Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Q3 2024 Earnings Presentation
18 slides from Lloyds Banking's earnings presentation, Nov 13, 2024
Slide 1: Investor Meet Company Q3 results webinar
Investor Meet Company Q3 results webinar Lloyds Banking Group 13 November 2024 1
Slide 2: Welcome and introduction to LBG
Classification: Public Welcome and introduction to LBG 2
Slide 3: Leading UK digital bank and integrated financial services provider
Classification: Public Leading UK digital bank and integrated financial services provider Lloyds Banking Group Plc 3 core Retail Retail Commercial divisions Insurance Consumer Pensions & Insurance Relationships Small and Investments Corporate & Pensions & Consumer Consumer Investments Business Mediu
Slide 4: Our competitive strengths differentiate our proposition
Classification: Public Our competitive strengths differentiate our proposition 1 Largest UK bank Leading UK customer franchise with deep customer insight 2 Dedicated colleagues with Total assets Active customers % relationship with UK adults strong values 3 Operating at scale with Broad offering1 di
Slide 5: Delivering our strategy is our focus
Classification: Public Delivering our strategy is our focus Purpose driven strategy… …to deliver sustainable growth across our businesses Drive revenue growth and diversification Create a new mass Deepen and innovate Grow in Consumer affluent offering Strengthen cost and capital efficiency Focus Max
Slide 6: On track to deliver interim targets
Classification: Public On track to deliver interim targets On track to deliver in 2024 Confident in 2026 Additional revenues from Additional revenues from c.£0.7bn strategic initiatives c.£1.5bn strategic initiatives c.£1.2bn Gross cost savings <50% Cost:income ratio c.13% RoTE >15% RoTE c.175bps Ca
Slide 7: Growing distributions, with increased interim dividend
Classification: Public Growing distributions, with increased interim dividend Dividend per share (p) YoY 2.76 2.40 2.00 1.84 1.60 1.33 • Strong capital generation enables growth in shareholder distributions 0.92 1.06 15% 0.67 0.80 • Interim dividend of 1.06p, 15% higher YoY 2021 2022 2023 2024 Inter
Slide 8: Business and Financial update
Classification: Public Business and Financial update 8
Slide 9: Purpose driven strategy benefitting all stakeholders
Classification: Public Purpose driven strategy benefitting all stakeholders Purpose Helping • Strategic transformation building momentum, delivering for customers Britain • Robust financial performance • Reaffirming 2024 guidance; confident in 2026 9
Slide 10: Robust financial performance
Classification: Public Robust financial performance Financial summary (£m) Q3 2024 Q3 2023 YoY Q3 Q2 QoQ YTD YTD % 2024 2024 % Net interest income 9,569 10,448 (8) 3,231 3,154 2. Other income 4,164 3,837 9. 1,430 1,394 3. Operating lease depreciation (994) (585) (70) (315) (396) 20. Net income 12,73
Slide 11: Continued growth in customer franchise
Classification: Public Continued growth in customer franchise Q3 lending increase (£bn) Q3 deposit increase (£bn) Retail Commercial Retail Commercial +£3.5bn/1% -£0.2bn/0% +£1.7bn/1% -£0.5bn/0% • Group lending £457.0bn, up £4.6bn in Q3 o Mortgages up £3.2bn in Q3 3.2 o Growth in Credit Cards and Uns
Slide 12: Income growth across NII and OOI
Classification: Public Income growth across NII and OOI Net interest income and banking margin (bps) £3.15bn £3.23bn • Q3 NII £3.2bn, up 2% QoQ 10 o NIM 295bps, up 2bps QoQ (4) (1) o Q3 AIEAs £451.1bn, up £1.7bn QoQ (3) 295 293 o Q3 non-banking NII charge £118m, stable vs. Q2 • Structural hedge noti
Slide 13: Continued cost discipline
Classification: Public Continued cost discipline Operating costs (£bn) +4% (+2% ex. accelerated severance) 0.1 0.1 0.1 0.3 7.0 6.9 • Q3 operating costs £2.3bn, stable on Q2 6.7 (0.3) • YTD operating costs £7.0bn, up 5% YoY, 4% excluding BoE levy Q3 2023 Cost Pay & Investment, Other Q3 2024 YTD BoE l
Slide 14: Strong asset quality
Classification: Public Strong asset quality Impairment (£m) Q3 2024 Q3 2023 YoY Q3 Q2 QoQ YTD YTD £m 2024 2024 £m Charge (credit) pre updated MES1 597 918 (321) 172 176 (4) Retail 592 787 (195) 129 160 (31) Commercial Banking 16 139 (123) 44 21 23 • Strong asset quality, reflected in continued resil
Slide 15: Robust RoTE, TNAV building
Classification: Public Robust RoTE, TNAV building Statutory profit (£m) Q3 2024 Q3 2023 YoY Q3 Q2 QoQ YTD YTD % 2024 2024 % Underlying profit 5,350 6,063 (12) 1,853 1,740 6 Restructuring (21) (69) 70 (6) (3) (100) Volatility and other items (182) (266) 32 (24) (41) 41 • Q3 RoTE 15.2%; YTD 14.0% Stat
Slide 16: Strong capital generation in line with expectations
Classification: Public Strong capital generation in line with expectations Risk weighted assets (£bn) 2.4 0.7 0.8 4.6 (4.3) 223.3 219.1 • Strong YTD capital generation of 132bps • RWAs £223.3bn, up £4.2bn YTD, incl. £1.3bn in Q3 Q4 2023 Underlying Credit / CRD IV1 Market risk Optimisation Q3 2024 o
Slide 17: 2024 and 2026 guidance
Classification: Public 2024 and 2026 guidance 2024 2026 Income NIM >290bps c.£9.4bn operating costs inc c.£0.1bn Costs <50% cost:income ratio BoE levy Asset quality ratio <20bps Return on tangible equity c.13% >15% Risk weighted assets £220bn - £225bn Capital generation c.175bps >200bps Capital targ
Slide 18: Q&A
Classification: Public Q&A 18