Lloyds Banking Group (LLOY) UBS London European Conference 2026 summary

Trading and full-year outlook

• YTD NII rose 10% to £11.1bn and other operating income rose 10%; Q4 trading expected to continue the pattern.

• FY NII expected modestly above £14.9bn; other operating income growth expected in the high single digits, consistent with Q3 delivery.

• Current trading described as resolute and consistent with guidance and full-year objectives.

2027 NII outlook

• 2027 NII expected to grow at a healthy, mid-single-digit pace, slower than 2026’s high-single-digit growth.

• Structural hedge tailwind expected to contribute about £1bn of growth in 2027, versus £1.5bn in 2026.

• Asset and deposit markets expected to remain competitive in 2027; deposit flows are more modest, with new deposits typically going into fixed-term accounts.

• 2027 volumes expected to be broadly similar to 2026; non-banking NII expected to grow modestly.

Lending, deposits and asset quality

• Lending grew about £18bn, or ~3% YTD, including securitisations; credit demand remained robust despite rates staying higher than expected.

• Mortgages grew about 1%, or ~£4bn including securitisations, while new-completions market share was roughly 17.6%; consumer finance businesses grew 6%-7% YTD.

• Deposits totalled £503bn; quarterly retail deposit migration of £1bn-£1.5bn was viewed as manageable.

• FY asset quality guidance remained ~25 bps; the £930m charge equated to 25 bps, with early-warning indicators low and stable.