PHOTO: REUTERS[LONDON] Lloyds Banking Group said on Thursday (Jan 29) that its annual profit rose by 12 per cent, beating expectations. It also raised its performance forecast, as its increased income offset nearly £1 billion pounds (S$1.7 billion) in charges for compensating customers who were mis-sold motor finance. The British bank reported profit before tax for 2025 of £6.7 billion, up from £5.97 billion the year before and better than the £6.4 billion average of analysts’ forecasts. It lifted its profitability target, saying it now expects to make a return on tangible equity greater than 16 per cent in 2026, having forecast just 12 per cent for 2025. The bank said it would also buy back £1.75 billion of its own shares, bringing total capital returned to shareholders in 2025 to £3.9 billion.