Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — H1 2010 Earnings Presentation
71 slides from Lloyds Banking's earnings presentation, Aug 4, 2010
Slide 1: 2010 Interim Results
2010 INTERIM RESULTS 4 August 2010 Eric Daniels Group Chief Executive
Slide 2: A Strong and Growing Business
A STRONG AND GROWING BUSINESS FIRST HALF OVERVIEW AND CONTEXT BUILDING SUSTAINABLE GROWTH
Slide 3: First Half Business Highlights
FIRST HALF BUSINESS HIGHLIGHTS Continued good progress Strong first half profit of £1.6 billion(1); statutory profit of £1.3 billion – Continued to build positive momentum across all key line items Strong growth in customer relationship businesses – Further deepening relationships Integration
Slide 4: Divisional Performance
DIVISIONAL PERFORMANCE Profit of £2,495 million Income up 18% Operating expenses down 5% RETAIL Asset quality ratio improved to 72bps Customer deposit growth of £6.6 billion 880,000 new current accounts and 2.6m new savings accounts £14.9 billion gross new mortgage lending Profit of
Slide 5: Divisional Performance
DIVISIONAL PERFORMANCE Loss of £1,609 million Income up 4% WEALTH & Operating expenses down 3% INTERNATIONAL Impairments up 52% Customer deposit growth of £1.3 billion 13,000 new UK private banking customers Profit of £469 million Income down 10% INSURANCE Operating expenses down 1
Slide 6: Strong Performance on Integration
STRONG PERFORMANCE ON INTEGRATION On track to deliver £2 billion target MAJOR PROGRAMMES H1 2010 2011 £m Run-rate Run-rate Run-rate £m 2,000 Organisational design 480 600 Systems and c.1,300 processes 360 900 1,084 766 Property consolidation 64 160 Procurement 180 340 Dec H1 End End Total 2009 2010
Slide 7: Guidance
GUIDANCE Performing in line with, or better than, our guidance GUIDANCE H1 2010 TREND(1) High single digit growth REVENUE GROWTH within 2 years 9 Margin expected to MARGINS increase to c.2% 99 c.200 pa basis points COST:INCOME RATIO improvement 99 Run rate savings of INTEGRATION BENEFITS £2 billion
Slide 8: A Strong and Growing Business
A STRONG AND GROWING BUSINESS FIRST HALF OVERVIEW AND CONTEXT BUILDING SUSTAINABLE GROWTH
Slide 9: Economic Outlook
ECONOMIC OUTLOOK Gradual recovery remains the most likely scenario GDP GROWTH IN CENTRAL SCENARIO NEAR TERM IMPACT % change on year earlier House prices 0% in 2010 2.7 2.7 2.6 2.1 +3% in 2011 1.3 Commercial property values +6% in 2010 (0.1) +2% in 2011 Company failures Peak in 2010
Slide 10: External Backdrop
EXTERNAL BACKDROP Challenging environment Markets – Sovereign risk and bank funding markets Prudential regulation – Basel III and Solvency II – Stress testing New regulatory structures – Role of the Bank of England and the Consumer Protection and Markets Authority – European changes External
Slide 11: The Building Blocks for a Strong Business
THE BUILDING BLOCKS FOR A STRONG BUSINESS Driving customer value, earnings, capital and returns Value SUSTAINABLE GROWTH creation Efficiency, effectiveness Customer value Deep relationships Quality market share PROFITABILITY Complete integration Drive elements of profit model CONTROL L
Slide 12: Delivering Sustainable Growth: How We Will Create Value
DELIVERING SUSTAINABLE GROWTH How we will create value A UNIQUE …DESIGNED TO DELIVER …DRIVING LONG TERM BUSINESS MODEL… CUSTOMER VALUE… SHAREHOLDER VALUE Industry-leading efficiency and Better customer effectiveness understanding Stronger growth Better product Lower risk alignment to need
Slide 13: Delivering Sustainable Growth: How We Will Measure Progress
