Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Investor Day (March 2024)
36 slides from Lloyds Banking's investor day presentation, Mar 20, 2024
Slide 1: Broaden our Mass Affluent and IP&I offering
Classification: Public Broaden our Mass Affluent and IP&I offering Lloyds Banking Group 20 March 2024
Slide 2: Welcome and introduction
Classification: Public Welcome and introduction Today’s presenters Agenda 1 Introduction Charlie Nunn Group Chief Executive Business update: 2 Mass Affluent Jo Harris CEO, Mass Affluent Business update: Insurance, 3 Pensions & Investments Chira Barua CEO, Insurance, Pensions & Investments (IP&I) 4 S
Slide 3: Delivering on our priorities to grow and diversify revenues
Classification: Public Delivering on our priorities to grow and diversify revenues Purpose • Broadening offering to build deeper, more valuable relationships Helping • Well-positioned to succeed, leveraging Group strengths and more Britain supportive regulatory environment • Strong growth potential,
Slide 4: A connected model to meet all consumer financial needs
Classification: Public A connected model to meet all consumer financial needs Deepening customer relationships and driving value Reporting Retail division >2.5m Mass Affluent customers Insurance Consumer Relationships Pensions & Consumer Consumer Investments Business units Relationships Lending Cons
Slide 5: Unique opportunities, confident in execution
Classification: Public Unique opportunities, confident in execution Mass Affluent Insurance, Pensions & Investments Optimising benefits of an in-house insurer Unique Delivering an enhanced proposition for an Creating innovative propositions and opportunities underserved, high-value customer segment
Slide 6: Strong growth potential
Classification: Public Strong growth potential Significant contribution to additional revenues from strategic initiatives Core franchise growth upside c.£1.5bn Further revenue upside by 2026 c.£0.1bn Consumer IP&I revenues across IP&I Consumer Mass Affluent deposits /Commercial pillars e.g. Workplac
Slide 7: Business update Jo Harris
Classification: Public Business update Jo Harris CEO, Mass Affluent 6
Slide 8: Mass Affluent overview
Classification: Public Mass Affluent overview Strong foundations Presentation focus areas Expanding in an attractive market Scale Mass Affluent customers, UK mass affluent up c.30% since FY 20211 population have at least one product with LBG Building on strong banking offering Franchise strength Ban
Slide 9: Significant market opportunity
Classification: Public Opportunity Banking Investments Digital experience Significant market opportunity Opportunity to improve customer offering Mass affluent 25% c.£1trn financial assets held by UK Meaningful Market mass affluent opportunity Assets £4trn1 75% Diverse, complex and evolving needs ac
Slide 10: Offering is complementary to broader wealth business
Classification: Public Opportunity Banking Investments Digital experience Offering is complementary to broader wealth business Clear Mass Affluent strategy Increasing focus where we have strong presence Customer Tailored banking relationships Offering Advice level proposition (#) Mass Affluent Digit
Slide 11: Well-positioned to deepen relationships and deliver value
Classification: Public Opportunity Banking Investments Digital experience Well-positioned to deepen relationships and deliver value Strong existing franchise, with scope for growth Delivering across a multi-year strategy Split of LBG Mass Affluent business1 • Defined clear view on Investment operati
Slide 12: Growing at pace, already delivering value
Classification: Public Opportunity Banking Investments Digital experience Growing at pace, already delivering value Scaling business… …with increasing engagement… …delivering value Mass Affluent initiatives launched in 2023 Monthly RMI accounts opened since ‘Save & Invest’ scaled Mass Affluent banki
Slide 13: Building upon our strong banking offering
Classification: Public Opportunity Banking Investments Digital experience Building upon our strong banking offering Significant growth opportunity Leveraging core banking strengths to support lifecycle needs Monthly revenue per customer Building upon significant current account franchise to 3x deepe
Slide 14: Compelling new propositions for Mass Affluent customers
Classification: Public Opportunity Banking Investments Digital experience Compelling new propositions for Mass Affluent customers Examples of product development: digital, personalised, value for money Delivering value Tiered rates on variable savings; rewarding balances with bespoke pricing Growth
Slide 15: Digital-first, personalised investment solutions
Classification: Public Opportunity Banking Investments Digital experience Digital-first, personalised investment solutions Attractive opportunity Increasing the reach of our investment offering Share of stocks and Working with IP&I and Embark to build D2C propositions; customers able to manage inves
Slide 16: Delivering tailored investments to increase market share
Classification: Public Opportunity Banking Investments Digital experience Delivering tailored investments to increase market share Increasing the reach of our investment offering Delivering value Compelling D2C Propositions RMI customers aged <35, with Ready-Made Investments (RMI); strong traction w
Slide 17: Driving engagement through a digital-first experience
Classification: Public Opportunity Banking Investments Digital experience Driving engagement through a digital-first experience Integrating banking, investment and retirement in leading digital proposition Delivering value Lloyds Bank 360 New proposition soft launched to 50k customers Higher RMI por
Slide 18: On track to deliver a leading Mass Affluent proposition
Classification: Public On track to deliver a leading Mass Affluent proposition 2024 delivery plan Live Q1 2024 Live Q1 2024 Investment & Lloyds Bank 360: Remortgage Digital advice in Protection needs Full rollout product mobile app finder (All customers) 2024 Lloyds Bank 360: Ready-made Goals: holis
Slide 19: Confident in delivery of financial benefits
Classification: Public Confident in delivery of financial benefits Additional Deepen andrevenues fromin Innovate Mass Affluent strategic initiatives, 20261 Consumer <10% of 2022-2024 Group strategic investment spend Example initiatives: Ready-Made Investments Ready-Made Pensions Digital Advice c.£0.
