Overview
- Statutory pre-tax profit rose 12% to about £6.66bn for 2025, with fourth-quarter profit of £1.98bn topping forecasts.
- The board raised the ordinary dividend 15% to 3.65p per share and launched a share buyback of about £1.75bn to £1.8bn, taking total 2025 returns to roughly £3.9bn.
- Management upgraded 2026 guidance, targeting a return on tangible equity above 16% and underlying net interest income of around £14.9bn.
- Remediation costs of £968m were recorded in 2025, including £800m related to motor finance, taking total provisions to about £1.95bn as the FCA consultation outcome is expected in March.
- Underlying impairment charges nearly doubled to £795m, while the group cited AI-driven benefits of around £50m in 2025 with a goal of about £100m in 2026 and confirmed a £405m employee bonus pool.