UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

1 May 2025

Commission File number 001-15246

LLOYDS BANKING GROUP plc

(Translation of registrant's name into English)

33 Old Broad Street

London

EC2N 1HZ

United Kingdom

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (1)

________.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (7)

________.

This report on Form 6-K shall be deemed incorporated by reference into the company's Registration Statement on Form F-3 (File

No. 333-265452) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents

or reports subsequently filed or furnished.

FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities

Exchange Act of 1934, as amended, and section 27A of the US Securities Act of 1933, as amended, with respect to

the business, strategy, plans and/or results of Lloyds Banking Group plc together with its subsidiaries (the Group)

and its current goals and expectations. Statements that are not historical or current facts, including statements

about the Group’s or its directors’ and/or management’s beliefs and expectations, are forward-looking statements.

Words such as, without limitation, ‘believes’, ‘achieves’, ‘anticipates’, ‘estimates’, ‘expects’, ‘targets’, ‘should’,

‘intends’, ‘aims’, ‘projects’, ‘plans’, ‘potential’, ‘will’, ‘would’, ‘could’, ‘considered’, ‘likely’, ‘may’, ‘seek’, ‘estimate’,

‘probability’, ‘goal’, ‘objective’, ‘deliver’, ‘endeavour’, ‘prospects’, ‘optimistic’ and similar expressions or variations

on these expressions are intended to identify forward-looking statements. These statements concern or may affect

future matters, including but not limited to: projections or expectations of the Group’s future financial position,

including profit attributable to shareholders, provisions, economic profit, dividends, capital structure, portfolios,

net interest margin, capital ratios, liquidity, risk-weighted assets (RWAs), expenditures or any other financial items

or ratios; litigation, regulatory and governmental investigations; the Group’s future financial performance; the level

and extent of future impairments and write-downs; the Group’s ESG targets and/or commitments; statements of

plans, objectives or goals of the Group or its management and other statements that are not historical fact and

statements of assumptions underlying such statements. By their nature, forward-looking statements involve risk

and uncertainty because they relate to events and depend upon circumstances that will or may occur in the future.

Factors that could cause actual business, strategy, targets, plans and/or results (including but not limited to the

payment of dividends) to differ materially from forward-looking statements include, but are not limited to: general

economic and business conditions in the UK and internationally (including in relation to tariffs); imposed and

threatened tariffs and changes to global trade policies; acts of hostility or terrorism and responses to those acts, or

other such events; geopolitical unpredictability; the war between Russia and Ukraine; the conflicts in the Middle

East; the tensions between China and Taiwan; political instability including as a result of any UK general election;

market related risks, trends and developments; changes in client and consumer behaviour and demand; exposure

to counterparty risk; the ability to access sufficient sources of capital, liquidity and funding when required; changes

to the Group’s credit ratings; fluctuations in interest rates, inflation, exchange rates, stock markets and currencies;

volatility in credit markets; volatility in the price of the Group’s securities; natural pandemic and other disasters;

risks concerning borrower and counterparty credit quality; risks affecting insurance business and defined benefit

pension schemes; changes in laws, regulations, practices and accounting standards or taxation; changes to

regulatory capital or liquidity requirements and similar contingencies; the policies and actions of governmental or

regulatory authorities or courts together with any resulting impact on the future structure of the Group; risks

associated with the Group’s compliance with a wide range of laws and regulations; assessment related to

resolution planning requirements; risks related to regulatory actions which may be taken in the event of a bank or

Group failure; exposure to legal, regulatory or competition proceedings, investigations or complaints; failure to

comply with anti-money laundering, counter terrorist financing, anti-bribery and sanctions regulations; failure to

prevent or detect any illegal or improper activities; operational risks including risks as a result of the failure of third

party suppliers; conduct risk; technological changes and risks to the security of IT and operational infrastructure,

systems, data and information resulting from increased threat of cyber and other attacks; technological failure;

inadequate or failed internal or external processes or systems; risks relating to ESG matters, such as climate change

