Lloyds Banking Group plc

Financial Performance: For 2024, the statutory profit after tax was £4.5 billion, with a return on tangible equity (ROTE) of 12.3%, which improves to 14% when excluding a £700 million provision related to motor finance commissions. Net income reached £17.1 billion, reflecting a strong business momentum. The bank demonstrated capital generation of 148 basis points for the year. These metrics indicate robust financial health and effective management.

Dividends and Share Buybacks: The bank announced a 15% increase in the ordinary dividend, now totaling 3.17p per share, alongside a £1.7 billion share buyback. Collectively, these actions amount to up to £3.6 billion in shareholder distributions, highlighting a strong commitment to returning capital and building shareholder value.

Operational Challenges and Provisions: A significant negative point is the £700 million additional provision related to motor finance commissions, stemming from legal judgments that altered previously accepted practices. This ongoing legal risk could potentially impact future financial results and must be watched closely.