DELIVERING SUSTAINABLE GROWTH How we will measure and report progress BUSINESS MODEL CUSTOMER VALUE SHAREHOLDER VALUE METRICS METRICS METRICS Operating leverage Cost:income Investment levels Net promoter score Loss ratios (customer Return on equity satisfaction) + Service quality EPS
Slide 14: Our Longer Term Guidance
OUR LONGER TERM GUIDANCE Linking our strategy to our financials STRATEGY EXPECTED RESULT Relationship deepening Growth 6-7%(1) REVENUE GROWTH Appropriate pricing for risk Margin above 2.5% Integration Cost:income ratio c.40% EFFICIENCY Operating leverage Investment in growth Effici
Slide 15: Summary
SUMMARY Building sustainable growth A strong first half – £1.6 billion profit(1) – Continued momentum across the business Putting in place the building blocks for a strong business – Control – Profitability – Growth Building the UK’s most customer-focused franchise – Using our efficiency and e
Slide 16: 2010 Interim Results – Group Finance Director
2010 INTERIM RESULTS 4 August 2010 Tim Tookey Group Finance Director
Slide 17: Delivering Earnings Momentum, Balance Sheet and Capital Strength
DELIVERING …… EARNINGS MOMENTUM BALANCE SHEET AND CAPITAL STRENGTH A STRENGTHENED FUNDING POSITION SUMMARY
Slide 18: Delivering Earnings Momentum
DELIVERING EARNINGS MOMENTUM Strong growth in relationship businesses – Resilient revenue performance – Strong cost performance – Cost synergies on track Delivered strong first half profitability Lending portfolios performing very well – Significant decrease in Group impairment levels Strong
Slide 19: Business Performance
BUSINESS PERFORMANCE £m H1 2009 H1 2010 % Change Income(1) 11,939 12,481 9 5% Margin 1.72% 2.08% 9 Operating Expenses (5,718) (5,435) 9 (5%) Impairments (13,399) (6,554) 9 (51%) Profit before tax(2) (3,957) 1,603 9 Core Tier 1 6.3% 9.0% 9 The Group has delivered a strong performance in the first hal
Slide 20: Improving Divisional Performance
IMPROVING DIVISIONAL PERFORMANCE Return to profitability Profit before tax (£m)(1) H1 2009 H2 2009 H1 2010 Retail 360 1,022 2,495 Wholesale (3,208) (1,495) 742 Wealth and International (342) (2,014) (1,609) Insurance 397 578 469 Group Operations (1,164) (434) (494) and Central items (3,957) (2,343)
Slide 21: Revenue Trends
REVENUE TRENDS Good income growth +8% NII + 7% OOI + 8% 12,481 11,939 192 102 227 12,058 11,194 (126)(1) 423 745 5,147 5,570 5,497 4,752 1,154 (232) (453) 6,911 6,911 6,442 6,442 09/H1 Liability U/L Banking Volume Non FV on Asset Insurance Other U/L Liability 10/H1 Mgmt 09/H1 Margin Impact Banking E
Slide 22: Net Interest Margin
NET INTEREST MARGIN Strong margin performance with continued asset repricing Average Interest Earning Assets: £677bn £645bn 28bp 1bp 2.08% 15bp 4bp 1.83% (4)bp 1.72% (8)bp H1 2009 Asset Deposit Wholesale H2 2009 Asset Deposit Wholesale H1 2010 pricing spread Funding pricing spread Funding costs cost
Slide 23: Banking Net Interest Margin
BANKING NET INTEREST MARGIN Over time, Group can return to generating margins over 2.5% BASE RATE Slow and steady rises expected from Q1 2011 Rate reaches c.4% in 2014 ASSET Repricing activity continues – majority already captured PRICING Proportion of mortgages on SVR to increase from 45% t
Slide 24: Drivers of Future Income
DRIVERS OF FUTURE INCOME Balanced elements of income growth NET INTEREST INCOME OTHER OPERATING INCOME NII grows over time reflecting: Relationship banking strategy drives cross sell opportunities – Margin expected to reach over 2.5% by c.2014 Sustainable profitable growth in – AIEA falling du
Slide 25: Cost Performance
