XML 363 R19.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segmental analysis
 12 Months Ended
Dec. 31, 2024
Disclosure of entity's operating segments [Abstract]  
Segmental analysis Note 4: 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) has been determined to be the chief operating decision-maker, as defined by IFRS 8 Operating
Segments, for the Group. The Group’s operating segments reflect its organisational and management structures. The GEC reviews the
Group’s internal reporting based around these segments in order to assess performance and allocate resources. It considers interest income
and expense on a net basis and consequently the total interest income and expense for all reportable segments is presented net. The
segments are differentiated by the type of products provided and by whether the customers are individuals or corporate entities.
The segmental results and comparatives are presented on an underlying basis (pre-tax), the basis reviewed by the chief operating decision-
maker. The underlying basis is derived from the recognition and measurement principles of the IFRS Accounting Standards with the effects
of the following excluded in arriving at underlying profit:
•Restructuring costs relating to merger, acquisition, integration and disposal 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 income.
The Group has three operating and reportable segments: Retail; Commercial Banking; and Insurance, Pensions and Investments:
•Retail offers a broad range of financial services products to personal customers, including current accounts, savings, mortgages, credit
cards, unsecured loans, motor finance and leasing solutions. Its aim is to build enduring relationships that meet more of its customers’
financial needs and improves their financial resilience throughout their lifetime
•Commercial Banking serves small and medium businesses and corporate and institutional clients, providing lending, transactional
banking, working capital management, debt financing and risk management services whilst connecting the whole Group to clients
•Insurance, Pensions and Investments offers insurance, investment and pension management products and services
Other comprises income and expenditure not attributed to the Group’s operating segments. These amounts include those arising from the
Group’s equities business, residual net interest income after transfer pricing (which includes the central recovery of the Group’s
distributions on other equity instruments), in period gains from gilt sales and the unwind of associated hedging costs.
Inter-segment services are generally recharged at cost, although some attract a margin. Inter-segment lending and deposits are generally
entered into at market rates, except that non-interest bearing balances are priced at a rate that reflects the external yield that could be
earned on such funds.
For the majority of those derivative contracts entered into by business units for risk management purposes, the business unit recognises the
net interest income or expense on an accrual accounting basis and transfers the remainder of the movement in the fair value of the
derivative to the central function where the resulting accounting volatility is managed where possible through the establishment of hedge
accounting relationships. Any change in fair value of the hedged instrument attributable to the hedged risk is also recorded within the
central function. This allocation of the fair value of the derivative and change in fair value of the hedged instrument attributable to the
hedged risk avoids accounting asymmetry in segmental results and leads to accounting volatility, which is managed centrally and reported
within Other.
Note 4: Segmental analysis continued
Year ended 31 December 2024
Retail
£m
Commercial
Banking
£m
Insurance,
Pensions and
Investments
£m
Other
£m
Total
£m
Underlying net interest income
8,930
3,434
(136)
617
12,845
Underlying other income
2,384
1,825
1,292
96
5,597
Total underlying income, net of net finance income in respect of insurance
and investment contracts
11,314
5,259
1,156
713
18,442
Operating lease depreciation1
(1,319)
(6)
–
–
(1,325)
Net income
9,995
5,253
1,156
713
17,117
Operating costs
(5,596)
(2,762)
(924)
(160)
(9,442)
Remediation
(750)
(104)
(19)
(26)
(899)
Total costs
(6,346)
(2,866)
(943)
(186)
(10,341)
Underlying impairment (charge) credit
(457)
14
7
3
(433)
Underlying profit before tax
3,192
2,401
220
530
6,343
External income
13,596
3,991
1,292
(437)
18,442
External operating lease depreciation1
(1,319)
(6)
–
–
(1,325)
Inter-segment (expense) income
(2,282)
1,268
(136)
1,150
–
Net income
9,995
5,253
1,156
713
17,117
Loans and advances to customers2
372,250
87,602
–
5
459,857
External assets3
387,322
148,548
197,309
173,518
906,697
Customer deposits
319,726
162,645
–
374
482,745
External liabilities3
324,730
207,066
193,519
135,494
860,809
Analysis of underlying other income:
Consumer lending
1,810
1,810
Consumer relationships
574
574
Business and Commercial Banking
539
539
Corporate and Institutional Banking
1,286
1,286
Life, Pensions and Investments
979
979
General insurance
229
229
Venture capital
457
457
Other
84
(361)
(277)
Underlying other income
2,384
1,825
1,292
96
5,597
Other items reflected in income statement above:
Depreciation and amortisation
2,303
338
229
556
3,426
Defined benefit scheme charge (credit)
7
2
3
(23)
(11)
Non-income statement items:
Additions to fixed assets
3,485
107
75
1,956
5,623
Investments in joint ventures and associates at end of year
–
–
–
542
542
1Net of profits on disposal of operating lease assets of £59 million.
