Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Investor Presentation (November 2014)
19 slides from Lloyds Banking's investor presentation, Nov 19, 2014
Slide 1: Responsible Business Performance and Helping Britain Prosper Plan
RESPONSIBLE BUSINESS PERFORMANCE AND HELPING BRITAIN PROSPER PLAN 19 November 2014 Mike Butters, Director of Investor Relations Paul Turner, Director of Sustainable Business Caroline McCarthy-Stout, Head of Responsible Business Strategy & Reporting
Slide 2: Strategy: Best bank for customers
STRATEGY Best bank for customers Lloyds Bank Bank of Scotland SIMPLE, LOW RISK, UK FOCUSED RETAIL AND COMMERCIAL BANK ICONIC AND DISTINCTIVE BRANDS MULTI CHANNEL DISTRIBUTION Halifax Scottish Widows MARKET LEADING COSTS HIGH QUALITY, COMMITTED COLLEAGUES Helping Britain prosper through our unique co
Slide 3: Financial Performance 2014 to Date
FINANCIAL PERFORMANCE 2014 TO DATE Profit and returns substantially improved and balance sheet further strengthened Income growth driven by 11% increase in net interest Income £13.9bn income (excl SJP) +3% – Net interest margin of 2.44%, up 38bps – Loan growth in key customer segments Underlying £
Slide 4: Further Strengthening the Balance Sheet
FURTHER STRENGTHENING THE BALANCE SHEET Common equity tier 1 and leverage ratios further strengthened Fully loaded common equity tier 1 ratio (%) Stronger capital position principally driven by underlying 1.0 0.2 2.4 0.2 profit and RWA reduction (0.5) 12.0 (0.9) 10.3 (0.7) Fully loaded CET1 rati
Slide 5: Strategic Focus
STRATEGIC FOCUS Strengthening our unique capabilities to respond to the changing external environment OUR BUSINESS MODEL Low cost, low risk, customer focused, UK retail and commercial bank OUR STRATEGIC PRIORITIES Creating the Becoming Delivering best customer simpler and sustainable experience more
Slide 6: Medium Term Financial Targets
MEDIUM TERM FINANCIAL TARGETS Improved shareholder returns through sustainable growth, greater efficiency and lower risk METRIC TARGETS Simplification savings £1bn of further Simplification run rate savings by end of 2017 Efficiency FTE reduction c.9,000 role reduction across 2015 – 2017 To ex
Slide 7: Governance
GOVERNANCE High standards of corporate governance Lloyds Banking Group plc Nomination Audit Board Risk Remuneration & Governance Committee Committee Committee Committee 6
Slide 8: Managing Risk
MANAGING RISK Risk management framework Accountability for ensuring risk is managed Confirmation of the effectiveness of the Risk Framework consistently with the Risk Framework approved by the Board 1a and underlying risk and control Role of the Board Board Authorities The Board and Senior Managemen
Slide 9: Re-building Trust
RE-BUILDING TRUST Doing the right thing Values Codes of Personal and Business Responsibility Culture Assessment Trust research and measurement “Trust is not a ‘nice to have’ – it is an essential part of our business success. We must continue to work together to ensure that, going forward, we
Slide 10: Helping Britain Prosper
HELPING BRITAIN PROSPER The value of a purpose driven business Our purpose : Helping Britain Prosper Our vision : to be the best bank for customers Our aim: Continuing to build safe solid foundations for the future through our low risk, efficient, UK focused retail and commercial business model.
Slide 11: Helping Britain to Prosper: What are the big issues?
HELPING BRITAIN TO PROSPER What are the big issues? First time buyers currently have to save almost 80% of their annual income to save a deposit to buy a home Britain may face a 21% property unemployment shortage of in 16-25 year nearly 1 million olds in Britain homes by 2022 99% of all British 8 mi
Slide 12: Helping Britain Prosper Plan
HELPING BRITAIN PROSPER PLAN Supporting households, businesses and communities The seven commitments We’ll help more customers get on the housing ladder – and more customers climb up it We’ll help our customers plan and save for later life We’ll take a lead in financial inclusion to enable all
Slide 13: Helping Britain Prosper Plan: Commitment 1
HELPING BRITAIN PROSPER PLAN Commitment 1 PROGRESS AGAINST TARGET: On track to meet target of over 80,000 first time buyers 60,000 new homes need to be built in Britain every year above the current level of supply to ease the country's housing shortage We have committed to a £50m equity fund n
Slide 14: Helping Britain Prosper Plan: Commitment 4
HELPING BRITAIN PROSPER PLAN Commitment 4 Lloyds up 17% £4.2bn increase Market down 13% £24.4bn contraction SME lending has continued to grow at 5% annually – by around 17% over our strategic plan period PROGRESS AGAINST TARGET: vs the market’s 13% contraction Last year we helped 120,000 SME’s s
Slide 15: Helping Britain Prosper Plan: Commitment 6
HELPING BRITAIN PROSPER PLAN Commitment 6 PROGRESS AGAINST TARGET: 930,000 volunteering hours achieved – 16% higher than end of year target £5.5m raised for our Charity of the Year – £1.3m higher than end of year target COLLEAGUE ENGAGEMENT Employee engagement index 64% Performance excellenc
Slide 16: Responsible Business Reporting
RESPONSIBLE BUSINESS REPORTING Focus going forward Strategy and vision – Helping Britain Prosper Plan Focus on ‘top tier’ material issues Regulatory requirements 15
Slide 17: Summary
SUMMARY We will help Britain prosper, whilst enhancing our customer proposition and generating strong returns for shareholders Best bank for customers Unique assets Delivering the best customer experience – Multi brand, multi channel distribution model – Strong customer franchise – Integrated in
Slide 18: Questions & Answers
LLOYDS BANKING GROUP sels QUESTIONS & ANSWERS
Slide 19: Forward Looking Statements and Basis of Presentation
FORWARD LOOKING STATEMENTS AND BASIS OF PRESENTATION FORWARD LOOKING STATEMENTS This presentation 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
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