Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Q1 2017 Earnings Presentation
8 slides from Lloyds Banking's earnings presentation, Apr 27, 2017
Slide 1: Q1 Interim Management Statement: Presentation to Analysts and Investors
TITLE SLIDE IS IN SENTENCE Q1 INTERIM MANAGEMENT CASE. STATEMENT GREEN BACKGROUND. Presentation to Analysts and Investors 27 April 2017
Slide 2: Highlights
HIGHLIGHTS Strong financial performance continues to demonstrate the strength of the business model • Strong underlying performance with significant improvement in statutory profit and returns – Increase in underlying profit to £2.1bn with an improved underlying return on tangible equity of 15.1% –
Slide 3: Underlying Financial Performance
UNDERLYING FINANCIAL PERFORMANCE Strong underlying performance Q1 Q1 (£m) 2017 2016 Change • Increase in underlying profit to £2.1bn Net interest income 2,928 2,906 1% Other income 1,482 1,477 – – NII increased 1% to £2.9bn reflecting an improved margin of 2.80% primarily due to lower funding and de
Slide 4: Income
INCOME Total income of £4.4bn with increased NII and stable other income Net interest margin – vs Q4 2016 (%) Other income trend (£bn) 12bps 1.6 0.03 2.80 1.5 1.5 1.5 0.11 2.68 1.4 (0.02) Q4 Asset Liability Wholesale Q1 Q1 Q2 Q3 Q4 Q1 2016 spread spread funding 2017 2016 2016 2016 2016 2017 & mix &
Slide 5: Statutory Financial Performance
STATUTORY FINANCIAL PERFORMANCE Significant increase in statutory profit reflecting lower below the line charges Q1 Q1 (£m) 2017 2016 • Market volatility and other items in 2016 included the £790m ECN redemption charge Underlying profit 2,083 2,054 • Restructuring costs include Simplification, non-b
Slide 6: Balance Sheet
BALANCE SHEET Strong capital generation in the quarter Common equity tier 1 ratio (%) 0.7% • CET1 ratio of 14.5% pre dividend accrual 13.8 0.7 0.2 0.1 14.5 14.3 – Q1 capital generation of 0.7% with strong (0.3) (0.2) financial performance and continued de-risking – Around 0.8% of capital still retai
Slide 7: Summary
SUMMARY Confidence in the Group’s future prospects is reflected in our strong financial targets Financial targets • Strong financial targets reflecting strength of • Our differentiated business model is delivering business model – Simple, efficient and low risk business model – Now expect 2017 FY NI
Slide 8: Forward Looking Statement and Basis of Presentation
FORWARD LOOKING STATEMENT AND BASIS OF PRESENTATION FORWARD LOOKING STATEMENTS This document contains certain forward looking statements with respect to the business, strategy and plans of Lloyds Banking Group and its current goals and expectations relating to its future financial condition and perf