COST PERFORMANCE Continued strong cost control £m (5)% 5,718 201 5,435 140 (91) (543) H1 2009 Operating Cost Investment BAU H1 2010 Operating lease synergies Operating Expenses depreciation Expenses Continued strong cost control and delivery of investment and synergy programmes
Slide 26: Synergy Progression
SYNERGY PROGRESSION Strong delivery of synergy programmes RUN RATE £m 2,000 Performed strongly in 2010 and integration benefits on c.1,300 track to deliver the 2011 1,084 target 766 Benefits so far driven by non-IT dependent initiatives £99 million procurement savings realised in the first Dec
Slide 27: Target Cost:Income Ratio
TARGET COST : INCOME RATIO Synergy and efficiency programmes allow for investment expenditure COST : INCOME RATIO (%) 57.3 51.7(2) 45.1(2) 48.4(1) c.40% 43.5(1) 2008 2009 H1 2010 2014 Cost : income ratio to reduce to c.40% by 2014 (1) Reported C:I ratio (2) Excluding gains from liability management
Slide 28: Impairments – Ahead of Recent Guidance
IMPAIRMENTS – AHEAD OF RECENT GUIDANCE Overall charges 51% lower than last year’s peak GROUP RETAIL All divisions contributing to significant Significant reduction in secured and reduction in impairment charges unsecured impairments Asset disposals being achieved within Improving asset quali
Slide 29: Impairments – Ahead of Recent Guidance
IMPAIRMENTS – AHEAD OF RECENT GUIDANCE Overall charges 51% lower than last year’s peak WHOLESALE WEALTH & INTERNATIONAL Largest reductions are in corporate real Reduction achieved in Irish impairments estate and real estate related portfolios Peak still believed to be H2/09 Traditional busin
Slide 30: Non-Performing Loans
NON-PERFORMING LOANS Positive trends following expected patterns RETAIL WHOLESALE WEALTH & INTERNATIONAL 48.9% 48.3% Coverage 46.4% ● 44.4% Ratio %(1) 40.5% 39.4% 34.6% 33.9% ● 31.6% ● 35.1 36.8 31.7 15.6 11.4 12.7 Impaired 11.0 10.5 Loans 5.9 (£bn) H1/09 H2/09 H1/10 H1/09 H2/09 H1/10 H1/09 H2/09 H1
Slide 31: Improving Asset Quality
IMPROVING ASSET QUALITY Conservative provisions and improving asset quality GROUP ASSET QUALITY RATIO 347 bps 302 bps ● 201 bps 50-60 bps H1/09 H2/09 H1/10 c.2014(1) Target normalised AQR range of 50-60(1) bps (1) Core business, mix dependant, base economic scenario, c.2014
Slide 32: Insurance – Solid Performance from Well Targeted Participation
INSURANCE – SOLID PERFORMANCE FROM INCREASINGLY WELL TARGETED PARTICIPATION Capital intensity reduced Significantly improved new business profitability from lower PVNBP Strict product and channel choices underpinned by Ongoing IRRs improved to over 15% clear strategic choices EEV margin 3.4%
Slide 33: Delivering Earnings Momentum, Balance Sheet and Capital Strength
DELIVERING …… EARNINGS MOMENTUM BALANCE SHEET AND CAPITAL STRENGTH A STRENGTHENED FUNDING POSITION SUMMARY
Slide 34: Reducing Balance Sheet
REDUCING BALANCE SHEET Banking balance sheet reduction continues as planned Banking assets less cash(1) £bn 848 727 704 300 240 217 2008 2009 2010H1 Non-relationship assets subject to reduction Banking balance sheet reduction from asset disposals(2), customer repayment and impairment, partially offs
Slide 35: Good Progress on Asset Reductions
GOOD PROGRESS ON ASSET REDUCTIONS On target to achieve £200 billion asset run-off £bn 300 23 Treasury assets 100 240 217 70 61 Commercial Real Estate 47 37 35 Other Wholesale 72 100 62 56 International 45 c.20 for 38 33 each portfolio Retail(1) 36 33 32 2008 2009 2010H1 2014 Target Balance sheet red
Slide 36: Good Progress on Asset Reductions
