Lloyds Banking Group plc · LSE:LLOY
Lloyds Banking — Sharesoc webinar (May 2021)
17 slides from Lloyds Banking's conference presentation, May 24, 2021
Slide 1: Sharesoc Webinar - Lloyds Banking Group
SHARESOC WEBINAR LLOYDS BANKING GROUP Carla Antunes da Silva, Group Strategy, Corporate Development & Investor Relations Director Fiona Cannon OBE, Group Sustainable Business Director Douglas Radcliffe, Group Investor Relations Director 24 May 2021
Slide 2: Strategic update
Classification: Public Strategic update Carla Antunes da Silva 1
Slide 3: UK's largest financial services provider with distinctive strategy and customer focused business model
Classification: Public UK’s largest financial services provider with distinctive strategy and customer focused business model Distinctive competitive strengths • 26 million customers across our key businesses in Differentiated multi-brand, multi- Retail, Commercial Banking, Insurance & Wealth channe
Slide 4: Business transformed by our clear strategic path since 2011
Classification: Public Business transformed by our clear strategic path since 2011 GSR1 (2011-2014) GSR2 (2015-2017) GSR3 (2018-2020) Purpose Helping Britain Prosper Key Reshape our portfolio Create the best customer experience Leading customer experience strategic Simplify the Group Become simpler
Slide 5: Today's environment brings new challenges and opportunities
Classification: Public Today’s environment brings new challenges and opportunities Our core capabilities Challenges Opportunities Purpose driven, customer Restoring personal and business finances to health Taking a transformational and leading role in focused business model Helping Britain Recover I
Slide 6: Strategic Review 2021: The next evolution of our strategy
Classification: Public Strategic Review 2021: The next evolution of our strategy Our strategy – Building the UK’s preferred financial partner Our enhanced • Core purpose of Helping Britain Prosper, Our customer ambitions capabilities with focus of Helping Britain Recover at the heart of our strategy
Slide 7: Helping Britain Recover: Focused on where we can make a difference
Classification: Public Helping Britain Recover: Focused on where we can make a difference, embedded in the business Helping Britain Recover priorities Supporting our enhanced ambitions £ Help rebuild households’ >6,500 colleagues trained to support customers build their financial resilience financia
Slide 8: 2020 highlights show significant progress across our ESG ambitions
Classification: Public 2020 highlights show significant progress across our ESG ambitions Ambitious goal to help reduce emissions we finance by >50% by 2030, on path to net zero by 2050 or sooner Environmental Developed three new operational climate pledges including net zero carbon operations b
Slide 9: Strong start on delivering Strategic Review 2021
Classification: Public Strong start on delivering Strategic Review 2021 Selected examples of 2021 progress Helping Britain Recover Customer ambitions Enhanced capabilities Pay As You Grow and Recovery Preferred financial partner for Modernised technology architecture: Loan Scheme launched to support
Slide 10: Solid financial performance, ahead of expectations
Classification: Public Solid financial performance, ahead of expectations Q1 2021 £3.7bn Net income1 • Net income recovering (7)% / +2% Cost:income ratio 52.3% - NII of £2.7bn; Q1 NIM of 2.49% and AIEAs of £439bn, both ahead of our expectations (incl. remediation)1 +2.6pp / (7.6)pp - Other income of
Slide 11: Continued franchise growth
Classification: Public Continued franchise growth Q1 lending change Q1 deposit change (£bn) (£bn) Retail Commercial Retail Commercial +£4.5bn -£0.2bn +£9.5bn +£2.4bn 0.2 • Total mortgage balances up £5.4bn to £299.2bn, driven by £6bn increase in open mortgage book 4.1 • Unsecured balances down c.£1b
Slide 12: Resilient income with improved margins
Classification: Public Resilient income with improved margins Net interest margin (bps) +3bps 2 249 1 246 2 • NII of £2.7bn in line with Q4 2020 (1) • Q1 NIM of 2.49% and AIEAs of £439bn (1) Q4 2020 Structural Retail Commercial Retail Funding & Q1 2021 • 2021 NIM now expected to be in excess of 245b
Slide 13: Operating costs continue to provide competitive advantage
Classification: Public Operating costs continue to provide competitive advantage Total costs (£m) (2)% 1,964 26 19 1,916 • Total costs of £1.9bn down 2% with operating (22) costs 1% lower (49) (22) - Sustained cost discipline Q1 2020 Cost Pay & Investment Other Remediation Q1 2021 savings inflation
Slide 14: Strong asset quality and improved economic outlook resulting in impairment release
Classification: Public Strong asset quality and improved economic outlook resulting in impairment release in the quarter Total impairment costs • Asset quality strong with new to arrears stable (£m) - Retail credit experience remains benign and in line with pre-Covid levels £1,430 charge - Commercia
Slide 15: Credit quality remains strong with new to arrears stable
Classification: Public Credit quality remains strong with new to arrears stable Retail new to arrears (%) 1.2% • Observed credit experience remains benign, with 1.0% support schemes effective 0.8% 0.6% • Strong performance on Retail payment holidays with 0.4% 95% now fully matured; of which 94% repa
Slide 16: Summary - solid business momentum in Q1 with enhanced 2021 guidance
Classification: Public Summary - solid business momentum in Q1 with enhanced 2021 guidance • Helping Britain Recover: continued support for customers 2021 guidance based on Group’s current economic assumptions: • Strategic Review 2021 delivering momentum • Net interest margin now expected to be in e
Slide 17: Questions and Answers
Classification: Public Questions and Answers Carla Antunes da Silva, Fiona Cannon & Douglas Radcliffe 16