Lloyds Banking Group is a leading provider of financial services to individual and business customers in the UK, whose main business activities are retail and commercial banking and long-term savings, protection, and investment. The Group operates the UK’s largest retail bank and has a large and diversified customer base.
Its shares have a premium listing on the London Stock Exchange (symbol: LLOY), have a market cap of £31bn and are a constituent of the FTSE 100 index.
We were delighted to welcome Douglas Radcliffe, Group Director of Investor Relations and Andrew Williams, Head of Competitor Analysis, to the latest Yellowstone Advisory and ShareSoc webinar to provide an update on 2022 performance.
There were 5 key messages from the results. First, LBG is a purpose driven business underpinned by strong financials which support customers and colleagues. Second, LBG has delivered a robust financial performance which is resulting in higher capital returns and strong income growth. Thirdly, LBG is reaffirming its strategy. Fourth, LBG has made a good start to strategic transformation and there is early evidence of delivery. Finally, confidence in the outlook is enhanced.
Customers and clients are at the heart of their business and LBG is proud of the support they are providing. This includes providing additional support to some a customers, support for businesses and support for colleagues. Despite the difficult economic environment LBG have not seen an increase in the number of clients who need their support. This highlights the resilience of the customer base. LBG is also focussed on building an inclusive society and this includes advancing over £2bn to social housing projects and lent £14bn to first time buyers in 2022. Progress has also been made supporting the transition to net zero and this includes a new partnership with Octopus Energy and supporting climate change projects. There is also an important commitment not to finance any new oil or gas fields. LBG continues to target areas where they can make the biggest difference whilst also focusing on profitable growth.
Highlighting some of the key numbers from the strong 2022 results: Net Income was up 14% to £18bn; the cost income ratio fell to 50.4% as a result of stable business as usual costs; ROTE was down slightly at 13.5%; 245bps of capital was generate and women in senior roles increased to 39.4%, an increase of 1.7% during the year. LBG paid a dividend…
