Overview

• Lloyds delivered a 5% rise in first-half pre-tax profit to £3.5 billion, supported by an £11.9 billion jump in customer lending and an £11.2 billion increase in deposits.
• NatWest’s pre-tax profit jumped 18% to £3.6 billion as it integrated 1.1 million Sainsbury’s Bank customers and drove down operating costs.
• Both banks have boosted shareholder payouts, with Lloyds lifting its interim dividend by 15% and NatWest declaring a 9.5 pence dividend alongside a £750 million share buyback.
• NatWest upgraded its full-year guidance to income above £16 billion excluding notable items and a return on tangible equity exceeding 16.5% after returning to full private ownership.
• Lloyds reaffirmed its 2025 guidance after maintaining a £1.2 billion motor finance provision to cover potential mis-selling compensation costs.