Lloyds reported fourth quarter net income of £4.7bn, up 8% year-on-year. Within that, both interest income and other income were higher than last year. Banking net interest margin was up from 2.97% to 3.10%.
Underlying profit rose 94% to £1.9bn (9% better than expected). The year-on-year growth was largely due to a one-off charge impacting last year’s figure, and the better-than-expected results were driven by lower impairments.
A final dividend of 2.43p takes the 2025 total to 3.65p, up 15%. A £1.75bn buyback was also announced.
After accounting for the dividend and buyback, the group’s CET1 ratio, a key measure of financial strength, stands at 13.2% (target minimum = 13.0%).
2026 underlying net interest income is expected to be around £14.9bn.
The shares fell 1.0% in early trading.
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Lloyds key facts
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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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