Lloyds Banking Group plc · LSE:LLOY
Lloyds Banking — Investor Day (November 2023)
26 slides from Lloyds Banking's investor day presentation, Nov 28, 2023
Slide 1: Lloyds Banking Group
Classification: Public Lloyds Banking Group 28 November 2023
Slide 2: Welcome and introduction
Classification: Public Welcome and introduction Today’s presenters Agenda 1 Introduction Charlie Nunn Group Chief Executive 2 CIB value proposition John Winter CEO, Corporate & Institutional Banking (CIB) 3 Business initiatives Carla Antunes da Silva CEO, Lloyds Bank Corporate Markets (LBCM) 4 Summa
Slide 3: CIB is core to Group growth strategy
Classification: Public CIB is core to Group growth strategy Purpose • CIB is core to Group growth strategy; on track to achieve targeted Helping strategic outcomes • Delivering on our purpose of Helping Britain Prosper Britain • Building momentum across all CIB businesses • Investing for growth acro
Slide 4: Develop our Corporate and Institutional business
Classification: Public Develop our Corporate and Institutional business 1 Deepen and Innovate in Consumer Reporting Retail Commercial Banking Deepen and innovate in division Insurance, Consumer Pensions & Investments Business and Corporate & Business Consumer Consumer Commercial Institutional units
Slide 5: Clear CIB growth opportunity for the Group
Classification: Public Clear CIB growth opportunity for the Group Strong Base of strong corporate and institutional client relationships existing franchise Leading provider in key areas e.g. GBP DCM, UK Infrastructure and Project Finance, Sustainable Financing Deepening and expanding relationships w
Slide 6: CIB value proposition
Classification: Public CIB value proposition 5
Slide 7: CIB in context
Classification: Public CIB in context Data as at 9M 2023 Significant scale and reach Customer deposits Customer loans Clients1 Meaningful Group Commercial Banking Group income contribution Group OOI contribution contribution income contribution Income by geography2, % US c.15 Diversified Europe Exce
Slide 8: Complementary and diversified CIB value proposition
Classification: Public Complementary and diversified CIB value proposition Income by client type1, 9M 2023, % Well Long-standing client relationships matched client Corporate c.50 Clients c.50 Institutional Well positioned to meet complementary client needs base Income by business, 9M 2023, % Purpos
Slide 9: Clear opportunity to create additional value
Classification: Public Clear opportunity to create additional value Significant growth opportunity Revenue per client1 Leveraging well matched client base and differentiated 8x model to drive growth 3x Unlocking value through renewed focus, improved collaboration and enhanced offering Focused on mee
Slide 10: Delivering sustainable growth
Classification: Public Delivering sustainable growth Strong revenue momentum Building other income Growing and Broad-based revenue momentum diversifying Enabling Group other income generation revenues CIB net income growth since 20211 CIB OOI growth since 20211 Efficient operating model Prudent appr
Slide 11: On track to achieve 2024 outcomes
Classification: Public On track to achieve 2024 outcomes Targeted 2024 outcomes Progress to date Strategic priorities: c.£0.2bn strategic investment to 20241 £15bn c.£11bn Sustainable financing2 As at H1 2023 Strengthen cash- Product enhancements in core debt-risk capabilities of cash-debt-risk mana
Slide 12: Strategic initiatives contribute to CIB growth potential
Classification: Public Strategic initiatives contribute to CIB growth potential Deepen and Innovate in Consumer Additional revenues from CIB strategic initiatives, 20261 Strong business momentum with further upside Example initiatives: • EUR, USD financing • FX and Rates growth c.£0.4bn <10% of 2022
Slide 13: Strategic priorities address clear growth opportunities
Classification: Public Strategic priorities address clear growth opportunities Levers to unlock franchise value Deepening client 1 relationships Meeting additional client needs and becoming a broader solution provider Expanding Institutional Expanding Institutional footprint, providing other income
Slide 14: Deepening client relationships
Classification: Public Client relationships Institutional coverage Group collaboration Deepening client relationships Clear growth opportunity… Maximising the potential of existing relationships CIB clients with single CIB business relationship Providing OOI-accretive ancillary solutions …with signi
Slide 15: Expanding Institutional coverage
Classification: Public Client relationships Institutional coverage Group collaboration Expanding Institutional coverage Diverse and attractive business Building capital efficient, diversified revenues Institutional split by client number Increasing wallet share through enhancing proposition SSA1 Exp
Slide 16: Driving Group collaboration opportunities
Classification: Public Client relationships Institutional coverage Group collaboration Driving Group collaboration opportunities Generating Group value Unlocking opportunities across the Group Group Partner Value per client generated via CIB relationships1 Insurance, Delivering growth in workplace p
Slide 17: Business initiatives
Classification: Public Business initiatives 16
Slide 18: Integrated and comprehensive client approach
Classification: Public Integrated and comprehensive client approach Entry point for corporate clients Markets Lending Active portfolio management to optimise RWAs Lending Primary provider of payment solutions as the CIB income split (%) Transaction foundation for deeper relationships Banking Durable
Slide 19: Disciplined Lending business
Classification: Public Lending Transaction Banking Markets Disciplined Lending business Entry point to CIB Structuring and distribution operating model provides seamless experience Lending RWA split by sector1, % Services and Public Sector Specialist Extensive capabilities across vanilla and complex
Slide 20: Extending competitive advantage in Transaction Banking
Classification: Public Lending Transaction Banking Markets Extending competitive advantage in Transaction Banking A leading proposition Strong platform for growth Account-to-account UK Broad Liquidity, Payments, Trade and Working Capital payments processed1 capabilities Capital Durable and stable re
Slide 21: Well positioned Markets franchise
Classification: Public Lending Transaction Banking Markets Well positioned Markets franchise Complementary businesses Specialist knowledge and expertise Capital Markets Presence in deep capital markets of UK, Europe, US Credit Corporate Risk Strong DCM Securitisation Management Trading Solutions cou
Slide 22: Strong progress in Markets with further upside potential
Classification: Public Lending Transaction Banking Markets Strong progress in Markets with further upside potential Progress to date1 Share Rank Strategic actions and future growth potential All Bonds – UK Issuers2 Structured Finance – UK issuers3 6% 16% Quarter of UK plc issuance is in GBP5; growin
Slide 23: Summary
Classification: Public Summary 22
Slide 24: Confident in CIB outlook
Classification: Public Confident in CIB outlook Strong performance with further upside >50% revenue growth since 20211, with further momentum expected Delivering on strategic initiatives On track to achieve 2024 targeted strategic outcomes Maintaining capital efficiency <£3bn net RWA growth 2021-202
Slide 25: Q&A
Classification: Public Q&A 24
Slide 26: Disclaimer
Classification: Public Disclaimer Important notice The information, statements, views and opinions contained in this document and accompanying discussion (“this Presentation”) are for informational and reference purposes only. This Presentation has been provided by the Group (defined below). This Pr