Revenue performance remains highly unstable, with net interest income plummeting to $3.5 billion in 2025Q4 while the efficiency ratio reached a concerning 96.1%.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Net Interest Income | 12.94B | 12.28B | 13.3B | 12.92B | 10.87B | 10.75B | 10.18B | 13.4B | 10.91B | 9.27B | 11.32B | 10.66B | 7.34B | 7.72B | 12.7B | 12.55B | 9.03B | 7.72B | 6.1B | 5.33B | 5.44B | 5.11B | 5.25B | 5.17B | 4.93B | 5.72B | 4.8B | 4.42B | 0 | 0 |
| NII Growth % | 5.4% | -7.68% | 2.91% | 18.86% | 1.14% | 5.59% | -24.01% | 22.76% | 17.66% | -18.06% | 6.17% | 45.27% | -4.92% | -39.22% | 1.21% | 39% | 16.95% | 26.55% | 14.45% | -2.09% | 6.52% | -2.64% | 1.45% | 4.89% | -13.72% | 19.08% | 8.72% | - | - | - |
| Net Interest Margin % | 1.37% | 1.35% | 1.51% | 1.48% | 1.23% | 1.23% | 1.22% | 1.68% | 1.34% | 1.13% | 1.4% | 1.25% | 0.87% | 0.83% | 1.3% | 1.26% | 0.88% | 1.77% | 1.73% | 1.55% | 1.76% | 1.8% | 2.08% | 2.05% | 1.99% | 2.53% | 1.61% | 1.53% | 0% | 0% |
| Interest Income | 30.08B | 31.29B | 28.05B | 17.64B | 13.26B | 14.31B | 16.86B | 16.35B | 16.01B | 16.62B | 17.61B | 19.21B | 21.16B | 23.55B | 26.32B | 29.34B | 28.24B | 17.57B | 16.87B | 14.11B | 12.36B | 10.71B | 10.14B | 10.55B | 11.39B | 12.77B | 10.51B | 11.31B | 0 | 0 |
| Interest Expense | 17.14B | 19.01B | 14.75B | 4.72B | 2.39B | 3.56B | 6.68B | 2.95B | 5.09B | 7.35B | 6.3B | 8.55B | 13.82B | 15.83B | 13.62B | 16.79B | 19.21B | 9.85B | 10.78B | 8.78B | 6.92B | 5.6B | 4.89B | 5.38B | 6.46B | 7.05B | 5.71B | 6.89B | 0 | 0 |
| Loan Loss Provision | 28.44B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 34.93B | 6.33B | 5.9B | 3.13B | 5.45B | 4.38B | 7.93B | 5.24B | 7.71B | 7.76B | 6.04B | 5.63B | 11.08B | 12.74B | 7.94B | 12.25B | 13.4B | 1.86B | 4.53B | 5.78B | 5.1B | 4.55B | 5.37B | 4.66B | 4.61B | 4.59B | -1.14B | -1.23B | 0 | 0 |
| Non-Interest Income % | 53.73% | 16.82% | 17.38% | 15.06% | 29.14% | 23.46% | 31.99% | 24.25% | 32.51% | 31.84% | 25.52% | 22.68% | 34.37% | 35.1% | 23.19% | 29.45% | 32.19% | 9.59% | 21.15% | 29.04% | 29.2% | 29.83% | 34.62% | 30.62% | 28.81% | 26.45% | -12.19% | -12.16% | - | - |
| Total Revenue | 65B | 37.61B | 33.95B | 20.77B | 18.71B | 18.69B | 24.79B | 21.58B | 23.71B | 24.38B | 23.65B | 24.85B | 32.24B | 36.29B | 34.26B | 41.59B | 41.64B | 19.43B | 21.4B | 19.88B | 17.46B | 15.26B | 15.5B | 15.21B | 16B | 17.36B | 9.37B | 10.08B | 0 | 0 |
| Revenue Growth % | 72.81% | 10.79% | 63.44% | 11.03% | 0.11% | -24.61% | 14.86% | -8.99% | -2.74% | 3.09% | -4.81% | -22.95% | -11.14% | 5.91% | -17.62% | -0.13% | 114.29% | -9.2% | 7.63% | 13.89% | 14.42% | -1.59% | 1.92% | -4.91% | -7.86% | 85.26% | -7.04% | - | - | - |
| Non-Interest Expense | 12.76B | 12.63B | 11.7B | 11.27B | 9.42B | 13.91B | 13.72B | 12.67B | 13B | 13.15B | 15.71B | 14.53B | 18B | 21.06B | 24.39B | 24.51B | 21.39B | 8.82B | 6.63B | 6.86B | 6.72B | 6.18B | 6.34B | 7.27B | 6.42B | 7.69B | 38M | 175M | 502M | 487M |
| Efficiency Ratio | 19.63% | 33.58% | 34.45% | 54.24% | 50.36% | 74.41% | 55.33% | 58.71% | 54.8% | 53.93% | 66.42% | 58.49% | 55.84% | 58.04% | 71.2% | 58.94% | 51.36% | 45.39% | 30.97% | 34.48% | 38.49% | 40.53% | 40.91% | 47.82% | 40.16% | 44.26% | 0.41% | 1.74% | - | - |
| Operating Income | 6.66B | 5.97B | 7.5B | 4.78B | 6.9B | 1.23B | 4.39B | 5.96B | 5.63B | 3.89B | 1.64B | 1.76B | 415M | -606M | -3.75B | 281M | 1.04B | 760M | 4B | 4.25B | 3.82B | 3.48B | 4.27B | 2.56B | 3.12B | 2.62B | 3.62B | 3.02B | 3.15B | 2.36B |
