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Why invest in Lloyds Banking Group?

Higher, more sustainable returns as we continue to Help Britain Prosper.

Lloyds Banking Group is a leading UK-focused financial services provider.

Strategy

Continuing to deliver against our strategic objectives, transforming the business to create higher and more sustainable value.

Performance

Delivering a robust financial performance, in line with expectations. Our performance provides confidence in delivery of financial guidance.

Returns

Strong returns with progressive and sustainable ordinary dividend. Aiming to deliver higher, more sustainable returns and capital generation.

How we create value, and what sets us apart


We have a number of distinct competitive strengths that collectively differentiate our proposition.

Leading UK customer franchise with deep customer insight

More than 27 million customers, with extensive reach across the UK. Customer data and analysis ensures we can meet the needs of these customers more effectively.

Unique customer proposition

As a leading digital bank in the UK, we're serving all our customers’ banking, investment and insurance needs in one place through a comprehensive product range.

All-channel distribution focus with digital leadership and trusted brands

Operating through a range of distribution channels ensures our customers can interact with us when and how they want.

Operating at scale with cost discipline

Our scale and efficiency enable us to operate more effectively.

Focused and capital generative business model

Allowing significant investment while returning capital to shareholders.

Financial strength and disciplined risk management

Strong capital position. Continue to take a disciplined approach to risk, as reflected through the quality of our portfolio and underwriting criteria.

Dedicated colleagues with strong values

Highly engaged, customer focused, diverse workforce with significant expertise and experience.

Download our annual report to read more about our business model.
 

2023 annual report

Purpose-driven strategy delivers for broader stakeholders


Building on our strong foundations and distinct competitive strengths, our purpose of Helping Britain Prosper forms the basis of our strategy to profitably deliver for all of our stakeholders.
 

The Group has a progressive and sustainable ordinary dividend policy whilst maintaining the flexibility to return further surplus capital through buybacks or special dividends.
 

First graph shows an interim dividend increase of 15% year-on-year, from 0.67p in 2021 to 1.06p in 2024. Second graph shows track record of growing shareholder distributions, from £3.4 billion in 2021 to £3.8 billion in 2023.

2024 Q3 IMS highlights


The Group delivered a robust financial performance in the third quarter of 2024, with growth in income alongside continued cost discipline and strong asset quality. Our performance allows us confidently to reaffirm our 2024 guidance.
 

£1.3bn

Statutory profit after tax

£4.3bn

Net income

£2.3bn

Operating costs

15.2%

Return on tangible equity

52.5p

Tangible net asset value per share

14.3%

CET1 ratio

Confidence in 2024 and 2026 guidance

2024 guidance

  • NIM >290bps 
  • Operating costs c.£9.3bn plus c.£0.1bn BoE levy 
  • AQR <20bps 
  • RoTE c.13% 
  • RWAs £220-£225bn 
  • Capital generation c.175bps1 
  • Expect to pay down to a CET1 ratio of c.13.5%

2026 guidance

  • Cost:income <50%
  • RoTE >15%
  • Capital generation >200bps1
  • Expect to pay down to a CET1 ratio of c.13.0%

Who we are

 

We're a leading UK-based financial services group with over 325 years' history and a unique family of household brands. Our purpose at Lloyds Banking Group is Helping Britain Prosper.

Brand logos for: Lloyds Bank, Halifax, Bank of Scotland, Scottish Widows, Schroders, MBNA, Black Horse, Lex Autolease, Birmingham Midshires, Embark Group, AMC, LDC, IWeb, Citra, Cavendish Online and Tusker.

Find out more about our brands

Related content

Useful links


Our financial performance

2023 annual report

Shareholder factbook

Our purpose and strategy

Annual report and accounts

Our annual report provides disclosures relating to our strategic, financial, operational, environmental and social performance. 

Annual report highlights

Environmental, social and governance

Core to our purpose and strategy is our focus on building a more inclusive society and supporting the transition to a low carbon economy.

ESG at Lloyds Banking Group