Lloyds Bank profits surge as mortgage lending and savings balances jump | Personal Finance | Finance

Lloyds Banking Group has reported a higher-than-expected profit for the first half of 2025, boosted by an increase in lending and savings balances. The group, which includes Lloyds Bank, Halifax and Bank of Scotland, announced a pre-tax profit of £3.5 billion for the first six months of the year – a 5% rise compared to the same period last year.

This surpassed the £3.2billion that analysts had predicted. Lloyds revealed that total customer lending rose by £11.9 billion over the period, or 3%, fuelled by UK mortgages, with approximately 33,000 first-time buyers securing a home loan. Customer deposits also increased by £11.2 billion, or 2%, following a robust season for ISAs, while more individuals transferred money from current accounts into savings.

Lloyds plans to issue an interim dividend of 1.22p, equivalent to £731million, which marks a 15% increase from last year.

In addition, Lloyds confirmed there had been no alteration to its motor finance provision, having earmarked £1.2 billion to cover potential costs and compensation related to commission arrangements.

The group’s exposure to the motor finance market comes through its Black Horse business.

Charlie Nunn, the group’s chief executive, said: “We continue to make great progress in our purpose-driven strategy, building differentiated customer outcomes and delivering growth across our business as we build towards our ambitious targets for 2026.”

Garry White, chief investment commentator at Charles Stanley, said the banking group’s second-quarter results “paint a picture of resilience”, despite revenue coming in modestly below expectations.

He said: “The net interest margin (NIM) was up quarter on quarter, in line with expectations. Stresses are rising in unsecured lending, and there are signs of strain in parts of its mortgage book, but they were able to lighten their provisions for bad loans, which helped reported profits.

“Chief executive Charlie Nunn was upbeat as he commented that ‘operational discipline’ and ‘tech-driven efficiencies’ will offset any economic storms. He reaffirmed full-year guidance and expressed confidence in delivering £1.5billion in additional income by 2026. The second half of the year could get more difficult, but right now it seems Lloyds is holding on a steady course.”