LYG Sees Mid-Single-Digit Net Income CAGR
LYG reports half year results and guidance
LYG Earnings Notes: - 2026 half year results - On track for £2B of strategic initiative Income by the end of 2026 - Launching accelerate 2030 strategy - From 2027 to 2030, sees mid-single-digit Net Income cagr and high-single-digit underlying other Operating Income cagr - Sees cost:income ratio of less than 45% in 2030, with year-on-year reductions - Sees asset quality ratio of between 25 basis points and 30 basis points through the plan period from 2027 to 2030 - Sees return on tangible equity of C.20% in 2030 and greater than 18% in 2028 - Sees capital Generation of greater than 225 basis points in 2030 - Sees pro forma cet1 ratio of C.13.0% from 2027 to 2030 - For 2026 the group reiterates its guidance - Remediation charge of £39M was recognised by the group in the first half of 2026 - There have been no further charges relating to Motor finance commission arrangements - H1 2026 impairment charge £616M - Intention to implement a further ordinary share buyback programme of up to £1.0B, in addition to the £1.75B - Restructuring costs for the first half of 2026 were £34M - H1 statutory profit before tax of £4.3B - H1 underlying net interest Income of £7.3B - H1 Banking net interest margin of 3.19% - H1 cet1 ratio 13.6%