Bank of Scotland plc, owned by Lloyds Banking Group, has reported profit before tax for the first half of 2025 of £680 million, up from £427 million for the same period in 2024.

This was driven by higher total income, partially offset by higher operating expenses and a higher impairment charge. 

Customer deposits rose £2.580 billion in the six months to £167.633 billion.

Total income for the half-year was £2.634 billion, an increase of 29% on the first half of 2024.

Net interest income was £2.281 billion, compared to £1.833 billion for the same period in 2024, driven by higher average interest-earning assets and a higher margin.

“Other income of £353 million was £147 million higher than the first half of 2024,” said the bank.

“The increase reflected higher net trading income of £114 million which was £62 million higher than the first half of 2024, reflecting rate movements.

“This was alongside higher net fee and commission income of £177 million which was £79 million higher than the same period in 2024 which was impacted by changes to commission arrangements with Scottish Widows.”

Operating expenses of £1.894 million were 18% higher than in the first half of 2024 “reflecting inflationary pressures, 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.”

Total assets of £338.088 billion were £7.004 billion higher, or 2%, compared to £331.084 billion at December 31, 2024. Financial assets at amortised cost were £9.344 billion higher at £328.550 billion compared to £319.206 billion at December 31, 2024, with increases in loans and advances to customers of £6.726 billion to £307.515 billion.

“The increase in loans advances to customers was primarily due to growth in UK mortgages,” said the bank.

There were also increases in balances due from fellow Lloyds Banking Group undertakings of £2.729 billion in the period.

Total liabilities of £321.715 billion increased £6.861 billion compared to £314.854 billion at December 31, 2024.

This was driven by an increase in customer deposits of £2.580 billion in the period, driven by a strong performance throughout the ISA season, as well as increases in balances due to fellow Lloyds Banking Group undertakings of £3.233 billion.

“Total equity increased by £143 million from £16,230 million at 31 December 2024 to £16,373 million at 30 June 2025. The movement reflected attributable profit for the period, partially offset by an interim dividend of £250 million.”

Bank of Scotland’s common equity tier 1 (CET1) capital ratio reduced from 13.5% at December 31, 2024, to 13.3% at June 30, 2025.

“The profits for the period were more than offset by the accrual for the foreseeable ordinary dividend and an increase in risk-weighted assets,” said the bank.

“The total capital ratio decreased to 18.5% (31 December 2024: 18.9%) reflecting the increase in risk-weighted assets and the reduction in total capital, including the reduction in eligible provisions recognised through tier 2.

“Risk-weighted assets increased by £337 million from £81,493 million at 31 December 2024 to £81,830 million at 30 June 2025, largely reflecting impact of lending growth.

“The Bank’s UK leverage ratio of 4.3% at 30 June 2025 has decreased from 4.4% at 31 December 2024, reflecting the reduction in total tier 1 capital and an increase in the exposure measure. The increase in the leverage exposure measure reflects lending growth in the balance sheet.”