Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — FY2011 Earnings Presentation
14 slides from Lloyds Banking's earnings presentation, Feb 24, 2012
Slide 1: 2011 Results
2011 RESULTS 24 February 2012 Mark Fisher Director, Group Operations
Slide 2: Update on Costs and Simplification
UPDATE ON COSTS AND SIMPLIFICATION
Slide 3: 2011 Total Costs
2011 TOTAL COSTS Total costs reduced 4%, operating expenses down 6% TOTAL COSTS 2010 2011 Change £m £m % Operating expenses 10,882 10,253 (6) UK bank levy - 189 FSCS Costs 46 179 Impairment of tangible fixed assets 150 - Total costs 11,078 10,621 (4) Integration synergies annual run-rate 1,379 2,054
Slide 4: Total Costs: Integration synergies delivered with costs down £1.6bn (13%)
TOTAL COSTS Integration synergies delivered with costs down £1.6bn (13%) f from 2008 (13)% 12,236 888 10,621 189 89 (178) (1,851) (663) 2008 Integration Op. lease Bank levy Inflation / Simplification 2011 cost depreciation VAT / NIC / savings synergies Investment and Other costs 3
Slide 5: Simplification Programme central to becoming the best bank for customers
SIMPLIFICATION The Simplification Programme is central to becoming the b best bank b k for f customers and d a high hi h performing f i organisation i i SIMPLIFYING OUR BUSINESS Enhanced customer experience CUSTOMER BENEFITS Reduced errors and complaints Faster, more efficient service Reduce
Slide 6: Fast start and strong momentum; savings can be accelerated
SIMPLIFICATION Fast start and strong momentum gives us confidence that savings i can be b accelerated l d WHAT WE SAID IN 4 KEY WORKSTREAMS Savings in Number of JUNE… 2014 initiatives (£bn) Invest I t Operations and Processes 06 0.6 25 Implement workflow, automate, improve IT significantly in land
Slide 7: Fast start to cost savings with early deliverables achieved
SIMPLIFICATION Fast start to cost savings with early deliverables achieved SIMPLIFICATION MOBILISED £178m benefits in 2011 / Run-rate £242m 2,098 role reductions announced – 1,665 FTE reductions by year end Corporate functions (eg Risk, HR, Finance) centralised Wholesale and Retail Bank rest
Slide 8: We have analysed our processes across the Group
SIMPLIFICATION We have analysed our processes across the Group CUSTOMER INITIATED BANK OR 3RD PARTY INITIATED PROCESSES 7
Slide 9: Focusing on processes that maximise cost savings and simplify service
SIMPLIFICATION We are focussing on the processes that will both maximise cost savings i and d simplify i lif customer service i FTE VOLUME BY PROCESS NUMBERS 100k 85k FTEs 80k mapped to 910 end-to-end processes 60k 125 processes FTE 68k FTE 16k FTE involved in top 5 40k processes Focus on top
Slide 10: Industrial scale process re-engineering across three customer treatments
SIMPLIFICATION Industrial scale process re-engineering focused on three core customer treatments ONE TOUCH SEMI AUTOMATED EXPERT HANDLING Fully Automated Image & Workflow Centres of Excellence Level of Automation 9
Slide 11: Early momentum carried into 2012, over 180 initiatives underway
SIMPLIFICATION Early momentum carried into 2012, with over 180 initiatives now underway d EARLY 2012 DELIVERIES Further 1,690 , role reductions announced Efficiency improvements in – Account Transfer (Switchers) process - April – Improved I d Commercial C i lL Lending di process rolling lli outt
Slide 12: Cost Position Summary
COST POSITION SUMMARY Integration synergies £2bn delivered Total Cost base reduced by 13% since 2008 and 4% in 2011, with Operating Expenses reducing by 6% in 2011 Fast start to Simplification Programme and tight cost management process implemented Strong momentum and mobilising at scale to
Slide 13: 2011 Results
2011 RESULTS 24 February 2012 Mark Fisher Director, Group Operations
Slide 14: Forward Looking Statements and Basis of Presentation
FORWARD LOOKING STATEMENTS AND BASIS OF PRESENTATION FORWARD LOOKING STATEMENTS This announcement contains forward looking statements with respect to the business, strategy and plans of the Lloyds Banking Group, its current goals and expectations relating to its future financial condition and perfor