2Other includes centralised fair value hedge accounting adjustments.
3The Insurance, Pensions and Investments operating segment external assets includes £5,122 million included in disposal group assets and external liabilities includes £5,268 million in
disposal group liabilities. Further details are provided in note 24 and note 27.
Note 4: Segmental analysis continued
Year ended 31 December 2023
Retail
£m
Commercial
Banking
£m
Insurance,
Pensions and
Investments
£m
Other
£m
Total
£m
Underlying net interest income
9,647
3,799
(132)
451
13,765
Underlying other income
2,159
1,691
1,209
64
5,123
Total underlying income, net of net finance income in respect of insurance
and investment contracts
11,806
5,490
1,077
515
18,888
Operating lease depreciation1
(948)
(8)
–
–
(956)
Net income
10,858
5,482
1,077
515
17,932
Operating costs
(5,469)
(2,647)
(880)
(144)
(9,140)
Remediation
(515)
(127)
(14)
(19)
(675)
Total costs
(5,984)
(2,774)
(894)
(163)
(9,815)
Underlying impairment (charge) credit
(831)
511
7
5
(308)
Underlying profit before tax
4,043
3,219
190
357
7,809
External income
12,803
4,570
1,221
294
18,888
External operating lease depreciation1
(948)
(8)
–
–
(956)
Inter-segment (expense) income
(997)
920
(144)
221
–
Net income
10,858
5,482
1,077
515
17,932
Loans and advances to customers2
361,181
88,606
–
(42)
449,745
External assets
376,789
150,834
184,267
169,563
881,453
Customer deposits
308,441
162,752
–
203
471,396
External liabilities
313,244
204,815
179,962
136,067
834,088
Analysis of underlying other income:3
Consumer lending
1,553
1,553
Consumer relationships
606
606
Business and Commercial Banking
514
514
Corporate and Institutional Banking
1,177
1,177
Life, Pensions and Investments
966
966
General insurance
171
171
Venture capital
448
448
Other
72
(384)
(312)
Underlying other income
2,159
1,691
1,209
64
5,123
Other items reflected in income statement above:
Depreciation and amortisation
1,927
410
201
367
2,905
Defined benefit scheme charge (credit)
53
21
6
(159)
(79)
Non-income statement items:
Additions to fixed assets
3,294
88
80
1,993
5,455
Investments in joint ventures and associates at end of year
–
–
–
401
401
1Net of profits on disposal of operating lease assets of £93 million.
2Other includes centralised fair value hedge accounting adjustments.
3Categories of analysis have been updated for 2024. Comparatives have been updated accordingly.
Note 4: Segmental analysis continued
Year ended 31 December 2022
Retail
£m
Commercial
Banking
£m
Insurance,
Pensions and
Investments
£m
Other
£m
Total
£m
Underlying net interest income
9,774
3,447
(101)
52
13,172
Underlying other income
1,731
1,565
960
410
4,666
Total underlying income, net of net finance income in respect of insurance
and investment contracts
11,505
5,012
859
462
17,838
Operating lease depreciation1
(368)
(5)
–
–
(373)
Net income
11,137
5,007
859
462
17,465
Operating costs
(5,175)
(2,496)
(879)
(122)
(8,672)
Remediation
(92)
(133)
(30)
–
(255)
Total costs
(5,267)
(2,629)
(909)
(122)
(8,927)
Underlying impairment (charge) credit
(1,373)
(517)
(12)
392
(1,510)
Underlying profit (loss) before tax
4,497
1,861
(62)
732
7,028
External income
12,055
4,330
910
543
17,838
External operating lease depreciation1
(368)
(5)
–
–
(373)
Inter-segment (expense) income
(550)
682
(51)
(81)
–
Net income
11,137
5,007
859
462
17,465
Loans and advances to customers2
364,194
93,675
–
(2,970)
454,899
External assets
372,485
147,477
170,777
182,655
873,394
Customer deposits
310,765
163,828
–
738
475,331
External liabilities
314,091
202,070
168,357
144,965
829,483
Analysis of underlying other income:3
Consumer lending
1,176
1,176
Consumer relationships
555
555
Business and Commercial Banking
555
555
Corporate and Institutional Banking
1,010
1,010
Life, Pensions and Investments
773
773
General insurance
114
114
Venture capital
469
469
Other
73
(59)
14
Underlying other income
1,731
1,565
960
410
4,666
Other items reflected in income statement above:
Depreciation and amortisation
1,216
207
142
831
2,396
Defined benefit scheme charge
72
28
7
18
125
Non-income statement items:
Additions to fixed assets
2,146
101
151
1,457
3,855
Investments in joint ventures and associates at end of year
4
–
–
381
385
1Net of profits on disposal of operating lease assets of £197 million.
