Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Merger or Acquisition (December 2016)
10 slides from Lloyds Banking's merger presentation, Dec 20, 2016
Slide 1: Acquisition of MBNA
TITLE SLIDE IS IN SENTENCE ACQUISITION OF CASE. MBNA GREEN BACKGROUND. Presentation to Analysts 20 December 2016 and Investors
Slide 2: Transaction Overview
TRANSACTION OVERVIEW Value generating acquisition of a prime credit card portfolio supporting our strategic goal to grow in consumer finance • £7bn prime credit card book with strong asset quality primarily operating under MBNA brand TRANSACTION • Consideration of £1.9bn: reflecting 15% premium over
Slide 3: Acquisition Rationale
ACQUISITION RATIONALE Creating shareholder value through strengthening our Consumer Finance business Best in class UK credit card business Strategic goal to grow in consumer finance • c.£16bn prime credit card portfolio(1) • Delivers sustainable growth through multi-brand strategy • Low risk portfol
Slide 4: Creating a 'Best in Class' UK Credit Card Business
CREATING A ‘BEST IN CLASS’ UK CREDIT CARD BUSINESS Low risk, customer-centric business with enhanced digital capabilities High quality customer base underpinned Customer-centric business with diversified by sound risk management distribution model • Prime customer base, with higher Demographics than
Slide 5: Supports Strategic Goal to Grow in Consumer Finance
SUPPORTS STRATEGIC GOAL TO GROW IN CONSUMER FINANCE Strengthening our customer proposition in an under-represented product area LBG market share(1) (%) Current account volumes 25 Retail deposit balances (2) 22 Mortgage balances(3) 21 Consumer cards balances 15 +MBNA 26 Lex Autolease fleet cars stock
Slide 6: Creating Significant Value for Shareholders
CREATING SIGNIFICANT VALUE FOR SHAREHOLDERS Strong financial returns supported by sizeable opportunity for synergies Overall impact on total Group revenues of c.£650m Income +£650m Enhances Group net interest margin by c.10bps per annum Potential for revenue synergies, but not currently includ
Slide 7: Transaction Funded Through Organic Capital Generation
TRANSACTION FUNDED THROUGH ORGANIC CAPITAL GENERATION Strong balance sheet and capital generation provides strategic optionality Strong capital position and ongoing Impact on capital capital generation • Expected to utilise approximately 80bps of CET1 capital on 13.9% 14.1% 14.6% 13.0% completion in
Slide 8: Appendix
TITLE SLIDE IS IN SENTENCE APPENDIX CASE. GREEN BACKGROUND.
Slide 9: Overview of MBNA Card Business
OVERVIEW OF MBNA CARD BUSINESS Efficient, customer focused, credit card business with high quality, low risk portfolio well aligned to Lloyds existing proposition MBNA Portfolio breakdown(1) • UK’s #1 mono-line credit card issuer by balances 16% • Total balances outstanding of c.£7.0bn as at Jun 201
Slide 10: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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 performance. Statements that
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