January 2025

Strategic
Overview

Helping Britain Prosper through 320 years of heritage and digital innovation

30M

Customers

63K

Employees

FTSE

100 Listed

01 • Group Overview

320 Years of Serving Britain

Who We Are

Lloyds Banking Group is the UK's largest retail and commercial financial services provider, serving approximately 30 million customers through our iconic brands. With a heritage spanning over 320 years, we have been at the heart of British banking since 1695.

Our dual headquarters in London and Edinburgh reflect our commitment to serving communities across the entire United Kingdom. As a FTSE 100 constituent with a market capitalisation of approximately £59.9 billion, we combine the stability of a heritage institution with the innovation of a digital leader.

30M

Customers

63K

Employees

£59.9B

Market Cap

Heritage Timeline

1695

Bank of Scotland Founded

1765

Lloyds Bank Founded

2009

Lloyds Banking Group Formed

Business Segments

Retail Banking
45%
Commercial Banking
35%
Insurance & Wealth
20%

Customer Focus

Delivering market-leading, mobile-first experiences

Digital Leadership

Leveraging technology and AI transformation

Sustainable Growth

Supporting Britain's transition to sustainable economy

Integrated Services

Comprehensive solutions across banking & insurance

02 • Financial Performance

2024 Financial Highlights

Robust performance, strong capital returns, and shareholder distributions

£4.5B

Statutory Profit

-19% vs 2023

£6.3B

Underlying Profit

-19% vs 2023

12.3%

Return on Tangible Equity

14.0% before provision

£3.6B

Shareholder Returns

~9% of market cap

Income & Cost Analysis

Net Income: £17.1B (-5% YoY)
Operating Costs: £9.4B (+3% YoY)

Capital Strength

CET1 Ratio 13.5%

Comfortably above regulatory requirements

£224.6B

Risk-Weighted Assets

52.4p

Tangible Net Assets/Share

2024 Shareholder Distributions

3.17p

Ordinary Dividend (+15% YoY)

£1.7B

Share Buyback Programme

03 • Strategic Transformation

Building Momentum for Growth

Phase One Complete: 2024 Achievements

Successfully exceeded revenue targets

Target

£0.7B

Additional Income

Achieved

£0.8B

+14% Above Target

Cost Savings

£1.2B

Gross Savings

20M+

App Users

6B+

Annual Logons

~80%

Outcomes Delivered

£11.3B

Deposit Growth

Mobile Banking Refresh

Transformed engagement through refreshed Mobile app

Home Hub Ecosystem

Mobile-first home ownership experience

Credit Score Proposition

Improved creditworthiness and conversion

Ready-Made Investments

Making investing accessible to more customers

Phase Two Ambitions: 2026 Targets

£1.5B+

Additional Income from Strategic Initiatives

<50%

Cost:Income Ratio Target

>15%

Return on Tangible Equity

>200 bps

Capital Generation Target

"We're just scratching the surface. There's significant scope for further improvements as we build out our digital capabilities."

— Charlie Nunn, Group CEO

04 • Digital Innovation & AI

Leading the UK's Digital Banking Revolution

800+

AI Models Live

20M+

App Users

18+

GenAI Systems

40K

Colleagues with Copilot

AI Transformation

While AI has been part of our toolkit for over two decades, 2024 marked a pivotal shift to a Group-wide strategy focused on generative and agentic AI.

People

Comprehensive upskilling programme with 200+ AI specialists

Process

Scalable operating model with GenAI Control Tower governance

Technology

Multi-platform approach leveraging Microsoft and Google Cloud

£50M

Incremental value expected from AI in 2025

Launching Early 2026

UK's First AI Financial Assistant

The UK's first large-scale, multi-feature AI-powered financial assistant will transform how over 21 million customers manage their finances.

Personalised analytics
Tailored savings advice
Investment guidance
24/7 financial companion

Athena: AI Knowledge Hub

21K

Colleagues Using

2.1M

Searches YTD

66%

Time Reduction

Google Cloud Vertex AI

Migrated 15 modelling systems with hundreds of models

Income Verification: Days → Seconds 27 Tonnes CO2 Saved

05 • Future Outlook

Confident in Our Strategic Path

2025 Financial Guidance

~£13.5B

Net Interest Income

~£9.7B

Operating Costs

~25 bps

Asset Quality Ratio

~13.5%

Return on Tangible Equity

Analyst Consensus

BUY
Consensus Rating
103.8p
Price Target
9/10
TipRanks Smart Score

Sustainable Finance Leader

£20B+

Social Housing Since 2018

£9B+

Sustainable Finance H1 2025

Dividend Outlook

2025 Forecast 3.43p
2026 Forecast 4.01p
+17% growth expected 2025-2026

Risk Management & Resilience

Line 1: Business Units

Risk Ownership - Proactive identification and management

Line 2: Risk Function

Oversight - Independent monitoring and challenge

Line 3: Internal Audit

Assurance - Independent verification and validation

£433M

Underlying Impairment Charge

10 bps

Asset Quality Ratio

13.5%

CET1 Ratio

Helping Britain Prosper

30M

Customers

£3.6B

Shareholder Returns

800+

AI Models

£20B+

Social Housing

With a clear strategic vision, strong capital position, and digital leadership, we are well-positioned for continued success.

Lloyds Banking Group • January 2025