Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Investor Day (June 2024)
24 slides from Lloyds Banking's investor day presentation, Jun 27, 2024
Slide 1: Digitise and diversify Business and Commercial Banking
Classification: Public Digitise and diversify Business and Commercial Banking Lloyds Banking Group 27 June 2024
Slide 2: Welcome and introduction
Classification: Public Welcome and introduction Today’s presenters Agenda 1 Introduction Charlie Nunn Group Chief Executive 2 Strategic overview Elyn Corfield CEO Business and Commercial Banking (BCB) 3 Summary 1
Slide 3: Growing our scaled and profitable BCB business
Classification: Public Growing our scaled and profitable BCB business Purpose • Important contributor to UK economy and the Group Helping • Differentiated offering building on strong, trusted relationships Britain • Investing to diversify, digitise and transform the business, whilst Prosper leveragi
Slide 4: Digitise and diversify our BCB business
Classification: Public Digitise and diversify our BCB business 1 Deepen and innovate in Reporting Commercial Banking division Consumer Business Business & Corporate & Institutional 2 units Commercial Banking (BCB) Banking Create a new mass affluent offering Business Banking: <£3m turnover Segmentati
Slide 5: Strong financial upside
Classification: Public Strong financial upside c.£0.3bn strategic initiative revenues Additional benefits from core franchise growth c.£1.5bn by 2026 Further upside c.£0.3bn BCB c.20% of total Deposit retention Market share growth CIB c.£2.9bn FY 2023 BCB net income, up >20% since FY 2021 MA/IP&I c.
Slide 6: Strategic overview
Classification: Public Strategic overview Elyn Corfield CEO, Business and Commercial Banking 5
Slide 7: Scale business, with opportunities for growth
Classification: Public Scale business, with opportunities for growth Strong foundations Presentation focus areas As at FY 2023 Outlining the strategic opportunity Reach c.1.1m c.20% Customers SME relationship share1 Diversifying the business Scale £33bn £77bn Customer loans Customer deposits Digitis
Slide 8: Important sector, key contributor to the UK economy
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities Important sector, key contributor to the UK economy Crucial area to Continuously evolving market... Improving conditions Helping Britain Prosper Inflationary pressures impacting cash flow c.60% Competitiv
Slide 9: BCB is a broad and deep business
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities BCB is a broad and deep business Coverage across customer segments… …with regional breadth and sector expertise Customers by region, FY 20231 Business Mid As at FY 2023 SME Banking Corporates Other Busine
Slide 10: Strong franchise, with unique competitive advantages
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities Strong franchise, with unique competitive advantages Strong foundations Competitive advantages #1 Leading brand Trusted high street bank; leader for brand and service quality Brand for small businesses1 >
Slide 11: Strategic priorities to drive value
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities Strategic priorities to drive value Vision Building a digitally-led relationship bank Diversify Digitise & Transform Group opportunities Deepening relationships, meeting Deliver a compelling, more Connect
Slide 12: Clear upside from building a more diversified business
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities Clear upside from building a more diversified business Opportunity to deepen customer relationships… …and expand franchise to deliver growth Market shares (%), Dec 231 LBG Average Product Holding (APH) by
Slide 13: Deepening and expanding across product and sector
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities Deepening and expanding across product and sector Vision Delivering Progress to date/delivering value value Leading digital propositions, including New digital journeys e.g. credit cards, c.60% through co
Slide 14: Enhancing our merchant services offering
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities Enhancing our merchant services offering Attractive opportunity Clear, segmented strategy leveraging strategic partnerships… c.25bn Business Delivering a targeted proposition, with enhanced digital servic
Slide 15: Ongoing journey to Digitise and Transform our business
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities Ongoing journey to Digitise and Transform our business Accelerated shift to digital, driving value for customer and Group Opportunity to go further Growing c.85% % of customers that are digitally active1
Slide 16: Scaling digital origination and servicing
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities 1 Scaling digital origination and servicing Digitising onboarding and servicing to drive growth and efficiencies Progress to date Up to 15x Reduction in BCA opening times since Scaling digital origination
Slide 17: Personalising to improve experience and conversion
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities 2 Personalising to improve experience and conversion Omni-channel personalisation strategy Progress to date 6x Increase in digital content engagement Rolling out personalisation engine across channels, ut
Slide 18: Transforming to drive value
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities 3 Transforming to drive value Proven transformation track record, leveraging technology to go further Progress to date Disciplined approach to value of lending relationships vs. volume >50% Increase in st
Slide 19: Unlocking broader Group opportunities
Strategic opportunity Classification: Public Diversify Digitise & Transform Group opportunities Unlocking broader Group opportunities Clear Group connectivity Leveraging benefits of wider Group to deliver for customers c.70% Strong Lower acquisition cost due to extensive Consumer franchise Business
Slide 20: Confident in delivery of financial benefits
Classification: Public Confident in delivery of financial benefits c.£0.3bn strategic initiative revenues Additional benefits from core franchise Additional revenues targeted from BCB strategic initiatives, 20261 Example initiatives: Further revenue upside BCA Onboarding Mobile-First Deposits Auto C
Slide 21: Summary
Classification: Public Summary 20
Slide 22: Growing our scaled and profitable BCB business
Classification: Public Growing our scaled and profitable BCB business Purpose • Important contributor to UK economy and the Group Helping • Differentiated offering building on strong, trusted relationships Britain • Investing to diversify, digitise and transform the business, whilst Prosper leveragi
Slide 23: Q&A
Classification: Public Q&A 22
Slide 24: Disclaimer
Classification: Public Disclaimer Important notice The information, statements, views and opinions contained in this document and accompanying discussion (“this Presentation”) are for informational and reference purposes only. This Presentation has been provided by the Group (defined below). This Pr