Slide 20: Business update Chira Barua
Classification: Public Business update Chira Barua CEO, IP&I 19
Slide 21: Insurance, Pensions & Investments overview
Classification: Public Insurance, Pensions & Investments overview A leading provider Presentation focus areas Unlocking our opportunity Assets under Dividends paid to Group Deferred profits Administration (AUA) since 2019 (at 31 Dec 2023)1 Strengthening accumulation Reinventing decumulation Compelli
Slide 22: Broad, capital generative business delivering diverse growth
Classification: Public Broad, capital generative business delivering diverse growth across a range of financial services products Multi-product, multi-channel offering… …generating a balanced income profile Split of IP&I income, FY 20232 Open book Closed book Accumulation Decumulation Protection Leg
Slide 23: IP&I has brilliant foundations to build from
Classification: PublicOpportunity Accumulation Decumulation Protection Delivering to Group IP&I has brilliant foundations to build from Strong market presence Broad customer base Clear brand recognition IP&I market shares, Q1 – Q3 20231 IP&I policy count by business, FY 2023 Market brand recognition
Slide 24: Executing on three fundamental pivots: Delivering a modern operating model
Classification: PublicOpportunity Accumulation Decumulation Protection Delivering to Group Executing on three fundamental pivots: 1 Delivering a modern operating model Transforming our estate and operating model… …to deliver enhanced experience and productivity New digital customer interfaces and in
Slide 25: Deepening customer relationships
Classification: PublicOpportunity Accumulation Decumulation Protection Delivering to Group 2 Deepening customer relationships Deepening relationships with Group customers… …and increasing IP&I products within the business Cross-holdings of IP&I products as at FY 2023 IP&I Primary active customers Ba
Slide 26: From a product factory to a proposition provider
Classification: PublicOpportunity Accumulation Decumulation Protection Delivering to Group 3 From a product factory to a proposition provider Embedding IP&I products into …and leveraging the same architecture for a Scottish Widows ‘customer spaces’ in the banking app… ‘Your Tomorrow’ app for Workpla
Slide 27: Accumulation: Leading with our Workplace platform
Classification: PublicOpportunity Accumulation Decumulation Protection Delivering to Group Accumulation: Leading with our Workplace platform… Banking on strong CIB relationships… …to drive strong AuA growth Workplace AuA, £bn c.13% Increasing Penetration of key penetration from banking client enhanc
Slide 28: …and building a holistic investment solution
Classification: PublicOpportunity Accumulation Decumulation Protection Delivering to Group …and building a holistic investment solution Building momentum Leveraging intermediary strength Sharedealing income, £m % of Individual Wealth market new business written by intermediaries c.250% 85% 82% 88 20
Slide 29: Decumulation: Leading with Individual Annuities
Classification: PublicOpportunity Accumulation Decumulation Protection Delivering to Group Decumulation: Leading with Individual Annuities to build a distinctive retirement proposition Growing market share Addressing ‘At Retirement’ options gap IP&I share of Individual Annuities new business1 Curren
Slide 30: Protection: Leading with Home Insurance, with Life Insurance upside
Classification: PublicOpportunity Accumulation Decumulation Protection Delivering to Group Protection: Leading with Home Insurance, with Life Insurance a significant upside Recapturing Home Insurance share Increasing Life Insurance penetration IP&I share of Home Insurance new business1 Annual Life I
Slide 31: IP&I has been a strong contributor to Group financials
Classification: PublicOpportunity Accumulation Decumulation Protection Delivering to Group IP&I has been a strong contributor to Group financials Regular dividend upstreaming Rebuilding profit contribution Insurance dividends paid to Group, £m IP&I underlying profit, £m1 IP&I contribution to Group U
Slide 32: Well-positioned for medium-term earnings growth
Classification: PublicOpportunity Accumulation Decumulation Protection Delivering to Group Well-positioned for medium-term earnings growth Realising value from growth initiatives Supporting Group income diversification IP&I underlying profit profile by proposition1 IP&I underlying profit profile by
Slide 33: Summary
Classification: Public Summary 32
Slide 34: Delivering on our priorities to grow and diversify revenues
Classification: Public Delivering on our priorities to grow and diversify revenues Purpose • Broadening offering to build deeper, more valuable relationships Helping • Well-positioned to succeed, leveraging Group strengths and more Britain supportive regulatory environment • Strong growth potential,
Slide 35: Q&A
Classification: Public Q&A 34
Slide 36: 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