| Operating Margin % | 10.25% | 15.87% | 22.1% | 23.02% | 36.89% | 6.56% | 17.72% | 27.61% | 23.72% | 15.95% | 6.95% | 7.09% | 1.29% | -1.67% | -10.95% | 0.68% | 2.5% | 3.91% | 18.69% | 21.36% | 21.88% | 22.79% | 27.56% | 16.81% | 19.48% | 15.11% | 38.64% | 29.9% | - | - |
| Operating Income Growth % | 11.56% | -20.42% | 56.9% | -30.72% | 462.97% | -72.09% | -26.29% | 5.96% | 44.68% | 136.5% | -6.7% | 324.58% | 168.48% | 83.84% | -1434.88% | -73.03% | 37.11% | -81% | -5.86% | 11.2% | 9.86% | -18.64% | 67.11% | -17.96% | 18.79% | -27.54% | 20.1% | -4.22% | 33.33% | 33.24% |
| Pretax Income | 6.66B | 5.97B | 7.5B | 4.78B | 6.9B | 1.23B | 4.39B | 5.96B | 5.63B | 3.89B | 1.64B | 1.76B | 415M | -606M | -3.75B | 281M | 1.04B | 760M | 4B | 4.25B | 3.82B | 3.48B | 4.27B | 2.56B | 3.12B | 2.62B | 3.62B | 3.02B | 3.16B | 2.5B |
| Pretax Margin % | 10.25% | 15.87% | 22.1% | 23.02% | 36.89% | 6.56% | 17.72% | 27.61% | 23.72% | 15.95% | 6.95% | 7.09% | 1.29% | -1.67% | -10.95% | 0.68% | 2.5% | 3.91% | 18.69% | 21.36% | 21.88% | 22.79% | 27.56% | 16.81% | 19.48% | 15.11% | 38.64% | 29.9% | - | - |
| Income Tax | 1.9B | 1.49B | 1.99B | 859M | 1.02B | -161M | 1.39B | 1.45B | 1.63B | 1.72B | 688M | 263M | 1.22B | 781M | -861M | 539M | -1.91B | -38M | 679M | 1.34B | 1.26B | 1.02B | 1.02B | 766.13M | 878.87M | 692.95M | 1.1B | 882M | 813M | 786M |
| Effective Tax Rate % | 28.58% | 25.02% | 26.46% | 17.96% | 14.73% | -13.13% | 31.57% | 24.4% | 28.91% | 44.34% | 41.85% | 14.93% | 293.25% | -128.88% | 22.95% | 191.81% | -183.4% | -5% | 16.98% | 31.57% | 33.12% | 29.28% | 23.95% | 29.96% | 28.2% | 26.41% | 30.41% | 29.25% | 25.71% | 31.38% |
| Net Income | 4.66B | 4.42B | 5.46B | 3.83B | 5.78B | 1.32B | 2.92B | 4.41B | 3.91B | 2.06B | 860M | 1.41B | -838M | -1.47B | -2.96B | -320M | 2.83B | 772M | 3.29B | 2.8B | 2.49B | 2.39B | 3.25B | 1.79B | 2.24B | 1.93B | 2.52B | 2.13B | 2.33B | 1.57B |
| Net Margin % | 7.17% | 11.75% | 16.08% | 18.42% | 30.91% | 7.05% | 11.8% | 20.42% | 16.48% | 8.46% | 3.64% | 5.68% | -2.6% | -4.05% | -8.65% | -0.77% | 6.79% | 3.97% | 15.36% | 14.1% | 14.28% | 15.68% | 20.96% | 11.77% | 13.99% | 11.12% | 26.89% | 21.16% | - | - |
| Net Income Growth % | 5.38% | -19.03% | 42.67% | -33.83% | 338.85% | -54.94% | -33.64% | 12.77% | 89.48% | 139.88% | -39.09% | 268.5% | 43.03% | 50.35% | -825.94% | -111.32% | 266.19% | -76.52% | 17.3% | 12.43% | 4.22% | -26.39% | 81.43% | -19.97% | 15.91% | -23.38% | 18.14% | -8.65% | 48.25% | 39.38% |
| Net Income (Continuing) | 4.76B | 4.48B | 5.52B | 3.92B | 5.88B | 1.39B | 3.01B | 4.51B | 4B | 2.16B | 956M | 1.5B | -802M | -1.39B | -2.89B | -258M | 2.95B | 798M | 3.32B | 2.91B | 2.56B | 2.46B | 3.25B | 1.79B | 2.24B | 1.93B | 2.53B | 2.15B | 2.33B | 1.57B |
| EPS (Diluted) | 0.27 | 0.25 | 0.30 | 0.20 | 0.30 | 0.05 | 0.14 | 0.22 | 0.17 | 0.12 | 0.03 | 0.06 | -0.05 | -0.08 | -0.16 | -0.02 | 0.30 | 0.56 | 2.24 | 1.92 | 1.72 | 1.64 | 2.28 | 0.11 | 1.56 | 0.16 | 1.76 | 0.13 | 0.14 | 0.09 |
| EPS Growth % | 8% | -16.67% | 50% | -33.33% | 525% | -65.71% | -36.36% | 29.41% | 41.67% | 275% | -50% | 235.59% | 42.16% | 49% | -733.33% | -106.4% | -46.43% | -75% | 16.67% | 11.63% | 4.88% | -28.07% | 1972.73% | -92.95% | 875% | -90.91% | 1253.85% | -7.14% | 48.94% | 39.05% |
| EPS (Basic) | 0.27 | 0.25 | 0.30 | 0.20 | 0.30 | 0.05 | 0.14 | 0.22 | 0.18 | 0.12 | 0.03 | 0.07 | -0.05 | -0.08 | -0.16 | -0.02 | 0.30 | 0.56 | 2.28 | 1.96 | 1.76 | 1.68 | 2.28 | 0.11 | 1.56 | 0.16 | 1.80 | 0.13 | 0.14 | 0.09 |
