Slide 1: Q3 Interim Management Statement
TITLE SLIDE IS IN SENTENCE Q3 INTERIM MANAGEMENT CASE. STATEMENT GREEN BACKGROUND. Presentation to Analysts 25 October 2017 and Investors
Slide 2: Highlights for the first nine months of 2017
HIGHLIGHTS FOR THE FIRST NINE MONTHS OF 2017 Strong financial performance continues to demonstrate the strength of the business model • Strong financial performance with improved profit and returns on both underlying and statutory bases • Strong third quarter with income up 8% driven by organic grow
Slide 3: Delivering for customers and shareholders
DELIVERING FOR CUSTOMERS AND SHAREHOLDERS Significant strategic and financial progress in recent years Q3 income progression (£bn) • Creating the best customer experience – UK’s largest and top-ranked digital bank Retail – 13.2m online customers, 9m active on mobile 2016 2.6 1.2 0.4 4.3 Commercial B
Slide 4: Financial performance
FINANCIAL PERFORMANCE Strong underlying performance with continued improvement in profit and returns YTD YTD (£m) 2017 2016 Change • Strong Q3 performance, with NII up 12% and Net interest income 9,117 8,630 6% underlying profit up 9% Other income 4,776 4,520 6% • YTD underlying profit of £6.6bn up
Slide 5: Financial performance
FINANCIAL PERFORMANCE Total income up 6% with improvements in net interest income and other income NII and NIM vs YTD 2016 (£m) Other income YTD (£bn) 2.72% (10)bps +11bps +7bps +5bps 2.85% 247 9,117 Retail 348 8,630 351 2016 1.6 1.3 1.4 0.2 4.5 Commercial (459) Banking +6% Insurance & Wealth 2017 1
Slide 6: Asset quality
ASSET QUALITY Asset quality remains strong reflecting Group’s continued prudent approach to risk Asset quality ratio YTD (bps) • Gross AQR in line with previous years, despite single 2015 11 25 large corporate impairment in the third quarter • Net AQR for the nine months increased to 16bps, Net 2016
Slide 7: Statutory financial performance
STATUTORY FINANCIAL PERFORMANCE Significant improvement in statutory profit reflecting improvement in underlying profit and lower below the line charges YTD YTD (£m) 2017 2016 • Statutory profit after tax of £3.1bn, up 50% Underlying profit 6,567 6,073 – Market volatility and other items in 2016 inc
Slide 8: Balance sheet
BALANCE SHEET Customer balances now growing while continuing to optimise the portfolio Loans and advances (£bn) 457 • Loans and advances £455bn, up £5bn since year end 453 453 455 452 450 10 9 9 10 10 445 – Open mortgage book growth whilst still focusing on 10 9 margin; book expected to end 2017 sli
Slide 9: Balance sheet
BALANCE SHEET Capital generation very strong with 2017 guidance enhanced Common equity tier 1 ratio (%) – Jun to Sep c.85bps 0.1 0.1 0.1 14.9 14.0 0.6 14.1 • Q3 CET1 capital generation of 85bps (0.8) – Strong underlying performance – CET1 ratio of 14.9%, pre dividend Jun 2017 Under- lying RWAs Marke
Slide 10: Summary
SUMMARY Confidence in the Group’s future prospects is reflected in our financial targets • Continued strong financial performance • Focused on delivering the final stages of our – Cost discipline and low risk business model current strategic plan continue to provide competitive advantage • The Group
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