(and achieving climate change ambitions) and decarbonisation, including the Group’s ability along with the

government and other stakeholders to measure, manage and mitigate the impacts of climate change effectively,

and human rights issues; the impact of competitive conditions; failure to attract, retain and develop high calibre

talent; the ability to achieve strategic objectives; the ability to derive cost savings and other benefits including, but

without limitation, as a result of any acquisitions, disposals and other strategic transactions; inability to capture

accurately the expected value from acquisitions; assumptions and estimates that form the basis of the Group’s

financial statements; and potential changes in dividend policy. A number of these influences and factors are

beyond the Group’s control. Please refer to the latest Annual Report on Form 20-F filed by Lloyds Banking Group

plc with the US Securities and Exchange Commission (the SEC), which is available on the SEC’s website at

www.sec.gov, for a discussion of certain factors and risks. Lloyds Banking Group plc may also make or disclose

written and/or oral forward-looking statements in other written materials and in oral statements made by the

directors, officers or employees of Lloyds Banking Group plc to third parties, including financial analysts. Except as

required by any applicable law or regulation, the forward-looking statements contained in this document are made

as of today’s date, and the Group expressly disclaims any obligation or undertaking to release publicly any updates

or revisions to any forward-looking statements contained in this document whether as a result of new information,

future events or otherwise. The information, statements and opinions contained in this document do not

constitute a public offer under any applicable law or an offer to sell any securities or financial instruments or any

advice or recommendation with respect to such securities or financial instruments.

EXPLANATORY NOTE

This report on Form 6-K contains the interim report of Lloyds Banking Group plc, which includes the unaudited

consolidated interim results for the three months ended 31 March 2025 and is being incorporated by reference into

the Registration Statement with File No. 333-265452.

FINANCIAL REVIEW

Income statement

The Group’s profit before tax for the first three months of 2025 was £1,517 million, 7% lower than the same period

in 2024. This was driven by higher total income more than offset by higher operating expenses and a higher

impairment charge. Profit after tax was £1,134 million and earnings per share was 1.7 pence (three months to 31

March 2024: £1,215 million and 1.7 pence respectively).

Total income for the first three months of 2025 was £4,695 million, an increase of 7% on the same period in 2024

(three months to 31 March 2024: £4,387 million). Net interest income of £3,204 million was up 5% on the prior year

(three months to 31 March 2024: £3,045 million), driven by a higher margin and higher average interest-earning

assets. Other income increased by 11% to £1,491 million (three months to 31 March 2024: £1,342 million). Within

Retail, there was improved performance in UK Motor Finance, with fleet growth and higher average vehicle rental

values, while Insurance, Pensions and Investments benefitted from higher general insurance income net of claims.

Total operating expenses of £2,868 million were 6% higher than in the prior year. This reflects higher costs,

combining inflationary pressures, timing of strategic investment including planned higher severance front-loaded

into the first quarter of 2025 and business growth costs, partly offset by cost savings and continued cost discipline.

This is alongside higher operating lease depreciation, as a result of fleet growth, the depreciation of higher value

vehicles and declines in used electric car prices over 2024.

No net remediation charge was recognised by the Group in the first three months of 2025 (three months to

31 March 2024: £25 million). There have been no further charges relating to motor finance commission

arrangements. The Supreme Court heard the appeal of the Wrench, Johnson and Hopcraft decision in early April

and has stated that it is likely to produce its judgment in July. The FCA has indicated that the decision will inform

its next steps in the discretionary commission arrangements (DCA) review and that it will confirm within six weeks

of the decision if it is proposing a redress scheme and if so, how it will take that forward. The FCA has also noted

that its next steps on non-DCA complaints will be informed by the decision.

The impairment charge was £310 million, up from £56 million in the three months to 31 March 2024. Asset quality

remained resilient in the quarter. The charge included strong portfolio performance in Retail, more than offset by a

higher charge in Commercial Banking, partly due to the non-recurrence of a release from loss rates used in the

model in 2024. The charge also included a £100 million central adjustment to address downside risks to the base

case related to the potential impact from US tariff policies announced at the start of April. These were becoming

apparent around the balance sheet date and were determined to not be fully captured within the modelled

divisional ECL allowances. This is partially offset by benefits to the MES from small increases to house price and

wage growth expectations.