| Diluted Shares Outstanding | 14.95B | 15.77B | 16.44B | 17.42B | 17.95B | 17.81B | 17.82B | 18.07B | 18.1B | 18.01B | 18.09B | 18.11B | 17.75B | 17.46B | 17.12B | 16.78B | 16.73B | 16.73B | 16.73B | 16.73B | 16.73B | 16.73B | 16.73B | 16.73B | 16.73B | 16.73B | 16.73B | 16.73B | 16.73B | 16.73B |
UK Mortgage Market Concentration
As reported in recent financial statements, Lloyds experienced extreme volatility in net interest income, which plummeted to negative $6.3 billion in 2024Q3 before rebounding to $3.5 billion by 2025Q4, suggesting that the bank's core funding model remains highly sensitive to shifting interest rate environments and accounting adjustments.
The erratic NII trajectory appears to reflect significant fluctuations in the structural hedge and potential accounting noise rather than consistent organic loan growth. Investors should monitor whether this volatility indicates a weakening in the bank's ability to maintain stable net interest income amidst intensifying competition for UK retail deposits.
Based on the provided quarterly data, the net interest margin has faced significant downward pressure, reaching a low of 0.4% in 2025Q4, which suggests that the bank is struggling to maintain historical spreads in an increasingly competitive UK mortgage market and rising deposit beta environment.
The compression of NIM from 2.4% in 2024Q4 to 0.4% in 2025Q4 implies that the bank's pricing power in its core residential mortgage business may be eroding. This trend warrants further investigation into whether the structural hedge is providing the intended protection against the current interest rate cycle.
According to the bank's reported figures, the efficiency ratio reached a concerning 96.1% in 2025Q4, indicating that nearly all revenue is being consumed by operating expenses, a trend that highlights significant challenges in managing the bank's legacy cost base while attempting to transition toward a digital-first model.
The high efficiency ratio suggests that the bank's operating leverage is currently negative, as non-interest expenses remain stubbornly high relative to total revenue. This lack of operating flexibility may limit the bank's ability to absorb further margin compression without impacting its overall profitability and capital return capacity.
As indicated by the 2025Q4 data, non-interest fee income accounted for 93.1% of total revenue, a dramatic shift that suggests the bank is increasingly reliant on volatile fee-based streams rather than its traditional interest-bearing lending activities to support its overall income statement performance.
This high concentration of fee income may indicate that the bank is pivoting toward wealth management and insurance to offset the decline in core banking margins. However, the extreme variability in these figures suggests that this revenue source may be less predictable than the bank's historical interest-based earnings.
Quick answers to the most common questions about buying LYG stock.
Lloyds Banking Group plc (LYG) is profitable, generating $4.66B in net income for the fiscal year ending 2025 with a net profit margin of 7.2%.
Lloyds Banking Group plc (LYG) reported an operating income of $6.66B, resulting in an operating profit margin of 10.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Lloyds Banking Group plc (LYG) generated $19.42B in gross profit for the year, representing a gross profit margin of 29.9%. This demonstrates the company's core pricing power and production efficiency.