Lloyds Banking Group plc · LSE:LLOY
Lloyds Banking — Investor Presentation (June 2019)
19 slides from Lloyds Banking's investor presentation, Jun 14, 2019
Slide 1: ShareSoc Visit to Lloyds Banking Group
SHARESOC VISIT TO LLOYDS BANKING GROUP Carla Antunes da Silva, Group Strategy, Corporate Ventures & Investor Relations Director Douglas Radcliffe, Group Investor Relations Director 14 June 2019
Slide 2: Introduction
Introduction Douglas Radcliffe 1
Slide 3: UK's largest financial services provider with distinctive strategy and customer focused business model
UK’s largest financial services provider with distinctive strategy and customer focused business model Distinctive competitive strengths • 26 million customers across our key businesses in Retail, Commercial Banking and Insurance Differentiated multi-brand, multi- • Largest branch network and digita
Slide 4: Committed to Helping Britain Prosper
Committed to Helping Britain Prosper Delivering on our purpose Increasing our support going forward 20201 >700,000 35.3% Lending to first time buyers £30bn individuals, businesses of senior roles now and charities trained in held by women. Up People digital skills during 2018 from 29% in 2014 Indivi
Slide 5: Helping communities through building digital capabilities and skills while supporting the transition to a low carbon economy
Helping communities through building digital capabilities and skills while supporting the transition to a low carbon economy Building digital skills for individuals, charities Group ambitions anchored to the goals in the UK and small businesses Government’s Clean Growth Strategy • Lloyds Bank Academ
Slide 6: Strategic update
Strategic update Carla Antunes da Silva 5
Slide 7: We have followed a clear and evolving strategic path since 2011
We have followed a clear and evolving strategic path since 2011 GSR 1 GSR 2 2011 2014 2017 Key strategic ▪ Reshape our portfolio ▪ Deliver sustainable growth priorities ▪ Simplify the Group ▪ Become simpler and more ▪ Invest in the core business efficient ▪ Strengthen balance sheet and ▪ Create the
Slide 8: Changing customer behaviour and expectations create opportunities
Changing customer behaviour and expectations create opportunities Evolving customer needs and expectations… …require a proactive response Increasing personalisation • Richer interactions, better understanding of customer needs • Deeper customer engagement Connected, seamless experience • More person
Slide 9: Third phase of the Group's strategy with more than £3bn strategic investment
In February 2018 we launched the third phase of the Group’s strategy with more than £3bn strategic investment to transform the Group for success in a digital world LEADING CUSTOMER EXPERIENCE MAXIMISING GROUP CAPABILITIES • #1 UK digital bank, with Open Banking • £6bn loan growth in start-ups, SME a
Slide 10: Increased investment is enabling further customer enhancements and market leading returns
Increased investment is enabling further customer enhancements and market leading returns Market leading • Strong strategic progress enabled by unique, efficiency Freeing up customer focused business model Future proofing our capital for >£3.0bn business model strategic investment • Ability to deliv
Slide 11: Top quartile investment supported by market leading efficiency
Top quartile investment supported by market leading efficiency IT / Technology cash spend as % of operating costs1 Reported cost:income ratio Further improving our efficiency advantage Cost:income ratio2 19% 2020 Low 40s (Exit) 2018 18% 2018 49% 59% 2020 >16% 49% 49% Low 40s 2018 16% 54% 16% 54% UK
Slide 12: Sustainable and low risk growth – opportunities for growth in targeted segments
Sustainable and low risk growth – opportunities for growth in targeted segments Strong franchise across key channels and products Further growth opportunities Channels market share • Organic growth in targeted key segments: Digital new business volumes1 22% Branches market share 21% - Financial Plan
Slide 13: Creating a market leading wealth proposition for customers with Schroders
Creating a market leading wealth proposition for customers with Schroders Clear rationale for strategic partnership between Mass Market two of UK’s strongest financial services businesses ‐ Digitally enabled direct Financial Planning & Unique client base Retirement offer Mass Affluent – Affluent Mul
Slide 14: Performance update
Performance update Douglas Radcliffe 13
Slide 15: Strong business performance in the first quarter of 2019
Strong business performance in the first quarter of 2019 with increased profits and market leading returns £4.4bn Net income +2% • Statutory profit after tax of £1.2bn up 2% with strong RoTE of 12.5% Cost:income ratio 44.7% and EPS up 2% to 1.49p; TNAV up 0.4p on year end to 53.4p (incl. remediation
Slide 16: Continued strong capital build with a lower capital target
Continued strong capital build with a lower capital target Pre-dividend capital build (basis points) 210 c.185 25 170-200 • Strongly capital generative business model; expect ongoing capital build of 170-200bps every year - Represents free capital build, over and above uses of c.125 capital and know
Slide 17: Increasing shareholder returns since resumption of dividends in 2014
Increasing shareholder returns since resumption of dividends in 2014 Shareholder returns (pence per share) 5.67 4.45 • c.£12bn returned to shareholders over last 5 years Ordinary dividend 2.46 Special dividend • Clear dividend policy: progressive and sustainable 1.40 3.05 ordinary dividends with fle
Slide 18: Summary – significant business progress with strong start to the Group's latest strategic plan
Summary – significant business progress with strong start to the Group’s latest strategic plan Statutory profit after tax • Significant progress against strategic priorities with (£bn) increased investment in the business • Strong financial performance with continued growth in profit and market-lead
Slide 19: Q&A
Q&A Carla Antunes da Silva & Douglas Radcliffe 18
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