GOOD PROGRESS ON ASSET REDUCTIONS £83 billion asset reduction since end 2008 £bn 300 83 240 217 (4) (9) (2) (5) (3) 2008 2009 Impairments Treasury Retail Wholesale International 2010H1 assets Good progress on balance sheet reduction in more difficult conditions than the second half of 2009
Slide 37: Maintaining a Strong Capital Position
MAINTAINING A STRONG CAPITAL POSITION Reducing our risk-weighted assets RWAs (£bn) 493.3 Reduction driven by asset sales 463.2 and reduction in procyclicality Further risk-weighted asset reductions expected over next few years: – Further asset reduction – Improving economic conditions December J
Slide 38: A Strong Capital Position
A STRONG CAPITAL POSITION Improving quality and quantity of capital Core Tier 1 ratio (%) 0.6% 9.0% 0.5% 8.1% (0.2)% Core tier 1 ratio including ECNs would be 10.5% Improved quality of capital base including Basel III mitigation Return to profitability accelerates deferred tax asset consumptio
Slide 39: Update on Basel III
UPDATE ON BASEL III Basel Committee’s consultative proposals February 2010 July 2010 Regulatory capital required Calibration and Expected 2010 H2 transition outstanding Raising the quality of the capital base Remove insurance capital from - Allow up to 10% of equity core tier 1 capital - Insurance c
Slide 40: Delivering Earnings Momentum, Balance Sheet and Capital Strength
DELIVERING …… EARNINGS MOMENTUM BALANCE SHEET AND CAPITAL STRENGTH A STRENGTHENED FUNDING POSITION SUMMARY
Slide 41: Reducing Our Wholesale Funding Requirements
REDUCING OUR WHOLESALE FUNDING REQUIREMENTS Total wholesale funding declining WHOLESALE FUNDING MATURITY PROFILE WHOLESALE FUNDING £311bn £bn Less than 1 year (9)% Primary £160bn liquid asset 343 coverage(1) 326 311 151 > 1 yr 164 44% 151 50% 49% 192 162 160 < 1 yr > 5 years 1–2 years 56% 50% 51% £4
Slide 42: Reducing Our Wholesale Funding Requirements
REDUCING OUR WHOLESALE FUNDING REQUIREMENTS Maintaining broad spread of wholesale funding £bn Dec 2009 June 2010 Bank deposits(1) 49 48 Good relationship customer deposit growth (£12 billion), Certificates of deposit 51 40 partially offset by lower Medium-term notes 90 89 overnight institutional d
Slide 43: Successful Term Issuance
SUCCESSFUL TERM ISSUANCE Utilising a wide variety of funding products and sources H1 TERM ISSUANCE H1 TERM ISSUANCE TERM ISSUANCE BY PRODUCT BY CURRENCY Expected public term issuance of c.£20-25 billion per annum over next 3 years Lower Tier 2 OTHER Tier1 13% 3% 7% c.£18 billion of 2010 term GBP
Slide 44: Funding Summary
FUNDING SUMMARY Executing a broad funding strategy Reduced absolute level of wholesale funding 9 Reducing reliance on short-term funding 9 Good deposit growth 9 Substantial liquid asset buffer maintained at £84 billion 9 Reduced Government and central bank support by £25 billion 9 Comple
Slide 45: Delivering Earnings Momentum, Balance Sheet and Capital Strength
DELIVERING …… EARNINGS MOMENTUM BALANCE SHEET AND CAPITAL STRENGTH A STRENGTHENED FUNDING POSITION SUMMARY
Slide 46: Summary Slide
SUMMARY SLIDE Delivering on our promises Income up, costs down, impairments significantly reduced 9 Realising earnings potential of core business 9 Non-relationship assets being run down for value over time – reducing capital intensity of, and volatility in, the balance sheet 9 Funding and l
Slide 47: Appendix
APPENDIX LLOYDS BANKING GROUP ae
Slide 48: Loans and Advances to Customers
LOANS AND ADVANCES TO CUSTOMERS LOANS AND ADVANCES TO CUSTOMERS £628.8 BILLION(1) 30 June 2010 Financial, business & other services 10.4% Property companies 12.8% Personal other 5.9% Construction 1.6% Manufacturing 2.1% Personal mortgages 57.3% Corporate other 0.8% Agriculture, forestry & fishery 0.
