Lloyds Banking Group plc · LSE:LLOY
Lloyds Banking — Goldman Sachs Financials Conference 2015
19 slides from Lloyds Banking's conference presentation, Jun 17, 2015
Slide 1: Goldman Sachs Financials Conference
TITLE SLIDE IS IN GOLDMAN SACHS FINANCIALS CONFERENCE SENTENCE CASE. George Culmer, Chief Financial Officer GREEN BACKGROUND. Andrew Bester, Chief Executive Officer, Commercial Banking 00 Month 0000 17 June 2015 Presenters Name
Slide 2: Agenda
AGENDA George Culmer Our differentiated business model Chief Financial Officer Andrew Bester Commercial Banking update Chief Executive Officer, Commercial Banking George Culmer Summary Chief Financial Officer 1
Slide 3: Strategy
STRATEGY Best bank for customers Lloyds Bank Bank of Scotland Simple, low risk, UK focused retail and commercial bank Market leading distribution and cost position Halifax Scottish Widows Creating sustainable value for shareholders and customers Delivering sustainable growth Helping Britain prosper
Slide 4: Delivery of strategy has transformed the business
DELIVERY OF STRATEGY HAS TRANSFORMED THE BUSINESS We have significantly strengthened our capital and leverage ratios together with improving our loan deposit ratio Fully loaded CET1 & leverage ratios Run-off assets (£bn) Leverage 3.2 3.2 3.8 4.9 5.0 ratio (%) 12.8% 13.4% 194 10.3% 141 8.1% 98 7.1% 6
Slide 5: Delivery of strategy has transformed the business
DELIVERY OF STRATEGY HAS TRANSFORMED THE BUSINESS Significantly improved financial performance and better customer satisfaction with market leading cost position Market leading cost:income ratio (%) Impairment (£m) & AQR (%) 70 68 67 10,952 9,787 58 50(1) 2.01% 5,697 1.62% 3,004 1.02% 1,200 0.57% 0.
Slide 6: 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 7: Strategic focus
STRATEGIC FOCUS Strengthening our unique capabilities to respond to the changing external environment Creating the best Becoming simpler Delivering customer experience and more efficient sustainable growth • Seamless multi-channel • Re-engineer and simplify • Maintain market leading distribution acr
Slide 8: Financial targets
FINANCIAL TARGETS Guidance reflects confidence in the future • 2015 full year net interest margin now expected to exceed original guidance of around 2.55% • Expect other income to be broadly stable in 2015 • 2015 full year asset quality ratio now expected to be around 25 basis points • Targeting cos
Slide 9: Agenda
AGENDA George Culmer Our differentiated business model Chief Financial Officer Andrew Bester Commercial Banking update Chief Executive Officer, Commercial Banking George Culmer Summary Chief Financial Officer 8
Slide 10: Commercial Banking
COMMERCIAL BANKING A low risk, UK-focused division offering sustainable returns and a key engine of growth for Lloyds Banking Group • ~110k SME clients, ~4,100 Mid Markets clients • Global Corporates and Financial Institutions support >80% of the FTSE 100 • Relationships with >80% of FTSE 250 • >95%
Slide 11: Commercial Banking: Investor day April 2013 - what we said
COMMERCIAL BANKING Investor day April 2013 - what we said Vision & strategy • Income growth – Normalisation of funding costs STRENGTHEN Robust capital, – Strategic Investments in product capability liquidity and risk profile – Franchise growth in SME / Mid-Markets Supports UK business • Cost control
Slide 12: Commercial Banking: What we did
COMMERCIAL BANKING What we did 2013 2014 2015 Restructuring Positioning for Growth Delivering Franchise Growth • Commercial Banking • Delivering sustainable Division created returns through client led • Leverage scalable low risk strategy infrastructure • Organisation simplified • Strategy set • Del
Slide 13: Commercial Banking: Meeting client needs via a holistic model
COMMERCIAL BANKING Meeting client needs via a holistic, low-risk, client-centric model 31% 23% 20% 26% Share of 2014 Core Client SME Mid-Markets Global Corporates Financial Institutions Income M&A Equity Derivatives Investment ECM Prime Brokerage Banking Secondary Equities Building Scalabl
Slide 14: Commercial Banking: Core financial performance
COMMERCIAL BANKING Core financial performance Commercial Banking • Disciplined pricing and deposit growth 2014 2013 Change • Franchise growth SME / Mid-Markets / (£m) Income Growth Financial Institutions Net interest income 2,480 2,113 17% • Stabilised funding costs Other income 1,956 2,259 (13%) Un
Slide 15: Commercial Banking: Continuity in vision and strategy
COMMERCIAL BANKING Continuity in vision and strategy; fully aligned to group priorities Our vision Our strategic priorities Our objective Becoming Creating the simpler and best client more efficient experience Best Bank for Clients Delivering Building the sustainable best team growth 14
Slide 16: Commercial Banking 2017 Core RoRWA
COMMERCIAL BANKING Deliver sustainable returns above the cost of equity Transformation Journey • Target growth in key segments and geographies Income Growth • Franchise growth in SME / Mid-Markets • Better meet needs of new and existing clients • Create front line capacity through simplification and
Slide 17: Agenda
AGENDA George Culmer Our differentiated business model Chief Financial Officer Andrew Bester Commercial Banking update Chief Executive Officer, Commercial Banking George Culmer Summary Chief Financial Officer 16
Slide 18: Summary
SUMMARY Becoming the best bank for our customers and shareholders while supporting the UK economic recovery Best bank for customers • The Group has a clear strategic focus and a differentiated business model • Delivering the best customer experience • Successful delivery of strategy has transformed
Slide 19: 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
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