficiency focus: Remains a keystone Proven costs track record; further opportunity Capital efficient model Net income per average RWA (%) 2022 -H1 2026 2027 -2030 2021 7.7% >£2bn c.£2bn
Slide 52: Risk management: High quality book, prudent risk appetite
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Risk management: High quality book, prudent risk appetite Consistently low AQR Key drivers Asset quality ratio (bps) – Total (bars) and pre -MES (line) Low risk, diversified balance sheet
Slide 53: Continued income momentum
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Continued income momentum Net income growth (£bn) Innovate to deepen & diversify Grow the core e.g. > £2bn e.g. Digital wallet, Transport Digital assets, Incl. c. £2bn SI ecosystem, Conne
Slide 54: NII supported by diversified lending and deposit growth
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation NII supported by diversified lending and deposit growth… Diversified and growing balance sheet CIB 14% BCB 6% Lending Nominal GDP+ growth across strategic areas, sustainable returns Retai
Slide 55: ...and underpinned by hedge tailwind
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation …and underpinned by hedge tailwind NII growth (£bn) Structural hedge income (£bn) Upside implied 2021 £11.2bn from market rates 2026 >£14.9bn Retail Broad -based lending growth >£9bn Plan
Slide 56: Capital efficient OOI growth, increasing diversification
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Capital efficient OOI growth, increasing diversification Cross -Group opportunities OOI growth (£bn) (e.g. Connected Commerce) 8% OOI CAGR FY 2021 -H1 2026 e.g. e.g. LDC, Bancassurance, L
Slide 57: Consistently improving operating leverage
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Consistently improving operating leverage CIR to improve every year Key underpins Cost:income ratio (%) 54% Revenue Mid -single -digit net income growth CAGR < 50% <45% Cost save s c.£2bn
Slide 58: Stronger, sustainable returns on a growing equity base
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Stronger, sustainable returns on a growing equity base Sustainable growth in RoTE … …with progress through the plan RoTE (%) RoTE (%) Material TNAV and earnings growth c.20% c.20% >18% >1
Slide 59: Growing capital generation, growing shareholder distributions
Financial foundations Continued income growth Improving operating leverage Stronger returns & capital generation Growing capital generation, growing shareholder distributions Growing absolute capital generation on increasing RWAs Targeted deployment to sustain growing distributions Considered half -
Slide 60: Guidance overview
Guidance overview 2026 2027 -2030 Annual guidance to be provided each year -end Mid -single -digit net income CAGR Income NII >£14.9 bn High -single -digit OOI CAGR Cost:income <50% CIR (Operating costs <£9.9bn) <45% CIR in 2030, with YoY reductions Asset quality c.25bps 25 -30bps through the plan p
Slide 61: Closing remarks
Closing remarks Charlie Nunn 61
Slide 62: Driving sustainable value creation
Driving sustainable value creation Building on our competitive advantage… Continued income growth Mid -single -digit net income CAGR Market Digital and Cost and High -single -digit OOI CAGR leader AI leader capital leader Improving operating leverage <45% CIR in 2030, with YoY reductions …to deliver
Slide 63: Q&A
Q&A
Slide 64: Appendix
Appendix
Slide 65: Growth across lending books
Growth across lending books Mortgage book (Book size £bn, Gross margin % 1) Cards, Loans & Motor (Book size £bn, Gross margin % 1) 0.89% 0.85 % 0.77 % 318 323 325 YTD H1 2026 18 11 8 9 46 5.09% 8 6 8 15 16 (4)% 16 H2 2025 17 11 8 8 44 5.26 % 11 12 16 H1 2025 16 10 8 8 42 5.61% 126 127 125 Cards Loan
Slide 66: Targeted deposit performance supporting structural hedge
Targeted deposit performance supporting structural hedge Hedged balances 2 (£bn) Customer deposits (Book size £bn, Gross margin % 1) 1.29% 1.43% 1.56% 244 244 246 501 YTD 494 496 79 79 80 Structural 101 103 103 - hedge • Total deposits135 of £ x bn, up £ x bn 135 or x % in H1 135 • Retail deposits30
Slide 67: Quarterly P&L and key ratios
Quarterly P&L and key ratios (£m) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Net interest income 3,709 3,569 3,529 3,451 3,361 3,294 3,276 3,231 3,154 Other income 1,705 1,605 1,594 1,557 1,517 1,452 1,433 1,430 1,394 Operating lease depreciation (452) (389) (379) (365)
Slide 68: Updated economic scenarios
Updated economic scenarios Scenario ECL 1 (£m) Measure (%) 2026 2027 2028 2029 2030 Ave. 26 -30 GDP 1.4 2.4 1.9 1.6 1.6 1.8 Unemployment rate 4.8 3.7 3.1 3.1 3.3 3.6 HPI growth 1.8 4.5 7.7 7.5 6.0 5.5 Upside (30%) 2,499 CRE price growth 3.3 6.6 3.1 2.0 0.7 3.1 UK Bank Rate 3.85 4.79 5.19 5.46 5.65 4
Slide 69: Low mortgage LTVs
Low mortgage LTVs Q2 2026 1 2025 1 2010 1 Mainstream Buy to let Specialist Total Total Total Average LTVs 45.4% 48.9% 31.4% 45.7% 45.0% 55.6% New business LTVs 66.9% 61.8% N/A 66.2% 64.1% 60.9% ≤80% LTV 81.4% 99.9% 99.3% 84.2% 85.6% 57.0% >80 –90% LTV 15.8% 0.1% 0.5% 13.4% 12.2% 16.2% >90 –100% LTV
Slide 70: Investor Relations contacts
Investor Relations contacts Douglas Radcliffe Rohith Chandra -Rajan Group Investor Relations Director Director, Investor Relations [email protected] Rohith.Chandra [email protected] Nora Thoden Tom Grantham Director, Investor Relations – ESG Senior Manager, Investor Relation
Slide 71: Disclaimer
Disclaimer Important notice The information, statements, views and opinions contained in this document and accompanying discussion (“this Presentation”) are for informational and reference purposes only . This Presentation has been provided by the Group (defined below) . This Presentation does not p