Lloyds Banking Group vs NatWest: Revenue, Profit and Business Model
Lloyds Banking Group reported ~$24.6B of revenue in FY2025 and ~$5.5B of net income. NatWest reported ~$21.1B of revenue in FY2025 and ~$7.2B of net income.
Latest financial snapshot
Lloyds Banking Group
- Latest revenue
- ~$24.6B (FY2025)
- Net income
- ~$5.5B
- Net margin
- 22.5%
- Revenue growth
- +2.1% a year, FY2021–FY2025
NatWest
- Latest revenue
- ~$21.1B (FY2025)
- Net income
- ~$7.2B
- Net margin
- 34.3%
- Revenue growth
- +8.0% a year, FY2021–FY2025
Financial summary
Lloyds Banking Group
Lloyds' financial history splits into before and after 2008. Its takeover of HBOS, completed in January 2009, brought heavy commercial property losses and led to a UK government capital injection of about $26.4 billion (£20 billion) and a peak state stake of roughly 43%. The government sold its last shares in May 2017. The bank then paid out about $28.9 billion (£21.9 billion) for PPI mis-selling. Under Charlie Nunn, results have been driven by higher interest rates and the structural hedge: 2025 underlying net income was ~$24.2 billion (£18.3 billion), statutory profit before tax rose 12% to ~$8.79 billion (£6.66 billion), the CET1 ratio was 14.0% at year end, and distributions totalled ~$5.15 billion (£3.9 billion), including a ~$2.31 billion (£1.75 billion) buyback completed in September 2026. In H1 2026 net income grew 9% to ~$12.8 billion (£9.7 billion), net interest margin reached 3.19%, and statutory profit after tax was ~$4.09 billion (£3.1 billion).
NatWest
After the 2008 rescue, when the UK government injected ~$60.1 billion (£45.5 billion) and took about 84% of RBS, the group spent a decade shrinking, settling legacy litigation and exiting overseas businesses. Profits have since climbed: attributable profit rose from ~$5.81 billion (£4.4 billion) in 2023 and ~$5.94 billion (£4.5 billion) in 2024 to ~$7.26 billion (£5.5 billion) in 2025, when total income reached ~$21.6 billion (£16.4 billion), operating expenses were about $11 billion (£8.3 billion), impairments were 16 basis points of loans and the CET1 ratio was 14.0%. Total 2025 distributions were ~$5.41 billion (£4.1 billion). In H1 2026 attributable profit was ~$3.96 billion (£3.0 billion), RoTE 19.7%, cost:income ratio 46.0% and EPS 38.1 pence, up 23.3%, and management raised guidance.
Revenue and profit by year
Lloyds Banking Group
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$24.6B | ~$5.5B | 22.5% | +6.0% | Source |
| FY2024 | ~$23.2B | ~$5.2B | 22.3% | -4.1% | Source |
| FY2023 | ~$24.2B | ~$6.5B | 26.9% | +26.1% | Source |
| FY2022 | ~$19.2B | ~$4.5B | 23.3% | -15.2% | Source |
| FY2021 | ~$22.6B | ~$7.1B | 31.3% | — | Source |
NatWest
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$21.1B | ~$7.2B | 34.3% | +11.3% | Source |
| FY2024 | ~$18.9B | ~$6B | 31.5% | +1.2% | Source |
| FY2023 | ~$18.7B | ~$5.8B | 31.0% | +9.2% | Source |
| FY2022 | ~$17.1B | ~$4.4B | 25.7% | +10.5% | Source |
| FY2021 | ~$15.5B | ~$3.9B | 25.1% | — | Source |
Where the revenue comes from
Lloyds Banking Group
- Net interest income~70%
~$18 billion (£13.6 billion) of underlying net interest income in 2025 from mortgages, cards, loans and business lending.
- Other income~30%
~$8.05 billion (£6.1 billion) of underlying other income in 2025 from fees, insurance, pensions, wealth and leasing, before operating lease depreciation.
NatWest
- Net Interest Income
Primary source of income
Income from loans, mortgages, and securities after paying interest on deposits and other funding.
- Fees and Commissions
Material recurring income
Payments, cards, lending fees, account fees, advice, and wealth-management fees.
- Commercial and Institutional Services
Core customer business
Lending, deposits, risk management, transaction banking, markets services, and relationship banking for businesses and institutions.
