Lloyds Bank has announced a 12% jump in pre-tax profit to £6.7bn in its latest annual results, ahead of previous analyst forecasts.

The bank said it benefitted from a higher net income at £18.3bn, up 7% on last year, which helped to offset remediation costs in relation to the motor finance investigation by the Financial Conduct Authority (FCA).

Lloyds reported £968m worth of remediation costs for the year, of which £800m related to the potential impact of motor finance commission arrangements, taken in Q3.

The bank’s annual figures, covering the 2025 calendar year, also showed that underlying loans and advances to customers totalled £481.1bn, increasing by £22bn (5%) over the year, with growth across retail of £18.8bn and commercial banking of £2.7bn.

In Q4, balances increased by £4bn, which Lloyds said was “significantly driven” by an increase in UK mortgages, retail unsecured products and the European retail business.

As a result of the bank’s performance across 2025, Lloyds revealed capital returns for shareholders would total £3.9bn, while it also detailed plans for a new £1.75bn share buyback scheme.

“The group demonstrated sustained strength in financial performance in 2025, including in the final quarter, with continued balance sheet and income growth, as well as strong cost discipline and credit performance,” Lloyds chief executive, Charlie Nunn, commented.

“Looking ahead to 2026 and the culmination of the five-year strategy we set out in 2022, our continued business momentum and strategic delivery enable us to upgrade guidance. The sustained strength in performance means we are well positioned for 2026 and beyond.”

---