Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Q1 2016 Earnings Presentation
11 slides from Lloyds Banking's earnings presentation, Apr 28, 2016
Slide 1: Q1 Interim Management Statement
TITLE SLIDE IS IN SENTENCE Q1 INTERIM MANAGEMENT CASE. STATEMENT GREEN BACKGROUND. Presentation to Analysts and Investors 28 Month 00 April 2016 0000 Presenters Name
Slide 2: Highlights for the first three months of 2016
HIGHLIGHTS FOR THE FIRST THREE MONTHS OF 2016 Robust financial performance demonstrating the strength of the business model • Robust financial performance with stable underlying profit and strong underlying returns – Underlying profit of £2.1bn with an underlying return on required equity of 13.8% –
Slide 3: Financial performance – first three months of 2016
FINANCIAL PERFORMANCE – FIRST THREE MONTHS OF 2016 Robust financial performance in a challenging operating environment Q1 Q1 (£m) 2016 2015 Change • Underlying profit stable at £2.1bn, driven by Net interest income 2,906 2,829 3% – 3% improvement in NII, reflecting a margin of 2.74% Other income 1,4
Slide 4: Financial performance
FINANCIAL PERFORMANCE Good net interest income performance reflecting an improved margin, offset by lower other income Net interest income – vs. Q1 2015 (£m) Other income (£bn) 1.7 2,829 29 58 2,906 1.6 1.5 1.6 1.5 1.5 126 35 1.4 (171) Q1 Asset Liability Wholesale ECN One-off Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 5: Delivering sustainable growth
DELIVERING SUSTAINABLE GROWTH Supporting the UK economy with continued loan growth in targeted customer segments Net lending growth (£bn) Average interest earning assets (AIEAs) (£bn) YoY YoY (%) 446.5 443.2 438.7 439.2 438.2 17.0 15.8 13.2 11.4 11.0 Mortgages 2.0 1 429.5 427.4 425.5 427.8 427.2 Oth
Slide 6: Financial performance
FINANCIAL PERFORMANCE Statutory profit impacted by ECNs redemption charge and below-the-line volatility Q1 Q1 (£m) 2016 2015 • Statutory profit before tax of £0.7bn, driven by Underlying profit 2,054 2,178 – £790m charge for ECNs redemption (primarily relating to the embedded derivative) ECNs (790)
Slide 7: Balance sheet
BALANCE SHEET Strong balance sheet maintained with a CET1 ratio of 13.0% (pre dividend accrual), after impact of ECNs Common equity tier 1 ratio (%) 1.0 • CET1 ratio of 13.0% pre dividend accrual 13.6 (0.4) 13.0 (0.2) 13.0 (0.4) 12.8 • Strong underlying capital generation of (0.2) c.60bps, largely o
Slide 8: Summary
SUMMARY 2016 guidance reaffirmed • 2016 NIM expected to be around 2.70% • The Group has a clear strategic focus and a differentiated business model • Year-on-year reduction in cost:income ratio • Actively responding to market conditions • 2016 full year asset quality ratio expected • Delivering stro
Slide 9: Appendix
TITLE SLIDE IS IN APPENDIX CASE. SENTENCE GREEN BACKGROUND. 00 Month 0000 Presenters Name
Slide 10: Average interest earning assets
AVERAGE INTEREST EARNING ASSETS Ongoing business AIEAs broadly flat in 2016 AIEAs and customer loans (£bn) Q1 Q4 Q3 Q2 Q1 2016 2015 2015 2015 2015 Net loans and advances 456.7 455.2 455.0 452.3 455.1 • AIEAs are gross of impairments Impairment provisions 4.3 4.4 4.9 7.0 7.4 Non banking items • AIEAs
Slide 11: 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