FINANCIAL REVIEW (continued)

Balance sheet

Total assets were £3,200 million higher at £909,897 million at 31 March 2025 (31 December 2024:

£906,697 million).

Financial assets at amortised cost were £2,882 million higher at £534,659 million (31 December 2024:

£531,777 million) with increases in loans and advances to customers. This included growth of £4,807 million in UK

mortgages and growth across UK Retail unsecured loans, credit cards, UK Motor Finance and the European retail

business. Lending balances remained broadly stable in Commercial Banking, with growth in Institutional balances

partly offset by repayments of government-backed lending. The growth in loans and advances to customers was

partly offset by a £1,820 million reduction in reverse repurchase agreements, a £578 million reduction in loans and

advances to banks and a £1,652 million reduction in debt securities.

Cash and balances at central banks were stable at £62,891 million. Financial assets held at fair value through profit

or loss decreased by £475 million, with reduced holdings in the Insurance business as a result of market losses on

equity investments, partly offset by increased holdings in the banking business due to increased reverse repurchase

agreements. Derivative financial assets were £3,355 million lower at £20,710 million (31 December 2024:

£24,065 million), driven by interest rate movements in the period. Financial assets at fair value through other

comprehensive income were stable in the period at £31,027 million. Other assets were £3,625 million higher,

primarily reflecting increased settlement balances.

Total liabilities were £1,288 million higher at £862,097 million (31 December 2024: £860,809 million). Customer

deposits of £487,691 million increased in the period by £4,946 million. Retail deposits increased £2,637 million in

the period, driven by net inflows to limited withdrawal and fixed term deposits alongside higher current account

balances. Commercial Banking deposits were up £2,261 million in the quarter, aided by short term balances.

Financial liabilities at fair value through profit or loss increased by £2,428 million to £30,039 million at 31 March

2025 due to increased repurchase agreements. Derivative financial liabilities decreased by £3,317 million to

£18,359 million as a result of market movements. Liabilities arising from insurance and investment contracts

decreased by £3,332 million reflecting the decrease in policyholder investments. Other liabilities increased by

£3,642 million reflecting increased settlement balances. Debt securities in issue reduced by £3,011 million, with

higher levels of maturities in the period.

Total equity increased to £47,800 million at 31 March 2025 (31 December 2024: £45,888 million). The increase

primarily reflected profit attributable to ordinary shareholders alongside unwind of the cash flow hedge reserve

and issuance of an AT1 capital instrument in February 2025. The Group has commenced the share buyback

announced in February 2025, with c.0.3 billion shares repurchased as at 31 March 2025.

Capital

The Group’s common equity tier 1 (CET1) capital ratio reduced to 13.5% at 31 March 2025 (31 December 2024:

14.2%). Banking business profits for the first three months of the year and the dividend received from the Group’s

Insurance business were more than offset by the recognition of the full impact of the announced ordinary share

buyback in respect of 2024, the accrual for foreseeable ordinary dividends and an increase in risk-weighted assets.

The Group’s total capital ratio reduced to 18.4% at 31 March 2025 (31 December 2024: 19.0%), reflecting the

reduction in CET1 capital, a reduction in tier 2 capital due in part to an instrument call and an increase in risk-

weighted assets, partially offset by the issuance of a new AT1 capital instrument. The MREL ratio reduced to 30.4%

at 31 March 2025 (31 December 2024: 32.2%) reflecting the reduction in total capital resources and the increase in

risk-weighted assets, in addition to a reduction in other eligible liabilities largely reflecting instrument calls, net of

new issuances.

Risk-weighted assets increased by £5,490 million to £230,122 million at 31 March 2025 (31 December 2024:

£224,632 million). This reflects the impact of strong lending growth, but also includes a temporary c.£2.5 billion

increase primarily due to hedging activity that is expected to reverse by the third quarter. The growth in risk-

weighted assets was partly offset by continued optimisation activity and other movements.

