Edward Firth's questions to Lloyds Banking Group (LYG) leadership • Q2 2025
Question
Edward Firth of KBW asked for clarification on the expected timetable for the Supreme Court's motor finance judgment. He also questioned the 2026 capital generation target of over 200 basis points, asking how it reconciles with the bank's stated growth ambitions.
Answer
Executive Director & CFO William Chalmers clarified that while they expect the motor finance judgment before the court's summer recess, they have no special insight into the exact timing. Both he and Group Chief Executive Charlie Nunn affirmed that the 2026 capital generation target of >200 bps is consistent with plans for profitable balance sheet growth, supported by investment in capital-light, high-return businesses like wealth and transport, which drives OOI.