Second-quarter net income rose 10% to £5.0bn, as expected. Within that, both interest income and other income were higher. Banking net interest margin was up from 3.04% to 3.22%.
Underlying profit rose 9% to £2.2bn (2.3% better than expected). Growth was driven by higher net income and good cost control, partly offset by higher impairments.
The group's CET1 ratio, a key measure of financial strength, stands at 13.1% after planned shareholder returns (target minimum = c.13.0%). An interim dividend of 1.58p was announced, up 30%, alongside a new £1bn share buyback.
2026 underlying net interest income is still expected to be greater than £14.9bn. There are also new 2030 targets, aiming for mid-single-digit annual net income growth, a cost-to-income ratio below 45% and a return on tangible equity of around 20%.
The shares were broadly flat in early trading.
Our view
HL view to follow.
Lloyds key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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