Lloyds Banking Group (LLOY) Investor presentation summary

Business overview and strategy

• Operates four core divisions: Retail, Commercial, Consumer Relationships, and Wealth & Insurance, offering a broad range of financial products and services through trusted brands.

• Maintains market leadership in UK digital banking with c.28m retail customers and c.22m mobile app users.

• Strategic focus on digital and AI leadership, cost efficiency, and capital strength.

• Launched the Accelerate 2030 strategy to drive growth through reimagined customer experiences, increased connectivity, and productivity improvements enabled by technology.

• Strategic pillars include growing the core, innovating to deepen and diversify, and simplifying to outperform.

Financial performance and outlook

• H1 2026 net income rose 9% YoY to £9.7bn, with net interest income up 9% and other income up 11%.

• Operating costs remained flat YoY at £4.9bn, with a cost:income ratio of 50.4% in H1 and 49.0% in Q2.

• Statutory profit after tax reached £3.1bn in H1 2026, with a return on tangible equity (ROTE) of 17.1%.

• Lending increased to £491.5bn and deposits to £500.9bn in Q2 2026, both up 1% quarter-on-quarter.

• Guidance for 2026 includes net interest income >£14.9bn, cost:income ratio <50%, ROTE >16%, and CET1 ratio target of c.13%.

Capital, dividends, and shareholder returns

• Strong capital generation enabled a 30% YoY dividend growth and a £1.0bn buyback in H1 2026.

• Interim dividend per share increased to 1.58p, with total capital return of £1.9bn in the half.

• Committed to progressive and sustainable ordinary dividends, with excess capital distribution considered half-yearly.

• Targeting >225bps capital generation by 2030, supporting growing shareholder distributions.