REG - Lloyds Bank Plc Lloyds Banking Group - 2022 Q1 Interim Management Statement
27/04/2022 13:15
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RNS Number : 5635J Lloyds Bank PLC 27 April 2022
Lloyds Bank plc
Q1 2022 Interim Management Statement
27 April 2022
Member of the Lloyds Banking Group
REVIEW OF PERFORMANCE
Income statement
In the three months to 31 March 2022, the Group recorded a profit before tax
of £1,457 million compared to £1,768 million in the same period in 2021,
representing a reduction of £311 million as higher total income was more than
offset by the impact of a net impairment charge for the period compared to a
net credit in the first quarter of 2021. Profit after tax was £1,050 million.
Total income increased by £166 million, or 5 per cent, to £3,810 million in
the three months to 31 March 2022 compared to £3,644 million in the first
three months of 2021; there was an increase of £266 million in net interest
income offset by a decrease of £100 million in other income.
Net interest income was £2,922 million, an increase of £266 million compared
to £2,656 million in the three months to 31 March 2021. The increased net
interest income was driven by growth in average interest-earning assets and
deposits as well as an improved margin; the net interest margin benefited from
bank base rate increases and deposit growth, offsetting mortgage book margin
impacts.
Other income was £100 million lower at £888 million in the three months to
31 March 2022 compared to £988 million in the same period last year. Net fee
and commission income increased to £301 million, compared to £239 million in
the first quarter of 2021 due to higher card and other transaction-based
income streams, reflecting improved levels of customer activity compared to
the first quarter of 2021. Net trading income was £89 million lower at £91
million in the three months to 31 March 2022, in part reflecting the change
in fair value of interest rate derivatives and foreign exchange contracts in
the banking book not mitigated through hedge accounting. Other operating
income decreased to £496 million compared to £569 million in the three
months to 31 March 2021 as a result of lower gains on the disposal of
financial assets at fair value through other comprehensive income.
Total operating expenses decreased by £37 million to £2,175 million compared
to £2,212 million in the first three months of 2021. There was a decrease of
£6 million in operating costs; the impact of staff pay increases was offset
by staff number reductions and an increase in IT-related costs, as a result of
the Group's strategic investment, was in part offset by increased gains on
disposal of operating lease assets as a result of strong used car prices. The
charge in respect of regulatory provisions was £31 million lower at £33
million and largely related to pre-existing programmes. There have been no
further charges relating to HBOS Reading since the end of 2021 and the
provision held continues to reflect the Group's estimate of its full
liability, albeit significant uncertainties remain.
There was a net impairment charge in the quarter of £178 million, compared to
a net credit of £336 million in the first quarter of 2021, largely reflecting
a low incurred charge and a charge in the first quarter of 2022 as a result of
revisions to the Group's economic outlook, as an improvement from unemployment
assumptions and house prices was offset by additional provisions taken to
capture elevated inflation risk.
Overall the Group's loan portfolio continues to be well-positioned, reflecting
a prudent through-the-cycle approach to credit risk with high levels of
security. The Group's expected credit loss (ECL) allowance remained stable in
the first three months of the year at £4,060 million (31 December 2021:
£4,000 million). The Group continues to retain £0.7 billion of net
management judgements in respect of coronavirus (31 December 2021: £0.8
billion); within this, the Group has maintained its central adjustment of
£0.4 billion to recognise the downside risks outside of the base case
conditioning assumptions. As noted above, additional judgements have been
raised to capture the increased risk of inflation and impact on the cost of
living, with a further £0.1 billion added in the quarter, largely within the
segments of the Retail book that are considered less resilient to disposable
income shocks.
REVIEW OF PERFORMANCE (continued)
Following changes in credit risk measurement and modelling associated with CRD
IV regulatory requirements during the quarter, the Group has amended its
definition of Stage 3 for UK mortgages to maintain alignment between IFRS 9
and regulatory definitions of default. Default continues to be considered to
have occurred when there is evidence that the customer is experiencing
financial difficulty which is likely to significantly affect their ability to
repay the amount due. For UK mortgages, this was previously deemed to have
occurred no later than when a payment was 180 days past due; in line with CRD
IV this has now been reduced to 90 days, as well as including end-of-term
payments on interest-only accounts and all non-performing loans. Overall ECL
is not impacted as management judgements were previously held in lieu of these
known changes, however they result in £0.1 billion of ECL moving from Stage 1
and 2 to Stage 3 with £1.5 billion of additional assets in Stage 3. These
changes also lead to £7.4 billion of additional assets moving to Stage 2
given the consequential change in approach to the prediction and modelling of
up to date accounts and their likelihood of reaching the new broader
definition of default in the future. Given these are up to date accounts with
low probability of default that are moving to Stage 2, there is no material
ECL impact. Absent this definitional change, the sustained low levels of new
to arrears observed means that mortgage accounts that are classified as Stage
2, due to being in early arrears, have reduced slightly in the quarter.