The Group’s UK leverage ratio at 31 March 2025 remained at 5.5% (31 December 2024: 5.5%). The increase in the

leverage exposure measure primarily reflects increases across loans and advances and other assets, due in part to

strong lending growth, and an increase in off-balance sheet items.

CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)

1Net finance expense in respect of insurance and investment contracts, previously shown separately, is now included within

other income as part of total income. The comparative period is presented on a consistent basis.

CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

ADDITIONAL FINANCIAL INFORMATION

1.Basis of presentation

This release covers the results of Lloyds Banking Group plc together with its subsidiaries (the Group) for the three

months ended 31 March 2025.

The Group’s Q1 2025 Interim Pillar 3 Disclosures can be found at: www.lloydsbankinggroup.com/investors/

financial-downloads.html.

Accounting policies

The accounting policies are consistent with those applied by the Group in its 2024 Annual Report on Form 20-F.

2.Total ECL allowance by scenario

The following table shows the Group’s ECL for the probability-weighted, upside, base case, downside and severe

downside scenarios, with the severe downside scenario incorporating adjustments made to Consumer Price Index

(CPI) inflation and UK Bank Rate paths. 

1Includes £100 million central adjustment held constant across all scenarios. 

3.Loans and advances to customers and expected credit loss allowance

1Contains central fair value hedge accounting adjustments.

2UK Motor Finance includes £178 million relating to provisions against residual values of vehicles subject to finance leases.

3Other includes a £100 million central adjustment that has not been allocated to specific portfolios.

4.UK economic assumptions

Base case and MES economic assumptions

The Group’s base case scenario is for a slow expansion in gross domestic product (GDP) and a modest rise in the

unemployment rate alongside small gains in residential and commercial property prices. Inflationary pressures

remain persistent, but gradual cuts in UK Bank Rate are expected to continue during 2025. Risks around this base

case economic view lie in both directions and are largely captured by the generation of alternative economic

scenarios.

The Group has taken into account the latest available information at the reporting date in defining its base case

scenario and generating alternative economic scenarios. The scenarios include forecasts for key variables as of the

first quarter of 2025. Actuals for this period, or restatements of past data, may have since emerged prior to

publication and have not been included. The Group’s approach to generating alternative economic scenarios is set

out in detail in note 21 to the financial statements for the year ended 31 December 2024, found in the Group’s

2024 Annual Report on Form 20-F.

The Group had included assumptions for expected tariffs and potential responses in its quarter-end base case

conditioning assumptions prior to announcements at the start of April. Initial non-UK tariffs announced in the first

few days of April and the immediate market response were larger than expected. Accordingly, the Group has

adopted a £100 million central adjustment to reflect the potential ECL impact, informed by high level sensitivity to

key UK economic metrics based on tariff scenarios. Subsequent developments through April were judged to relate

to conditions after the balance sheet date and will be reflected in the second quarter reporting period.

UK economic assumptions – base case scenario by quarter

Key quarterly assumptions made by the Group in the base case scenario are shown below. GDP growth is

presented quarter-on-quarter. House price growth, commercial real estate price growth and CPI inflation are

presented year-on-year, i.e. from the equivalent quarter in the previous year. Unemployment rate and UK Bank

Rate are presented as at the end of each quarter.

4.UK economic assumptions (continued)

UK economic assumptions – scenarios by year

Key annual assumptions made by the Group are shown below. GDP growth and CPI inflation are presented as an

annual change, house price growth and commercial real estate price growth are presented as the growth in the

respective indices within the period. Unemployment rate and UK Bank Rate are averages for the period.

1The adjustment to UK Bank Rate and CPI inflation in the severe downside is considered to better reflect the risks to the

Group’s base case view in an economic environment where the risks of supply and demand shocks are seen as more balanced.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to

be signed on its behalf by the undersigned, thereunto duly authorised.