Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Debt Investor Presentation (2019)
21 slides from Lloyds Banking's debt investor presentation, 2019
Slide 1: Fixed Income Investor Presentation Q3 2019
FIXED INCOME INVESTOR PRESENTATION Q3 2019
Slide 2: Simple group structure with multiple issuance points
Capital, Funding & Classification:Q3 Limited Group Overview Results Liquidity Appendix Simple group structure with multiple issuance points HoldCo Main Entities Lloyds Banking Group Ratings A3 / BBB+ / A+ P-2 / A-2 / F1 Example Products Senior Unsecured - Capital Ring-Fenced Sub-Group Non-Ring-Fence
Slide 3: H1 2019 | Opportunities for growth in targeted key segments
Capital, Funding & Group Overview Classification:Q3 Limited Results Liquidity Appendix H1 2019 | Opportunities for growth in targeted key segments Channels market share Digital new business volumes(1) 18% Branch new business volumes(1) 21% Product market share Consumer credit card balances 24% PCA d
Slide 4: Well diversified loan book of £447bn; credit quality remains strong
Capital, Funding & Group Overview Classification:Q3 Limited Results Liquidity Appendix Well diversified loan book of £447bn; credit quality remains strong Q3 2019 Loans & Advances of £447bn Commercial Banking other, £5bn, 1% Central items, £2bn, 0% Mid Markets, £31bn, 7% Wealth , £1bn, 0% • Low risk
Slide 5: Balance sheet: ongoing growth in targeted segments while optimising the portfolio
Capital, Funding & Group Overview Classification:Q3 Limited Results Liquidity Appendix Balance sheet: ongoing growth in targeted segments while continuing to optimise the portfolio Loans and advances (£bn) • Prudent lending growth in targeted segments Q3 2019 271 19 52 63 39 447 - Open mortgage book
Slide 6: Strong strategic progress and solid financial performance position the Group well
Capital, Funding & Group Overview Classification:Q3 Limited Results Liquidity Appendix Strong strategic progress and solid financial performance position the Group well • Strong strategic progress and the right strategy in the current challenging market environment OUR Helping Britain PURPOSE Prospe
Slide 7: Q3 2019 Results
Classification: Limited Q3 2019 Results 7
Slide 8: Solid financial performance in a challenging environment
Capital, Funding & Group Overview Classification:Q3 Limited Results Liquidity Appendix Solid financial performance in a challenging environment Q3 2019 Year to date £13.0bn • Statutory profit before tax of £2.9bn for the nine months, down 40%, Net income (3)% significantly impacted by additional PPI
Slide 9: Solid financial performance: ongoing cost reduction continues to partly offset income pressure
Capital, Funding & Group Overview Classification:Q3 Limited Results Liquidity Appendix Solid financial performance: ongoing cost reduction continues to partly offset income pressure in a challenging rate environment Net interest income Operating costs (£m) (£m) 2.93% (11)bps 5bps 2bps 2.89% (3)% (3)
Slide 10: Low risk business model: underlying credit quality remains strong
Capital, Funding & Group Overview Classification:Q3 Limited Results Liquidity Appendix Low risk business model with prudent participation choices: underlying credit quality remains strong Asset quality ratio (bps) 38 40 • Gross AQR in Q3 of 40bps with net AQR of 33bps, both 33 impacted by a single l
Slide 11: Capital, Funding & Liquidity
Classification: Limited Capital, Funding & Liquidity 11
Slide 12: Robust capital position with lower Pillar 2A requirement
Capital, Funding & Classification:Q3 Limited Group Overview Results Liquidity Appendix Robust capital position with lower Pillar 2A requirement • Pillar 2A down 10bps in Q3 to 2.6% CET1 Ratio • Free capital build YTD of 149bps pre-PPI ; 28bps after PPI 13.9% 14.0% • Total PPI charge of £2.45bn YTD (
Slide 13: Interim MREL requirement met, on-track for end-state
Capital, Funding & Classification:Q3 Limited Group Overview Results Liquidity Appendix Interim MREL requirement met, on-track for end-state Transitional MREL Ratio Total Capital Ratio 32.5% Q3 2019 32.2% 13.5% 2.7% 5.1% 21.4% • Transitional MREL ratio of H1 2019 14.0% 2.8% 4.9% 21.7% 32.5%. Final MR
Slide 14: Successful execution of 2019 funding plan with continued diversification
Capital, Funding & Classification:Q3 Limited Group Overview Results Liquidity Appendix Successful execution of 2019 funding plan with continued diversification (2) 9M 2019 Public Funding by Product Funding Portfolio by Maturity (at Q3 19) £bn 7 6 < 1 Year (MM) (3) • Successful execution of plan over
Slide 15: H1 2019 | Legal entity balance sheet analysis
Capital, Funding & Classification:H1 Limited Group Overview Results Liquidity Appendix H1 2019 | Legal entity balance sheet analysis Lloyds Bank Plc Lloyds Bank Corporate Markets Plc (RFB) (NRFB) £593bn £593bn £87bn £87bn 5 Other 29 Other Other 9 Other 56 10 Derivatives Derivatives 11 8 Financial 15
Slide 16: Appendix
Classification: Limited Appendix 16
Slide 17: Creating a market leading wealth proposition
Capital, Funding & Group Overview Classification:Q3 Limited Results Liquidity Appendix Creating a market leading wealth proposition A full service offering for LBG clients Supported by a number of key differentiators Partnership will provide a full service offering for Leveraging the strengths betwe
Slide 18: Group's strong focus on sustainability reflected in ESG ratings
Capital, Funding & Group Overview Classification:Q3 Limited Results Liquidity Appendix Group’s strong focus on sustainability reflected in ESG ratings BUSINESS • £2bn Clean Growth Finance Initiative: Metroline low emission bus fleet; and the Environmental world’s largest wind farm. Updated sector po
Slide 19: Notes
Classification: Limited Notes 19
Slide 20: Debt Investor Relations Contacts
Classification: Limited Debt Investor Relations Contacts Website: www.lloydsbankinggroup.com/investors/fixed-income-investors INVESTOR RELATIONS LONDON Douglas Radcliffe Edward Sands Nora Thoden Group Investor Relations Director Director, Investor Relations Director, Investor Relations +44 (0)20 735
Slide 21: Forward looking statements and basis of presentation
Classification: Limited Forward looking statements and basis of presentation Forward looking statements This document contains certain forward looking statements with respect to the business, strategy, plans and/or results of Lloyds Banking Group plc together with its subsidiaries (the Group) and it
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