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Lloyds Banking Group financial performance and outlook

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2026-09-25 21:16 UTC → 2026-10-21 00:13 UTC · added ~~removed~~

Lloyds Banking Group reported a half-year profit of £4.3bn for the period ending June 30, driven by a 9% increase in underlying net interest income to £7.3bn. Following these results, the bank raised its interim dividend by 30% to 1.58p per share and initiated a £1bn share buyback programme. ~~Following these financial developments, financial~~ Financial analysts have expressed increased optimism, with institutions such as UBS, Morgan Stanley, and Bank of America Securities raising their price ~~targets for the bank.~~ targets. While Lloyds shows a lower trailing dividend yield than HSBC, it is projected to have stronger dividend growth over the next two years. More recent financial reporting shows statutory profit before tax reached £6.7 billion, up from £6.0 billion in the previous year, while underlying net interest income grew by 6% to £13.6 billion. This growth has coincided with a substantial share price rally, yielding an approximate two-year return of 93.1% from late August 2024 levels. Regarding shareholder returns, the board has recommended a total ordinary dividend of 3.65 pence per share for 2025, a 15% increase, alongside a share buyback programme of up to £1.75 billion. For 2026, management is targeting underlying net interest income of approximately £14.9 billion and a return on tangible equity of greater than 16%. Additionally, insider activity was noted on September 23rd, when Catherine Woods acquired 1,810 shares at an average price of GBX 110 per share. Recent developments highlight a 12% rise in full-year statutory pre-tax profits for 2025 to £6.66bn. Despite a motor finance mis-selling scandal necessitating a £2bn compensation set-aside, first-half statutory pre-tax profits rose 23% to £4.3bn. The bank is also undertaking a £13bn digital transformation in technology and artificial intelligence, aimed at generating £2bn in savings by 2030.

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