Lloyds Banking Group reported a statutory profit after tax of £2.5 billion in the first half of 2025, as income growth and cost savings helped offset rising expenses. Net income increased 6% year-on-year to £8.9 billion, supported by gains in general insurance and SME banking. Operating costs rose by 4% to £4.9 billion, but the group delivered £300 million in gross cost savings during the same period.
The bank lifted its interim dividend by 15% to 1.22 pence per share, maintaining a healthy dividend yield of 4.08%. Capital generation for the half year stood at 86 basis points. Despite the strong earnings, the stock dipped slightly by 0.41%. Lloyds continues to trade with a price-to-earnings ratio of 12.5 and maintains a solid financial profile, with recent analysis suggesting it remains undervalued.
For business customers, the results reinforce Lloyds’ ongoing investment in key segments, including commercial and SME banking. The group has also expanded its share of the business current account market, indicating further emphasis on growing its B2B footprint.
