Lloyds Banking Group's profits fell 36% in early 2025 due to losses in motor finance from rising defaults and interest rates.

Lloyds Banking Group reported a 36% drop in profits for the first half of 2025, citing significant losses in its motor finance division amid rising loan defaults and higher interest rates. The decline marks a sharp reversal from previous growth, with the bank attributing the shortfall to increased credit risk and economic pressures affecting vehicle financing. Despite a strong performance in other areas like mortgages and savings, the motor finance segment dragged down overall results.