Lloyds Banking Group raised profitability guidance for 2025 to a return on tangible equity of 14%. A provision of GBP 800 million related to a UK motor finance probe slightly tempered expectations. The FCA’s redress scheme may lead to additional provision charges. Mortgage volume and net interest margin increased, with low loan-loss provisions. Maintaining fair value estimate of GBX 78. Lloyds’ strong deposit base in the UK is a positive differentiator. UK inflation and base rates benefit net interest margins. No shares owned by authors.

Read more at Morningstar: Lloyds Earnings: Good Underlying Performance Lifts Guidance, but Car Finance Investigation Distracts