Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — Q1 2015 Earnings Presentation
13 slides from Lloyds Banking's earnings presentation, May 1, 2015
Slide 1: Q1 Interim Management Statement
TITLE SLIDE IS IN SENTENCE Q1 INTERIM MANAGEMENT CASE. STATEMENT GREEN BACKGROUND. Presentation to Analysts and Investors 1 May 00 2015 Month 0000 Presenters Name
Slide 2: Highlights for the First Three Months of 2015
HIGHLIGHTS FOR THE FIRST THREE MONTHS OF 2015 Continued improvement in financial strength and performance with strong start to next phase of strategic journey • Continued improvement in financial strength and performance – Underlying profit of £2.2bn, up 21% on the first three months of 2014, with a
Slide 3: Financial Performance – First Three Months of 2015
FINANCIAL PERFORMANCE – FIRST THREE MONTHS OF 2015 Profit and returns substantially improved and balance sheet further strengthened £4.6bn • Total income increased 3% to £4.6bn Income +3% – Strong Net Interest Income performance, up 7% – Net Interest Margin increased to 2.65% Underlying £2.2bn profi
Slide 4: Supporting Our Customers and the UK Economy
SUPPORTING OUR CUSTOMERS AND THE UK ECONOMY Continued loan growth in key customer segments Net lending growth(1) (£bn) • Continued growth in mortgages; remain the largest YoY YoY (%) lender to first-time buyers Mortgages(2) 3.1 1 – £8bn gross lending in first three months; £2.2bn to first time buyer
Slide 5: Financial Performance: Net Interest Income and Other Income
FINANCIAL PERFORMANCE Strong Net Interest Income performance driven by Net Interest Margin Net interest income – YoY movement (£m) Other income (£m) 7% (6)% 46 3,021 1,718 1,730 2,811 234 114 1,612 1,623 (54) (130) 1,547 Q1 Disposals Asset Liability ECNs Wholesale Q1 Q1 Q2 Q3 Q4 Q1 2014 & run-off sp
Slide 6: Financial Performance: Costs and Impairment
FINANCIAL PERFORMANCE Continued cost discipline and a further significant reduction in impairment Total costs (£m) Impairment & AQR 0% 59% 431 2,298 26 73 13 85 2,289 327 (61) (145) 259 0.35 183 177 0.26 0.20 0.15 0.15 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015(1) Q1 Disposals Simplifi- Pay Investment
Slide 7: Financial Performance: Statutory Profit Before Tax
FINANCIAL PERFORMANCE Statutory profit before tax of £1.2bn including £660m impact of TSB sale Q1 Q1 • Asset sales and other items principally reflects (£m) 2015 2014 – A £65m charge from change in the value of ECN embedded derivative (Q1 2014: £204m gain) Underlying profit 2,178 1,800 – £105m gain
Slide 8: Balance Sheet
BALANCE SHEET Further strengthening of the balance sheet with solid capital generation and TNAV progression in the first three months Common equity tier 1 ratio (%) • CET1 ratio improved to 13.4% with increase primarily 0.9% 0.1% 13.4% driven by underlying profit 12.8% (0.2)% (0.2)% • Leverage ratio
Slide 9: Summary
SUMMARY The Group’s differentiated business model continues to deliver and we remain well positioned for further progress in 2015 • Continued improvement in financial strength and performance • Delivering sustainable growth in targeted areas • Full year guidance improved or reconfirmed – Full year n
Slide 10: Appendix
TITLE SLIDE IS IN APPENDIX CASE. SENTENCE GREEN BACKGROUND. 00 Month 0000 Presenters Name
Slide 11: Further Strengthening the Balance Sheet
FURTHER STRENGTHENING THE BALANCE SHEET Strong capital position with medium term AT1 requirement already met Capital composition(1) (%) £bn 22.6 52.9 • Strong total capital ratio of 22.6% 22.0 Tier 2 4.7 11.0 Tier 2 4.5 ECN tier 2 1.0 2.3 • Improved leverage and rating agency capital measures ECN ti
Slide 12: TSB – Creation of an Effective Challenger Bank
TSB – CREATION OF AN EFFECTIVE CHALLENGER BANK TSB sale enabling us to meet our commitment, originally agreed with the EC in 2009, ahead of mandated deadline Accounting treatment for TSB TSB is an effective challenger bank Income Statement • TSB income, expenses and impairment charges excluded from
Slide 13: 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