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Mar 31, 2025
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Lloyd's Q1 2025 Earnings Report
Lloyds Banking Group reported strong Q1 2025 results with higher net income, increased EPS, and continued growth in net interest income and deposits.
Key Takeaways
Lloyds delivered a solid Q1 2025 with £4.4 billion in revenue and £1.1 billion in net income. EPS improved to 1.7p, and the bank maintained a stable CET1 ratio of 13.5%. Asset quality remained resilient, and capital generation was robust despite severance costs and temporary RWA increases.
Net income reached £1.1 billion, supported by resilient asset quality.
Revenue grew to £4.4 billion, driven by higher net interest income and other income.
EPS per ADS was $0.085, reflecting stronger profitability.
CET1 ratio held steady at 13.5%, reflecting strong capital generation.
Forward Guidance
Lloyds reaffirmed its 2025 outlook with strong capital generation, operating cost discipline, and resilient asset quality.
Positive Outlook
- Capital generation expected around 175bps for 2025
- Net interest income guidance maintained at approximately £13.5 billion
- Operating costs targeted at £9.7 billion for 2025
- Asset quality ratio expected to remain around 25bps
- CET1 ratio to be managed down to ~13.0% by end of 2026
Challenges Ahead
- Temporary increase in RWAs impacted capital build
- Upfront severance costs raised Q1 expenses
- Ongoing mortgage and deposit headwinds
- No specific updates on cost of revenue or cash position
- EPS growth may be tempered by economic uncertainties
Historical Earnings Impact
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Avg. Return Before/After Earnings
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