Lloyds Banking Group posted statutory profit after tax of £1.13 billion for the first quarter of 2025, alongside net income of £4.39 billion, a 4 per cent improvement on the same period a year earlier. Return on tangible equity was 12.6 per cent. The group reiterated its full-year 2025 guidance for net interest income of approximately £13.5 billion and a return on tangible equity of around 13.5 per cent.
Net interest margin rose 6 basis points quarter-on-quarter to 3.03 per cent. The CET1 capital ratio stood at 13.5 per cent.
LENDING AND MARGIN
Total lending grew by £7.1 billion during the quarter, with the expansion predominantly concentrated in the residential mortgage book.
The margin improvement came mainly from a growing structural hedge contribution, as maturing balances are reinvested at higher rates, and from strong deposit volumes, partly offset by continued asset margin compression and deposit churn.
Business and Commercial Banking lending edged down 1 per cent in the quarter to £29.4 billion.
IMPAIRMENT CHARGE
The group took a £100 million central impairment adjustment for the potential impact of US tariff policies, lifting the quarterly impairment charge to £309 million and leaving statutory profit after tax 7 per cent lower year on year.