Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — FY2024 Earnings Presentation
22 slides from Lloyds Banking's earnings presentation, Mar 27, 2025
Slide 1: 2024 Results Investor meet Webinar
2024 Results Lloyds Banking Group 20th February 2025 Investor meet Webinar Lloyds Banking Group 27 March 2025 1
Slide 2: Welcome and introduction to LBG
Welcome and introduction to LBG Douglas Radcliffe, Group Investor Relations Director Tom Grantham, Senior Manager - Investor Relations
Slide 3: Leading UK digital bank and integrated financial services provider
Leading UK digital bank and integrated financial services provider Lloyds Banking Group Plc 3 core divisions Retail Retail Commercial Insurance Consumer Pensions & Insurance Relationships Investments Corporate & Pensions & Consumer Consumer Small and Medium Investments Business units Institutional R
Slide 4: Purpose-driven strategy Helping Britain Prosper
Purpose-driven strategy Helping Britain Prosper …supported by a clear strategic plan… Grow Focus Change Drive revenue growth and diversification Strengthen cost and capital efficiency Maximise the potential of people, tech and data …driving competitive advantage… Market leader Proven cost leader Dig
Slide 5: Successfully delivered 2022-2024 strategic outcomes
Successfully delivered 2022-2024 strategic outcomes Significant financial benefits... ...through delivery of strategic outcomes c.£2bn 11% c.25% +1.5pp Grow Net income OOI CAGR across Growth in digitally active users Increase in credit card spend share growth 3 main divisions Target: >10% Target: Gr
Slide 6: Financial Update
LLOYDS BANKING GROUP Financial Update
Slide 7: Significant strategic progress, building momentum
Significant strategic progress, building momentum Purpose-led strategy delivering for customers and wider stakeholders Purpose Helping First strategic chapter successfully completed, building broad momentum Britain Robust financial performance in line with guidance Prosper Strong capital generation,
Slide 8: Robust financial performance
Robust financial performance Financial performance (£m) FY FY YoY Q4 Q3 QoQ 2024 2023 % 2024 2024 % Net interest income 12,845 13,765 (7) 3,276 3,231 1 Other income 5,597 5,123 9 1,433 1,430 - • Statutory PAT £4.5bn; RoTE 12.3%; 14.0% excl. motor Operating lease depreciation (1,325) (956) (39) (331)
Slide 9: Growth in lending and deposits
Growth in lending and deposits Q4 lending change (£bn) Q4 deposit change (£bn) Retail Commercial Retail Commercial +£2.9bn/+1% -£0.3bn/-0% +£4.7bn/+1% +£1.9bn/+1% (+£ 3.9bn excl. securitisation) 0.7 • Lending £459.1bn, up 2% in 2024, Q4 up £2.1bn o Q4 mortgages up £2.2bn, £3.2bn excl. securitisation
Slide 10: Resilient income performance
Resilient income performance Banking net interest margin (bps) Q3 ‘24 – Q4 ‘24 295 (1) 7 (5) 1 297 20 - 311 • 2024 NII £12.8bn, down 7% YoY, Q4 up 1% (15) (21) 295 295 o Growth in NII and NIM in H2; Q4 NII up after Q3 upturn • New NII guidance for 2025 of c.£13.5bn, c.£0.7bn higher than 2024 2023 De
Slide 11: Continued discipline on costs
Continued discipline on costs Operating costs (£bn) +3% (+2% excl. BoE charge) 0.1 0.2 9.4 • 2024 operating costs £9.4bn, delivered guidance; reflects 0.1 9.3 0.3 BoE charge, strategic investment, inflation and cost saves 9.1 • 2024 cost:income 60.4%; 55.2% excl. remediation (0.4) • Expect 2025 oper
Slide 12: Strong asset quality
Strong asset quality Impairment (£m) Q4 2024 2023 YoY Charge (credit) pre updated MES1 230 827 565 (46)% Retail 197 789 1064 26% Commercial Banking 32 48 (487) - • Strong asset quality, with improved credit performance Other 1 (10) (12) (17)% • 2024 impairment charge £433m, AQR 10bps Updated economi
Slide 13: Strong distributions, with increased final dividend
Strong distributions, with increased final dividend Dividend per share (p) YoY +59% 3.17 2.76 2.40 • Strong capital generation enables growth in shareholder 2.00 distributions 2.11 1.84 1.33 1.60 15% • Capital return of up to £3.6bn, c.9% market cap2 1.06 o Final dividend 2.11p; total 3.17p, up c.15
Slide 14: Strategy Update
LLOYDS BANKING GROUP Strategy Update
Slide 15: Second phase of strategy will accelerate our transformation
Second phase of strategy will accelerate our transformation Building on clear competitive ...with momentum across ...accelerating transformation advantages... 2022-24... across 2025-26 Market leader Returned to growth Differentiated growth #1 in key markets Growing core franchise Growing in high-val
Slide 16: Ambitious targets across the business
Ambitious targets across the business Retail Commercial IP&I 28m #1 #1 >1m c.20% #1 10m #1 #2 Customers Mortgages Personal current Customers SME rel’ship Infrastructure & Customers Home Workplace and accounts share project finance insurance individ’l annuities Deepening relationships through Buildin
Slide 17: Progressing towards a technology step change
Progressing towards a technology step change Addressing technology debt... ...and investing for the future Decommissioning legacy applications Increasing new technology adoption 20% reduction in legacy technology applications by >30% of applications on modern technology by 2026 2026 (vs. 2021) Drivi
Slide 18: Significant revenue upside to 2026
Significant revenue upside to 2026 Delivering net income growth to 2026... ...supported by Net income (£bn) strategic revenues >£1.5bn additional revenues from strategic initiatives £0.8bn by 2024 >£0.7bn incremental to 2026 >£0.1bn IP&I c.£2.7bn hedge uplift (+£1.2bn YoY FY25, +£1.5bn YoY FY26) mat
Slide 19: Confidence in delivering higher, more sustainable returns
Confidence in delivering higher, more sustainable returns 2025 2026 Income NEW: NII c.£13.5bn Costs NEW: c.£9.7bn operating costs <50% cost:income ratio Asset quality ratio NEW: c.25bps Return on tangible equity NEW: c.13.5% >15% Capital generation NEW: c.175bps >200bps CET1 ratio target Expect to p
Slide 20: Lloyds Banking Group
LLOYDS BANKING GROUP
Slide 21: Investor relations contacts
Investor relations contacts Douglas Radcliffe, Group Investor Relations Director Sarah Robson, Senior Manager, Investor Relations +44 (0)20 7356 1571 +44 (0)7494 513 983 Douglas.Radcliffe@lloydsbanking.com Sarah.Robson2@lloydsbanking.com Nora Thoden, Director, Investor Relations – ESG Tom Grantham,
Slide 22: Disclaimer
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 Presentation does not pur