Segmental analysis

6 Months Ended

Jun. 30, 2024

Note 3: Segmental analysis

Lloyds Banking Group provides a wide range of banking and financial services in the UK and in certain locations

overseas. The Group Executive Committee (GEC) remains the “chief operating decision maker” (as defined by IFRS 8

Operating Segments) for the Group.

The segmental results and comparatives are presented on an underlying basis, the basis reviewed by the chief operating

decision maker. The underlying basis is derived from the recognition and measurement principles of IFRS with the effects

of the following excluded in arriving at underlying profit before tax:

•Restructuring costs relating to merger, acquisition and integration activities

•Volatility and other items, which includes the effects of certain asset sales, the volatility relating to the Group’s hedging

arrangements and that arising in the insurance businesses, the unwind of acquisition-related fair value adjustments

and the amortisation of purchased intangible assets

•Losses from insurance and participating investment contract modifications relating to the enhancement to the Group’s

longstanding and workplace pension business through the addition of a drawdown feature

For the purposes of the underlying income statement, operating lease depreciation (net of gains on disposal of operating

lease assets) is shown as an adjustment to total underlying income.

There has been no change to the descriptions of these segments as provided in note 4 to the Group’s financial

statements for the year ended 31 December 2023.

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED) (continued)

Note 3: Segmental analysis (continued)

The table below analyses the Group’s income and profit by segment on an underlying basis and provides a reconciliation

through to certain lines in the Group’s statutory income statement. Total income, after net finance income in respect of

insurance and investment contracts is also analysed between external and inter-segment income.


Half-year to 30 June 2024	Net interest income £m	Other income, after net finance expense1 £m	Total income, after net finance expense1,2 £m	Profit before tax £m	External income £m	Inter- segment income (expense) £m

Underlying basis
Retail	4,430	1,148	5,578	1,875	6,566	(988)
Commercial Banking	1,696	947	2,643	1,329	2,088	555
Insurance, Pensions and Investments	(74)	649	575	119	649	(74)
Other	286	(10)	276	174	(231)	507
Group	6,338	2,734	9,072	3,497	9,072	–
Reconciling items:
Insurance grossing adjustment	8	(112)	(104)	–
Market volatility and asset sales	(273)	208	(65)	(65)
Amortisation of purchased intangibles	–	–	–	(41)
Restructuring costs3	–	–	–	(15)
Fair value unwind and other items	(27)	–	(27)	(52)
Group – statutory	6,046	2,830	8,876	3,324


Half-year to 30 June 2023	Net interest income £m	Other income, after net finance expense1 £m	Total income, after net finance expense1,2 £m	Profit before tax £m	External income £m	Inter- segment income (expense) £m

Underlying basis
Retail	5,064	1,006	6,070	2,505	6,429	(359)
Commercial Banking	1,934	856	2,790	1,417	2,296	494
Insurance, Pensions and Investments	(70)	619	549	91	621	(72)
Other	76	57	133	28	196	(63)
Group	7,004	2,538	9,542	4,041	9,542	–
Reconciling items:
Insurance grossing adjustment	7	(139)	(132)	–
Market volatility and asset sales	(183)	117	(66)	(63)
Amortisation of purchased intangibles	–	–	–	(35)
Restructuring costs3	–	–	–	(25)
Fair value unwind and other items	(30)	(8)	(38)	(48)
Group – statutory	6,798	2,508	9,306	3,870

1Other income and total income, after net finance expense in respect of insurance and investment contracts.

2Total income, after net finance expense does not include operating lease depreciation which, on a statutory basis, is included within

operating costs.

3Restructuring costs related to merger, acquisition and integration costs.