2Other includes centralised fair value hedge accounting adjustments.
3Categories of analysis have been updated for 2024. Comparatives have been updated accordingly.
Geographical areas
The Group’s operations are predominantly UK-based and as a result an analysis between UK and non-UK activities is not provided.
Note 4: Segmental analysis continued
Reconciliation of underlying basis to statutory basis
The underlying basis is the basis on which financial information is presented to the chief operating decision-maker which excludes certain
items included in the statutory results. The table below reconciles the statutory results to the underlying basis.
Removal of:
Year ended 31 December 2024
Lloyds
Banking Group
statutory basis
£m
Volatility,
and other
items1
£m
Insurance
gross up2
£m
Underlying
basis
£m
Net interest income
12,277
578
(10)
12,845
Underlying net interest income
Other income, net of net finance income in respect
of insurance and investment contracts
5,726
(375)
246
5,597
Underlying other income
Total income, net of net finance income in respect
of insurance and investment contracts
18,003
(1,325)
–
(1,325)
Operating lease depreciation3
Total income, net of net finance income in respect
of insurance and investment contracts
18,003
(1,122)
236
17,117
Net income
Operating expenses
(11,601)
1,496
(236)
(10,341)
Total costs
Impairment charge
(431)
(2)
–
(433)
Underlying impairment charge
Profit before tax
5,971
372
–
6,343
Underlying profit
Removal of:
Year ended 31 December 2023
Lloyds
Banking Group
statutory basis
£m
Volatility,
and other
items4
£m
Insurance
gross up2
£m
Underlying
basis
£m
Net interest income
13,298
479
(12)
13,765
Underlying net interest income
Other income, net of net finance income in respect
of insurance and investment contracts
5,331
(447)
239
5,123
Underlying other income
Total income, net of net finance income in respect
of insurance and investment contracts
18,629
(956)
–
(956)
Operating lease depreciation3
Total income, net of net finance income in respect
of insurance and investment contracts
18,629
(924)
227
17,932
Net income
Operating expenses
(10,823)
1,235
(227)
(9,815)
Total costs
Impairment charge
(303)
(5)
–
(308)
Underlying impairment charge
Profit before tax
7,503
306
–
7,809
Underlying profit
Removal of:
Year ended 31 December 2022
Lloyds
Banking Group
statutory basis
£m
Volatility,
and other
items5
£m
Insurance
gross up2
£m
Underlying
basis
£m
Net interest income
12,922
226
24
13,172
Underlying net interest income
Other income, net of net finance income in respect
of insurance and investment contracts
2,619
1,846
201
4,666
Underlying other income
Total income, net of net finance income in respect
of insurance and investment contracts
15,541
(373)
–
(373)
Operating lease depreciation3
Total income, net of net finance income in respect
of insurance and investment contracts
15,541
1,699
225
17,465
Net income
Operating expenses
(9,237)
535
(225)
(8,927)
Total costs
Impairment charge
(1,522)
12
–
(1,510)
Underlying impairment charge
Profit before tax
4,782
2,246
–
7,028
Underlying profit
1In the year ended 31 December 2024 this comprises the effects of market volatility and asset sales (losses of £144 million); the amortisation of purchased intangibles (£81 million);
restructuring (£40 million of merger, acquisition and integration costs); and the fair value unwind (losses of £107 million).
2The Group’s Insurance business statutory income statement includes income and expenses attributable to the policyholders of the Group’s long-term assurance funds, investors in the
Group's non-participating investment contracts and third party interests in consolidated funds. These items have no impact in total upon the profit attributable to equity shareholders
and, in order to provide an alternative representation of the underlying trends within the business, these items are shown net within the underlying results.
3Net of profits on disposal of operating lease assets of £59 million (2023: £93 million; 2022: £197 million). Statutory operating expenses includes operating lease depreciation. On an
underlying basis operating lease depreciation is included in net income.
4Comprises the effects of market volatility and asset sales (gain of £35 million); the amortisation of purchased intangibles (£80 million); restructuring (£154 million of merger, acquisition
and integration costs); and the fair value unwind (losses of £107 million).
5Comprises the effects of market volatility and asset sales (losses of £1,978 million); the amortisation of purchased intangibles (£70 million); restructuring (£80 million of merger,
acquisition and integration costs); and the fair value unwind (losses of £118 million).