Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Debt Investor Presentation (2019)
27 slides from Lloyds Banking's debt investor presentation, 2019
Slide 1: Fixed Income Investor Presentation Q1 2019
FIXED INCOME INVESTOR PRESENTATION Q1 2019
Slide 2: Group Overview
LLOYDS Group Overview
Slide 3: Simple group structure with multiple issuance points
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Simple group structure with multiple issuance points HoldCo Main Entities Lloyds Banking Group Ratings(1) A3 / BBB+ / A+ P-2 / A-2 / F1 Example Products Senior Unsecured - Capital Ring-Fenced Sub-Group Non-Ring-Fenced S
Slide 4: Well diversified loan book of £441bn
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Well diversified loan book of £441bn Q1 2019 Loans & Advances (£bn, %) Wealth, £1bn, 0% Commercial Banking other, £5bn, Central items, £3bn, 1% 1% Global Corporates and Financial Institutions, £34bn, 8% Mid Markets, £31
Slide 5: Iconic brands with strong multichannel franchise
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Iconic brands with strong multichannel franchise Channels market share Digital new business volumes(1) 21% Branch new business volumes(1) 20% Number of branches(2) 22% Product market share Consumer credit card balances
Slide 6: >£3bn strategic investment
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Strong start to the second year of the Group’s current strategic plan Transforming the Group for Further progress on digitising the Group and enhancing customer propositions success in a digital world • Strategic invest
Slide 7: Q1 2019 Results
LLOYDS Q1 2019 Results
Slide 8: Strong business performance with increased profits and market leading returns
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Strong business performance with increased profits and market leading returns £4.4bn Net income +2% Cost:income ratio 44.7% • Statutory profit after tax of £1.2bn up 2% with strong RoTE of 12.5% (incl. remediation) (3.1
Slide 9: Continued growth in targeted segments while optimising the portfolio
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Continued growth in targeted segments while continuing to optimise the portfolio Loans and advances (£bn) Q1 2019 264 21 51 63 39 441 • Prudent lending growth in targeted segments Q1 2018 267 23 49 61 41 445 - Open mort
Slide 10: Strong financial performance with resilient margin and reducing costs
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Strong financial performance with resilient margin and reducing costs Net interest income Operating costs (£m) (£m) 2.93% (12)bps 9bps 1bps 2.91% (3)% (3)% 2,008 3,171 28 7 15 1,957 92 3,083 (19) (101) (161) Q1 2018 Ass
Slide 11: Low risk business model with prudent participation choices
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Low risk business model with prudent participation choices Asset quality ratio (bps) -4 -5 -5 • Gross AQR stable on Q4 2018 at 30bps; net AQR up -8 -12 on Q4 due to expected lower releases and write backs 30 30 30 27 23
Slide 12: Q1: Capital, Funding & Liquidity
Q1: Capital, Funding & Liquidity 12
Slide 13: Updated capital requirements; continued strong capital build
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Updated capital requirements; continued strong capital build • Systemic Risk Buffer confirmed at 2.0% for the ring-fenced subgroup (equivalent to 1.7% at Group) (4) 13.9% 13.9% 13.9% • Pillar 2A reduced by 30bps in 2018
Slide 14: MREL ratio ahead of interim requirement, on-track for end-state
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity MREL ratio ahead of interim requirement, well on-track for end-state Transitional MREL Ratio HoldCo Issuance (£bn) • Strong total capital ratio of 23.1% at 2019e 32.6% 31.5% FY 2018 means minimal additional 2018 12 capi
Slide 15: Good progress on 2019 funding plan, building on a successful 2018
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Good progress on 2019 funding plan, building on a successful 2018 2018 Funding by Product Funding Portfolio by Maturity (at Q1 19) £bn 9 8 < 1 Year (MM) (2) • £21.4bn raised during 2018, inclusive 7 23% 6 32% < 1 Year o
Slide 16: 2018 Results
LLOYDS 2018 Results 16
Slide 17: Strong financial performance with continued growth in profits and returns
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Strong financial performance with continued growth in profits and returns Statutory profit after £4.4bn tax +24% • Statutory profit after tax of £4.4bn up 24%, with EPS 27% higher 5.5p Earnings per share +27% • Underlyi
Slide 18: Asset pricing and mix: mortgage pricing competitive but margin resilient
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Asset pricing and mix: mortgage pricing remains competitive but margin resilient (Book size £bn, Gross margin %(1)) Mortgage book UK consumer finance 2.0% 1.9% 7.2% 7.0% • Mortgage pricing remains competitive 291 288 39
Slide 19: Liability pricing and mix: current account growth and structural hedging
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Liability pricing and mix: current account growth and prudent structural hedging programme Improving liability mix(1) Hedged balances(2) (Book size £bn, Gross margin %) (£bn) Hedge as % of 0.3% 0.4% 460 459 39% balance
Slide 20: Appendix
Appendix , | i
Slide 21: FY 2018 Legal entity balance sheet analysis
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity FY 2018 | Legal entity balance sheet analysis Lloyds Bank Corporate Markets Plc Lloyds Bank Plc (RFB) (NRFB) £593bn £593bn £78bn £78bn Other Other 30 2 51 Derivatives Other Derivatives 11 Other 8 11 18 Financial RWAs £1
Slide 22: Strong mortgage portfolio with continued low LTVs
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Strong mortgage portfolio with continued low LTVs Dec 2018 Dec 2017 Dec 2010 Mainstream Buy to let Specialist Total Total Total(1) Average LTVs 42.5% 52.1% 45.8% 44.1% 43.6% 55.6% New business LTVs 63.1% 58.6% n/a 62.5%
Slide 23: Creating a market leading wealth proposition for customers
Q1: Capital, Group Overview Q1 Results 2018 Results Appendix Funding & Liquidity Creating a market leading wealth proposition for customers Clear rationale for strategic partnership between Mass Market two of UK’s strongest financial services businesses ‐ Digitally enabled direct Financial Planning
Slide 24: Notes
Notes LLOYDS 24
Slide 25: Debt Investor Relations Contacts
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 7356 1571 +44 (0)20 7356 15
Slide 26: Forward looking statements
Forward looking statements Forward looking statements This document contains certain forward looking statements with respect to the business, strategy, plans and/or results of the Group and its current goals and expectations relating to its future financial condition and performance. Statements that
Slide 27: Lloyds
LLoyDs
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