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Dec 31, 2025
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Lloyd's Q4 2025 Earnings Report
Lloyds reported strong Q4 2025 results with improved profitability, solid lending growth, and robust capital generation.
Key Takeaways
Lloyds Banking Group posted a strong Q4 2025 with higher EPS, increased net income, and continued momentum across lending and deposits. Operating income grew year-over-year, while credit performance remained stable and capital strength was reinforced by a healthy CET1 ratio.
Q4 net income was £1.435bn, with EPS rising to 2.2p
Net interest margin for Q4 improved to 3.10%
Total Q4 revenue reached £4.744bn, driven by growth in NII and OOI
Strong CET1 capital ratio of 13.2% and 15.7% RoTE in Q4
Forward Guidance
Lloyds upgraded its 2026 guidance, aiming for improved efficiency, higher returns, and continued income growth.
Positive Outlook
- Cost:income ratio targeted below 50%
- Operating costs expected to stay under £9.9bn
- RoTE expected to exceed 16%
- Net interest income projected around £14.9bn
- Capital generation expected to exceed 200bps
Challenges Ahead
- Pressure from mortgage repricing expected to continue
- Deposit churn to impact net interest income
- Non-banking NII to remain a headwind
- Commercial loan growth challenged by repayments
- CET1 ratio expected to be managed down to ~13% by end-2026
Historical Earnings Impact
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Avg. Return Before/After Earnings
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