Segmental analysis (Tables)

12 Months Ended

Dec. 31, 2024

Disclosure of entity's operating segments [Abstract]

Schedule of Operating Segments

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.

Schedule of Reconciliation of Underlying Basis to Statutory Results

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).