Slide 49: Mortgage Portfolio
MORTGAGE PORTFOLIO UK MORTGAGE PORTFOLIO £344.2 BILLION 30 June 2010 Specialist £30.5bn Prime £268.4bn Buy to let £45.3bn
Slide 50: Mortgage Portfolio LTVs
MORTGAGE PORTFOLIO LTVs (1) Mainstream Buy to let Specialist Group Average LTVs 50.1% 73.1% 70.6% 53.7% New business LTVs 59.3% 66.4% n/a (2) 60.3% <= 80% LTV 65.0% 48.8% 45.4% 61.1% > 80–90% LTV 14.8% 18.7% 21.2% 15.9% > 90–100% LTV 11.4% 21.8% 19.8% 13.5% > 100% LTV 8.8% 10.6% 13.5% 9.5% Value > 1
Slide 51: Mortgage Portfolio
MORTGAGE PORTFOLIO 30 June 10 30 June 09 Portfolio >100% >100% >100% £344bn LTV LTV LTV and >3 months and >3 months in arrears in arrears Specialist £30.5bn 8.8% £4.1bn (13.5%) £0.6bn (1.9%) £1.0bn (3.1%) Buy to let £45.3bn 13.2% £4.8bn (10.6%) £0.5bn (1.1%) £0.7bn (1.7%) Mainstream £268.4bn 78.0% £
Slide 52: Mortgage Arrears Trends
MORTGAGE ARREARS TRENDS % of total cases >3 months in arrears 8% 7% 6% 5% 4% Market 3% 2.2%(2) 2% 1% 0% Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 CML total market (1) Mainstream Specialist Buy to Let (1) Source: Council of Mortgage Lenders (2) CML Q1 10 Note
Slide 53: Trend in Mortgage Portfolio Arrears
TREND IN MORTGAGE PORTFOLIO ARREARS CUSTOMERS NEW TO ARREARS Volume ‘000s 160 144 131 128 129 H1 08 H2 08 H1 09 H2 09 H1 10
Slide 54: Mortgage Portfolio – Properties in Possession
MORTGAGE PORTFOLIO – PROPERTIES IN POSSESSION Properties in possession New possessions (% of total mortgage cases) (% of total mortgage cases) 0.13% 0.09% 0.07% 0.10% CML Lloyds CML Lloyds average(1) Banking average(1) Banking Group Group 31 Mar 2010 30 Jun 2010 31 Mar 2010 30 Jun 2010 (1) Council o
Slide 55: Mortgage Portfolio – Properties in Possession
MORTGAGE PORTFOLIO – PROPERTIES IN POSSESSION PROPERTIES IN POSSESSION % of mortgage cases Peaked in 2008 Q3 0.13% 0.15% Lloyds Banking Group 0.10% 0.05% 0.00% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
Slide 56: Mortgage Portfolio – New Possessions
MORTGAGE PORTFOLIO – NEW POSSESSIONS NEW POSSESSIONS % of total cases 0.09% 0.09% 0.06% 0.07% CML(1) LBG CML(2) LBG 31 Dec 2009 31 Mar 2010 30 Jun 2010 (1) Source: Council of Mortgage Lenders (2) Source: Council of Mortgage Lenders Q1 2010
Slide 57: Unsecured Lending Portfolio
UNSECURED LENDING PORTFOLIO UNSECURED PORTFOLIO £30.1 BILLION 30 June 2010 Other £0.2bn Credit cards £11.8bn Personal Current Accounts £2.7bn Loans £15.4bn Cards Loans Impairment charge as a % of average lending 9.5% 6.3%
Slide 58: Loans and Advances to Corporate Customers
LOANS AND ADVANCES TO CORPORATE CUSTOMERS LOANS AND ADVANCES TO CORPORATE CUSTOMERS £231.7 BILLION(1) 30 June 2010 Transport Post and communications distribution and 0.7% hotels 14.9% Construction Property 4.5% companies 34.7% Manufacturing 5.7% Energy and water supply 1.4% Agriculture, forestry and
Slide 59: Commercial/Residential Property & Housebuilder Lending
COMMERCIAL/RESIDENTIAL PROPERTY & HOUSEBUILDER LENDING £87.5bn Lloyds Banking Group UK Lloyds Banking Group Overseas (1) 70% 30% £61.2bn £26.3bn Gross (pre FV adjustment and impairment) Includes debt formerly managed in HBOS Joint Ventures (1) Includes lending to non UK residents, and excludes resid
Slide 60: UK Commercial/Residential Property & Housebuilder Lending
UK COMMERCIAL/RESIDENTIAL PROPERTY & HOUSEBUILDER LENDING Commercial property (£40.3bn) Residential property (£17.5bn) Through the cycle policy, £61.2bn 54% Housing Associations supporting existing customer (local authority cash flows) franchise Larger residential property Some concentration
