Lloyds Banking Group Posts £1.99 Billion Q2 Profit, Raises Dividend to 1.22p, Returns £731 Million to Shareholders

Lloyds Banking Group reported a statutory pre-tax profit of £1.99 billion for the second quarter of 2025, surpassing the Bloomberg consensus estimate of £1.75 billion and marking a 17% increase year-over-year. The bank's net interest margin slightly missed expectations at 3.04% compared to an estimated 3.05%. Operating costs were £2.32 billion, marginally below the forecast of £2.34 billion. Lloyds declared an interim dividend of 1.22 pence per share, representing a 15% increase, and announced it would return approximately £731 million ($1 billion) to shareholders. The bank maintained its 2025 and 2026 financial outlook despite a dimming economic environment. Additionally, Lloyds confirmed there would be no further charges related to its motor finance business. The strong earnings performance was attributed to continued benefits from higher interest rates.