- Private Banking and Wealth Management
Higher-touch customer business
Coutts, Premier, investment advice, assets under management and administration, and affluent customer banking.
Business model and strategy
Lloyds Banking Group
How it makes money
Lloyds makes money mainly from the spread between what it pays on deposits and what it earns on loans. Underlying net interest income was ~$18 billion (£13.6 billion) in 2025, about 70% of underlying income, generated by Retail (mortgages through Halifax and Lloyds Bank, credit cards including MBNA, personal loans, current accounts and savings) and Commercial Banking (lending, payments and transaction services for sm…
Growth strategy
Lloyds' 2022-2026 plan aimed to grow fee-based income alongside lending. Key moves include buying full control of Schroders Personal Wealth in 2025 and renaming it Lloyds Wealth, building Citra Living as a private rental housing business, expanding Lex Autolease and transport leasing, investing in digital banking and data, and growing workplace pensions through Scottish Widows.
Competitive advantage
Scale in UK deposits and mortgages is Lloyds' main advantage. With ~$655 billion (£496.5 billion) of customer deposits and ~$635 billion (£481.1 billion) of underlying loans at the end of 2025, it can fund lending more cheaply than most rivals, and its multi-brand approach (Lloyds Bank, Halifax, Bank of Scotland) gives it the UK's largest mortgage book.
NatWest
How it makes money
NatWest makes most of its money from net interest income: it gathers UK current-account and savings deposits and lends them out as mortgages, personal loans, cards and business credit, earning the spread plus income from its structural hedge. It reports three businesses. Retail Banking (NatWest, Royal Bank of Scotland and Ulster Bank brands) earned ~$4.12 billion (£3.12 billion) operating profit in 2025;
Growth strategy
NatWest's strategy under Paul Thwaite has three strands: grow customer balances across its three businesses, simplify the bank through digital self-service, AI and branch consolidation, and manage capital to fund both bolt-on deals and distributions.
Competitive advantage
NatWest's main advantage is a large, sticky UK deposit base. Salary-paying current accounts rarely move, so the bank funds mortgages and business loans more cheaply than most challengers. It is also one of the largest UK business banks, which gives it payments, deposit and lending relationships with SMEs and corporates, and Coutts plus Evelyn Partners give it a leading private banking and wealth franchise in the UK.
Questions about Lloyds Banking Group vs NatWest
Which company has higher revenue — Lloyds Banking Group plc or NatWest Group plc?
Lloyds Banking Group plc reported ~$24.6B (FY2025), while NatWest Group plc reported ~$21.1B (FY2025). By last reported revenue, Lloyds Banking Group plc is the larger business, with NatWest Group plc reporting a smaller revenue base.
What is the market cap of Lloyds Banking Group plc vs NatWest Group plc?
Lloyds Banking Group plc's market capitalisation stands at $61.0B, while NatWest Group plc's is $54.5B. Lloyds Banking Group plc carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to NatWest Group plc.
Which is more financially efficient — Lloyds Banking Group plc or NatWest Group plc?
Lloyds Banking Group plc generates $393k / employee in revenue per employee, while NatWest Group plc generates $348k / employee. Lloyds Banking Group plc shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Lloyds Banking Group plc and NatWest Group plc make money?
Lloyds Banking Group plc and NatWest Group plc generate revenue in fundamentally different ways. Lloyds Banking Group plc: Lloyds makes money mainly from the spread between what it pays on deposits and what it earns on loans. NatWest Group plc: NatWest makes most of its money from net interest income: it gathers UK current-account and savings deposits and lends them out as mortgages, personal loans, cards and business credit, earning the spread plus income from its structural hedge.
Which company is valued higher relative to revenue — Lloyds Banking Group plc or NatWest Group plc?
On a price-to-sales (P/S) basis, Lloyds Banking Group plc trades at 2.5x P/S and NatWest Group plc at 2.6x P/S. NatWest Group plc commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Lloyds Banking Group plc. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Lloyds Banking Group plc bigger than NatWest Group plc?
By last reported revenue, Lloyds Banking Group plc (~$24.6B (FY2025)) is the larger company compared to NatWest Group plc (~$21.1B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Lloyds Banking Group vs NatWest overview