Lloyds Banking Group plc: Yellowstone Advisory with ShareSoc webinar for private investors
Strategy update, Q3 results analysis and outlook
We were delighted to host the Head of Investor Relations, Douglas Radcliffe and Head of Group Strategy, Corporate Ventures and IR Director, Carla Antunes da Silva at the Lloyds Banking (LON:LLOY) (LBG) webinar for private investors. The recording can be watched here.
Carla Antunes da Silva started by giving an outline of the LBG strategy. LBG is the UK’s largest financial provider with 26 million customers and the largest branch network and digital presence in the UK. LBG’s model is to be a multi-channel and multi-brand proposition with low risk participation in the market and strong capital discipline. They are number one in the UK in mortgages, credit cards and personal current accounts by market share. Insurance, wealth and banking are the three core pillars of the business.
2020 has seen the overlay of a Covid-19 recovery plan on top of the third stage of the Group Strategy Review which is due to complete in 2021. Along with provisions to ensure the impact of the pandemic is dampened, inclusivity, sustainability and diversity are key areas for LBG to develop. (For those interested, the Group‘s ESG presentation can be found here). In this third phase the focus has been to transform the group digitally. Despite a challenging outlook and the headwinds of Covid-19, the group is still delivering on the review targets. Key to digitalisation is investment to produce strong and superior returns which has continued through the period even if dampened. Investment is down 16% YoY due to the pandemic.
In 2020, the pandemic accelerated the shift to digital in terms of telephony and video conferencing as well as online banking. LBG now has 17.1m active users, up 1.4m in the first 9 months of 2020. This equated to 3.1bn logons. Customer satisfaction rose 8% YoY in this period showing that the shift to digital is not hampering the quality of service.
Douglas Radcliffe moved the attention to the Q3 results and current performance. LBG will have a new Chair, Robin Budenberg as of January 2021 and the new CEO, Charlie Nunn will join from HSBC in the Spring as Horta-Osorio leaves for Credit Suisse. If there is a gap in management the CFO, William Chalmers, will be the acting Group CEO.
Q3 showed an…
