Lloyds Banking Group plc (LYG)

Lloyds Banking Group does retail and commercial banking and long-term savings, protection and investment, operating primarily in the UK. Services go out under a number of brands including Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows, and the filing describes the distribution as including the largest branch network and digital bank in the UK. The holding company was incorporated as a public limited company and registered in Scotland under the UK Companies Act 1985 on 21 October 1985, with its registered office at The Mound in Edinburgh and its principal executive offices at 33 Old Broad Street in London. It had 60,061 employees on a full-time equivalent basis at the end of 2025, and the figures are stated in pounds.

Where it came from

The group's origins date back to the 18th century with Taylors and Lloyds in Birmingham. Lloyds Bank plc was incorporated in 1865 and grew through mergers and acquisitions, taking the Cheltenham and Gloucester Building Society in 1995. TSB Group plc was formed in 1986 out of four Trustee Savings Banks and had expanded into insurance, investment management and vehicle leasing by 1995, when it merged with Lloyds Bank to form Lloyds TSB Group. Lloyds TSB acquired Scottish Widows in 2000, which the filing says strengthened its position in long-term savings and protection.

The HBOS acquisition

HBOS Group was created in 2001 by merging Halifax plc and Bank of Scotland. On 18 September 2008 Lloyds TSB Group agreed to acquire HBOS plc, completed the acquisition on 16 January 2009 and renamed itself Lloyds Banking Group plc.

Three divisions

At the end of 2025 there were three primary operating divisions, which are also the financial reporting segments: Retail, Commercial Banking, and Insurance, Pensions and Investments. The segments are split by the type of product provided and by whether the customers are individuals or corporate entities. The Group Executive Committee is the chief operating decision maker and reviews internal reporting around those segments to assess performance and allocate resources, on what the group calls an underlying basis. That aggregate underlying profit is a non-GAAP measure, and profit before tax is the comparable GAAP measure.

The balance sheet's shape

Average interest-earning assets of the banking book were £641,719 million in 2025 at an average yield of 4.79%, against £625,014 million at 5.01% in 2024. The largest single line is loans and advances to customers, averaging £473,647 million at 5.02%, up from £456,763 million. Loans and advances to banks averaged £70,780 million at 3.75%, reverse repurchase agreements £49,058 million at 4.76% and debt securities £13,712 million at 4.80%. On the other side, customer deposits averaged £376,795 million at 2.46%, against £356,294 million at 2.84% a year earlier. Capital ratios at the end of 2025 were 14.0% common equity tier 1, 16.2% tier 1 and 18.9% total capital.

Regulation and the US

The group is supervised by the Financial Conduct Authority and the Prudential Regulation Authority, and its structure carries ring-fencing governance arrangements separating the ring-fenced bank from the rest. Lloyds Bank Corporate Markets plc maintains a branch in the US and Lloyds Bank maintains a representative office there. An additional entity for Scottish Widows Europe sits in Luxembourg under its own regulator.

From Lloyds Banking Group's annual report on Form 20-F for the year ended 31 December 2025. The filing