Lloyds Banking Group plc

Lloyds Banking Group plc is a UK-focused financial services group providing a range of banking and financial products. The company operates through several divisions, including Retail. The Retail division offers financial services products to personal customers. These products include current accounts, savings, mortgages, credit cards, unsecured loans, motor finance, and leasing solutions. Retail aims to build lasting relationships with customers and improve their financial resilience. It operates the largest digital bank in the UK, employing a mobile-first strategy to enhance digital experience. Outside the UK, Retail has a growing European business focused on mortgages and savings. The division seeks to deepen consumer relationships, deliver personalized propositions, broaden its intermediary offering, improve customer experience, and increase operational efficiency through strategic investment and increased data use. In 2025, the Retail division's underlying profit increased by 164 million to 3,356 million, up from 3,192 million in 2024. This increase was primarily driven by higher underlying net interest income and higher underlying other income. These gains were partially offset by increased operating lease depreciation, higher underlying operating costs, higher remediation costs, and a higher underlying impairment charge. Underlying net interest income for Retail increased by 707 million to 9,637 million in 2025, compared to 8,930 million in 2024, driven by structural hedge earnings and higher unsecured loan balances, partially offset by mortgage refinancing and deposit churn headwinds. Underlying other income increased by 282 million to 2,636 million in 2025, from 2,354 million in 2024, due to fleet growth and higher average rental values in UK Motor Finance, alongside strong current account and credit card income. Operating lease depreciation increased by 126 million to 1,445 million in 2025, from 1,319 million in 2024, reflecting fleet growth, depreciation of higher value vehicles, and declines in used electric car prices.