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LYG

Lloyds Banking Group plc

LYG

Lloyds Banking Group plc • NYSE
$5.10 ▲ 2.41% (+0.12)
Market Cap $76.73 B
52w High $5.14
52w Low $2.56
Dividend Yield 0.17%
P/E 17
Volume 8.80M
Outstanding Shares 15.04B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $-4.328B ▼ $-5.502B ▼ $738M ▼ -17.052% ▼ $0.19 ▲ $1.174B ▼
Q2-2025 $13.885B ▲ $11.898B ▲ $1.513B ▲ 10.897% ▼ $0.084 ▲ $1.987B ▲
Q1-2025 $4.695B ▼ $3.178B ▼ $1.134B ▲ 24.153% ▲ $0.066 ▲ $1.517B ▲
Q4-2024 $24.137B ▲ $23.313B ▲ $644M ▼ 2.668% ▲ $0.029 ▼ $824M ▼
Q3-2024 $-5.106B $-6.929B $1.363B -26.694% $0.079 $1.823B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $61.846B ▼ $937.464B ▲ $891.831B ▲ $45.633B ▼
Q2-2025 $64.225B ▲ $919.282B ▲ $872.411B ▲ $46.717B ▼
Q1-2025 $62.891B ▲ $909.725B ▲ $862.097B ▲ $47.628B ▲
Q4-2024 $62.705B ▲ $906.697B ▲ $860.809B ▲ $45.716B ▼
Q3-2024 $59.055B $900.842B $854.421B $46.195B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $1.513B ▲ $0 $0 $0 $0 $0
Q1-2025 $1.006B ▲ $0 $0 $0 $0 $0
Q4-2024 $690M ▼ $0 $0 $0 $0 $0
Q3-2024 $1.317B ▼ $0 $0 $0 $0 $0
Q2-2024 $1.345B $0 $0 $0 $0 $0

Five-Year Company Overview

Income Statement

Income Statement Lloyds’ earnings profile looks solid but a bit bumpier recently. Revenue has grown strongly compared with the early 2020s, helped by higher interest income, but profitability actually peaked a year earlier and then eased back. That suggests rising costs, higher credit provisions, or margin pressure are offsetting some of the revenue gains. Compared with the pandemic period, profits are clearly stronger and much more stable, but the most recent year shows that growth is no longer in a straight line up. Overall, this is a mature, profitable UK bank with decent earnings power, but sensitive to the interest‑rate environment and the health of UK borrowers.

Balance Sheet

Balance Sheet The balance sheet is large, diversified and broadly stable, with total assets drifting up over time rather than swinging wildly. Equity has been fairly steady, though it has edged down from its recent high, which is worth watching as it is the main buffer against future losses. Debt levels have moved around but are not obviously out of control for a bank of this size. Cash and liquid resources have come down from earlier peaks, which may reflect balance‑sheet optimization or shifts in funding, but it also means less of an excess liquidity cushion than a few years ago. Overall, the balance sheet looks typical of a major UK retail and commercial bank: robust but exposed to the UK economy and housing market.

Cash Flow

Cash Flow Cash flows are more volatile than the earnings line, which is common for banks, but the pattern still matters. Earlier in the decade, operating cash flow and free cash flow were strongly positive, backing up reported profits. More recently, both have weakened and most recently turned negative, suggesting sizeable swings in lending, deposits, or working capital. Capital spending has been relatively steady but clearly rising compared with the start of the period, consistent with heavy investment in technology and digital platforms. The combination of solid accounting profits but weaker recent cash flows points to a bank that is actively reshaping its book and funding, which can pay off over time but adds near‑term uncertainty.

Competitive Edge

Competitive Edge Lloyds has a strong home‑market franchise in the UK, with a very large customer base, leading shares in core retail products like current accounts and mortgages, and a portfolio of long‑established brands such as Lloyds, Halifax, and Bank of Scotland. This scale gives it rich data, low unit costs, and high brand recognition, all of which are hard for smaller challengers to replicate. Its digital presence is a major strength: tens of millions of active digital customers and very high engagement through its app and online channels. That puts it in a good position versus traditional peers and many fintechs, which often lack the same breadth of customer relationships and deposit funding. On the risk side, the bank is heavily tied to the UK economy and housing market, and faces constant competitive pressure from nimble fintechs, other large banks, and regulatory demands. Its strong capital position gives resilience, but profitability still depends heavily on interest rates, credit quality, and regulatory costs.

Innovation and R&D

Innovation and R&D Lloyds is clearly leaning into technology as a strategic lever, not just a support function. It is investing heavily in AI, data, and cloud infrastructure, including building a large‑scale AI financial assistant planned for broad rollout in the next couple of years. If executed well, this could deepen customer engagement, improve cross‑selling, and lower servicing costs. The bank is using hundreds of AI models already to speed up decisions and automate processes, and it has been modernizing its core systems through cloud partnerships and fintech investments. Its open‑banking features and integration of banking, insurance, and pensions into a single digital experience are points of differentiation in the UK market. The main risks are execution and complexity: large tech programs can run over budget, take longer than expected, or create operational and cyber‑security challenges. Success depends on turning these investments into smoother customer journeys and lower structural costs, rather than just higher IT spending.

Summary

Lloyds Banking Group today looks like a mature, domestically focused UK bank with solid but somewhat cyclical earnings, a broadly stable and well‑capitalized balance sheet, and a cash‑flow profile that reflects active balance‑sheet management and heavy investment. Its core strengths are scale, brand trust, and a dominant digital presence in UK retail banking, now being reinforced by a large, long‑term push into AI‑driven services and cloud‑based infrastructure. These moves could deepen its competitive moat if they translate into better service, higher productivity, and more personalized offerings. Key uncertainties center on the UK macro backdrop, interest‑rate trends, credit quality in the loan book, regulatory pressure, and the bank’s ability to deliver its ambitious technology roadmap on time and on budget. The story is one of a large incumbent using its financial strength and data advantage to reinvent itself digitally, with clear upside potential but also meaningful execution and economic risk along the way.

NEWS

October 23, 2025 · 8:36 AM UTC

Lloyds Bank PLC: Q3 2025 Interim Management Statement

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