Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Q3 2018 Earnings Presentation
10 slides from Lloyds Banking's earnings presentation, Oct 25, 2018
Slide 1: Q3 Interim Management Statement
Q3 INTERIM MANAGEMENT STATEMENT Presentation to analysts and investors | 25 October 2018
Slide 2: Strong financial performance with continued growth in profits and returns
Strong financial performance with continued growth in profits and returns Net income £13.4bn • Statutory profit after tax of £3.7bn up 18% with underlying profit up +2% 5% at £6.3bn Cost:income ratio 47.5% ‐ Net income of £13.4bn, 2% higher, with NIM stable at 2.93% (incl. remediation) (2.5)pp ‐ Cos
Slide 3: Significant strategic progress with strong start to the Group's latest strategic plan
Significant strategic progress with strong start to the Group’s latest strategic plan Transforming the Group for Strategic investment of £0.6bn in 2018 with focus on enhancing processes success in a digital world and customer experience Digitising the Group • Investment in robotics driving significa
Slide 4: Significant strategic progress: Maximising Group Capabilities – Financial Planning & Retirement
Significant strategic progress with strong start to the Group’s latest strategic plan Transforming the Group for success in a digital world Maximising Group Capabilities – Financial Planning & Retirement • Strong performance to date with Insurance & Wealth open book AuA growth ahead of plan at >£11b
Slide 5: Appendix
Appendix | | i
Slide 6: Continued growth in targeted segments while continuing to optimise the portfolio
Continued growth in targeted segments while continuing to optimise the portfolio Loans and advances (£bn) • Delivering prudent lending growth in targeted segments Q3 2018 267 41 100 37 445 - Open mortgage book in line with start of the year; continue to expect modest book growth in 2018 1 Jan - Cont
Slide 7: Low risk business model with prudent participation choices and no deterioration seen across portfolio
Low risk business model with prudent participation choices and no deterioration seen across portfolio Asset quality ratio (bps) • Gross AQR stable at 28bps despite including MBNA; net AQR up due to lower releases and write backs -10 -6 -13 • Underlying credit quality remains strong with no 28 28 28
Slide 8: Continued strong capital build
Continued strong capital build Common equity tier 1 ratio (bps) +41bps 49 8 15.5% • CET1 capital build of 41bps in Q3 and 162bps YTD 15.1% (11) (5) 14.6% • Capital build of c.200bps pre-dividend expected in 2018 and 170-200bps per year through the plan (89) ‐ Q4 benefits from final Insurance dividen
Slide 9: Creating a market leading wealth proposition for customers
Creating a market leading wealth proposition for customers Clear rationale for strategic partnership between Client Needs Mass Market two of UK’s strongest financial services businesses ‘Help me invest • Digitally enabled direct Financial Planning & my ISA Retirement offering Unique client base allo
Slide 10: Forward looking statements
Forward looking statements Forward looking statements This document contains certain forward looking statements with respect to the business, strategy, plans and /or results of the Group and its current goals and expectations relating to its future financial condition and performance. Statements tha