Lloyds Banking Group (LBG) — which owns Bank of Scotland, Scottish Widows and Halifax — said its 2025 profit before tax rose 12% to £6.7 billion “benefitting from higher total income, partially offset by higher operating expenses and a higher impairment charge.”

The group announced total shareholder distributions of £3.9 billion for the year. 

Return on tangible equity was 12.9%, or 14.8% “excluding a charge for motor finance commission arrangements in the third quarter.” 

LBG reported underlying net interest income of £13.6 billion, up 6% on 2024.

“The board has recommended a final ordinary dividend of 2.43 pence per share, resulting in a total ordinary dividend for 2025 of 3.65 pence per share, up 15% on the prior year and in line with the group’s progressive and sustainable ordinary dividend policy,” said LBG.

“Given the group’s strong capital position, the board has also announced its intention to implement an ordinary share buyback programme of up to £1.75 billion. Going forward, the group will now review excess capital distributions in addition to the ordinary dividend every half year.”

LBG CEO Charlie Nunn said: “The group demonstrated sustained strength in financial performance in 2025, including in the final quarter, with continued balance sheet and income growth, as well as strong cost discipline and credit performance.

“This performance enables total shareholder distributions of c.£3.9 billion for the year. 

“Looking ahead to 2026 and the culmination of the five year strategy we set out in 2022, our continued business momentum and strategic delivery enable us to upgrade guidance.

“The sustained strength in performance means we are well positioned for 2026 and beyond. Having entered this year on a positive trajectory, I look forward to sharing more detail on the next stage of the Group’s strategy, beyond the current plan, in July.”