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- **Revenue growth**: Net income up 6% to GBP 8.9 billion, driven by NII (+5%) and OOI (+9%)
- **Dividend boost**: Interim dividend +15% to 1.22p per share
- **AI leadership**: 800+ live AI models, 10,000 staff using Gen AI tools
- **Mortgage momentum**: GBP 5.6 billion H1 growth, 19% market share of net new lending
- **Cost control**: Operating costs +4% YoY, on track for 2026 <50% cost/income ratio
- **Capital strength**: 86bps H1 capital generation, CET1 13.8% (pro forma)
- **Hedge power**: Structural hedge income +GBP 1.2 billion YoY, 2025 hedge 97% locked in

**【CEO Summary Section】**
- Lloyds delivered strong strategic progress in H1 2025, with net income up 6% to GBP 8.9 billion and ROTE of 14.1%. 
- Confirmed 2025 guidance and reaffirmed 2026 targets, including ROTE >15% and capital generation >200bps.
- Accelerated transformation with GBP 1.5 billion in gross cost savings since 2021, and over GBP 1.5 billion of additional revenues from strategic initiatives.
- Emphasized leadership in AI with 800+ live AI models, including Gen AI tools used by 10,000 frontline staff.
- Mortgage lending grew GBP 5.6 billion in H1, with 19% market share of net new lending.
- Launched Lloyd's Premier offering, gaining 25% share of direct-to-bank remortgages.
- Expanded protection product penetration to 20% of mortgage customers (vs. 15% last year).

**【CFO Financial Commentary】**
- GAAP net income: GBP 2.5 billion (H1 2025)
- ROTE: 14.1% (H1 2025)
- Net income: GBP 8.9 billion (+6% YoY)
- Operating costs: GBP 4.9 billion (+4% YoY), tracking to full-year target of GBP 9.7 billion
- Capital generation: 86bps (H1 2025), on track for 175bps full-year
- CET1 ratio: 13.8% (pro forma)
- Interim dividend: 1.22p per share (+15% YoY)
- Structural hedge notional: GBP 244 billion (up GBP 2 billion Q2)
- Hedge income: GBP 2.6 billion (H1 2025), up GBP 0.7 billion YoY
- Mortgage spreads: 70bps (Q2), stable outlook
- Deposit growth: GBP 11.3 billion (H1 2025), 2% YoY
- RWAs: GBP 231 billion (H1 2025), up 6.8% YoY

**【Q&A Highlights】**
- **Mortgage spreads**: Q2 at 70bps, similar to Q3 expectations; maturity margins ~90bps
- **Deposits**: Strong H1 growth (GBP 11.3 billion), retail savings up 30% YoY in ISA season
- **Structural hedge**: 2025 hedge 97-98% locked in, 2026 hedge 4/5 locked in; 2025 hedge income +GBP 1.2 billion YoY
- **Capital generation**: 2026 target of 200bps assumes balanced growth in NII and OOI
- **Motor finance**: No charge in Q2; awaiting Supreme Court judgment and FCA consultation
- **Protection penetration**: Aiming for >20% of mortgage customers, best-in-class bancassurance model
- **Equity investments**: Growing workplace pensions (+6% YoY), launching LTAF in H2 2025

Lloyds Banking Group plc (LYG) H1 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LYG

LYG fundamentals

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