Slide 61: Overseas Property Lending
OVERSEAS PROPERTY LENDING (1) Ireland (£11.1bn) Australia (£6.2bn) 54% Property Investment, of 35% Property Investment, of which 45% is impaired £26.3bn which 18% is impaired 46% Property Development, of 54% Property Development, of which 90% is impaired which 40% is impaired 11% Property
Slide 62: Leveraged Finance Lending
LEVERAGED FINANCE LENDING Lloyds TSB Acquisition Finance (£5.0bn) HBOS Leveraged Finance (£8.2bn) A highly selective origination £16.2bn Includes loans and advances strategy transferred from HBOS Integrated Finance business during 2009 Well spread by sector Well spread by sector Predominan
Slide 63: Risk Capital Portfolio at Carry Value
RISK CAPITAL PORTFOLIO AT CARRY VALUE (1) MANAGE FOR GROWTH MANAGE FOR VALUE Lloyds Development Capital (£1.3bn) Fund Investments (£1.6bn) Ongoing direct equity business Generally, Limited Partner Investments in being managed for growth £4.0bn (2) private equity funds; well diversified underlyin
Slide 64: Treasury Debt Securities Portfolio
TREASURY DEBT SECURITIES PORTFOLIO Loans and Available Fair Value Total 30.06.10 Advances (£bn) for sale (£bn) through P&L (£bn) (£bn) Asset Backed Securities 26.2 10.7 1.3 38.2 Covered bonds - 3.5 - 3.5 Bank / Financial Institution 1.1 12.2 2.3 15.6 Fixed and Floating Rate Notes Bank Certificate of
Slide 65: Asset Backed Securities Portfolio
ASSET BACKED SECURITIES PORTFOLIO Net exposure Carry Value as at 30.06.2010 (£bn) 30.06.2010 (%) Mortgage Backed Securities - US RMBS 4.5 52 - Non-US RMBS 8.8 93 - CMBS 3.6 83 16.9 75 Collateralised Debt Obligations - Corporate 0.1 89 - Commercial Real Estate 0.4 55 - CLO 5.0 90 - Other 0.2 29 5.7 8
Slide 66: Impairment Losses on Loans and Advances to Customers
IMPAIRMENT LOSSES ON LOANS AND ADVANCES TO CUSTOMERS Impairment 2009 H1 2010 H1 % of Average lending £m £m 2009 H1 2010 H1 Retail 2,188 1,335 1.15 0.72 – Secured (mortgages) 591 53 0.34 0.03 – Unsecured 1,597 1,282 9.06 8.27 Wholesale 8,343 2,937 6.87 2.85 Wealth and International 1,461 2,227 4.55 6
Slide 67: Impaired Asset Ratios – Group
IMPAIRED ASSET RATIOS – GROUP 2010 Retail Wholesale Wealth & Int’l Group Loans and advances to customers (gross) £374.2bn £205.2bn £65.0bn £645.8bn Impaired assets £10.5bn £36.8bn £15.6bn £62.9bn Impaired assets as % of closing balance 2.8% 17.9% 24.0% 9.7% Impairment provisions £3.6bn £17.8bn £6.9b
Slide 68: Good Progress on Value Enhancing Asset Rundown
GOOD PROGRESS ON VALUE ENHANCING ASSET RUNDOWN Disposed Asset Vs. mark Insight Investment 9 Halifax Estate Agents; Portfolio of investment businesses; & HBOS Employee Equity Solutions 9 70% stake in esure 9 Bank of Scotland Integrated Finance portfolio 9 Commercial Real Estate 9 Mortgages n/a Treasu
Slide 69: Fair Value Unwind
FAIR VALUE UNWIND £bn 6.1 c2.5 c2.0 c1.3 c0.3 2009 2010 2011 2012 2013 Further fair value unwind through 2013
Slide 70: Net Tangible Assets
NET TANGIBLE ASSETS NET TANGIBLE ASSETS (£BN) NET TANGIBLE ASSETS PER SHARE (P) 1.4 0.8 60.0 58.1 (0.3) 1.0 0.6 40.9 37.1 2.2 31 Dec Exchange 2010 Other 30 Jun 31 Dec Exchange 2010 Other 30 Jun 2009 offers Earnings 2010 2009 offers Earnings 2010 impact impact
Slide 71: Forward Looking Statements
FORWARD LOOKING STATEMENTS This announcement contains forward looking statements with respect to the business, strategy and plans of the Lloyds Banking Group, its current goals and expectations relating to its future financial condition and performance. Statements that are not historical facts, incl