The Group recognised a tax expense of £407 million in the period compared to
£485 million in the first three months of 2021. On 2 February 2022, the UK
Government substantively enacted a change in banking surcharge from 8 per cent
to 3 per cent with effect from 1 April 2023. As a result of rate changes,
including the impact of the surcharge reduction, the Group recognised a
£12 million deferred tax charge in the income statement and a £69 million
credit within other comprehensive income, increasing the Group's net deferred
tax asset by £57 million.
Balance sheet
Total assets were £28,131 million, or 5 per cent higher at £630,980 million
at 31 March 2022 compared to £602,849 million at 31 December 2021. Cash and
balances at central banks rose by £28,536 million to £82,815 million
reflecting the placement of funds from increased available liquidity.
Financial assets at amortised cost were £1,566 million higher at £491,882
million at 31 March 2022 compared to £490,316 million at 31 December 2021, as
a result of a £2,041 million increase in loans and advances to customers,
net of impairment allowances, and £1,455 million in debt securities, offset
by a £1,740 million decrease in reverse repurchase agreement balances. The
increase in loans and advances to customers, net of impairment allowances was
driven by continued growth in the open mortgage book, partially offset by
further reductions in the closed mortgage book. Other assets increased
£2,657 million due to a £1,579 million increase in retirement benefit
assets as a result of significant accelerated pension contributions in the
period and a £509 million increase in current tax recoverable. Financial
assets at fair value through other comprehensive income were £4,191 million
lower at £23,595 million as a result of sales during the period.
Total liabilities were £28,297 million, or 5 per cent higher at £590,374
million compared to £562,077 million at 31 December 2021. Customer deposits
increased by £4,586 million, or 1 per cent, to £453,959 million compared to
£449,373 million at 31 December 2021, as a result of continued inflows to
retail current and savings accounts and commercial deposits. Repurchase
agreements at amortised cost increased £16,414 million to £46,520 million,
as the Group took advantage of favourable funding opportunities and debt
securities in issue increased by £6,415 million reflecting issuances of
commercial paper and certificates of deposit. Subordinated liabilities
decreased by £2,040 million following redemptions during the period.
Ordinary shareholders' equity decreased £155 million to £36,255 million at
31 March 2022 as retained profit for the period and positive actuarial
remeasurements in respect of the Group's post-retirement defined benefit
schemes were more than offset by negative movements in the cash flow hedging
reserve.
REVIEW OF PERFORMANCE (continued)
The Group's operations are predominantly UK-based with no direct credit
exposure to Russia or Ukraine. The Group does have credit exposure to
businesses that are impacted, either directly or indirectly, by higher energy
costs or commodity prices, or potential disruption within their supply chains.
Such activity is monitored through prudent risk management. The Group
continues to monitor and analyse carefully key internal and external
indicators for signs of contagion risk and any second or third order risks
that may arise from the war in Ukraine above and beyond those captured in the
macroeconomic outlook. Investigations so far have not revealed any significant
risks, although the Group remains vigilant and proactive risk mitigation is
undertaken as appropriate to ensure that it supports clients, including those
in financial difficulty, whilst protecting its portfolios.
Capital
The Group's common equity tier 1 (CET1) capital ratio reduced from 16.7 per
cent at 31 December 2021 to 14.1 per cent on 1 January 2022, before increasing
during the quarter to 14.5 per cent(1) at 31 March 2022. The reduction on
1 January 2022 reflected the impact of regulatory changes, including an
increase in risk-weighted assets as well as other related modelled impacts, in
addition to the reinstatement of the full deduction treatment for intangible
software assets and phased unwind of IFRS 9 transitional relief. The
subsequent increase during the quarter reflected profits for the period and a
reduction in risk-weighted assets, partly offset by accelerated pension
contributions.
The total capital ratio reduced from 23.5 per cent at 31 December 2021 to 20.0
per cent(1) at 31 March 2022.
Risk-weighted assets increased from £161.6 billion at 31 December 2021 to
around £178 billion on 1 January 2022, before reducing during the quarter
to £175.4 billion at 31 March 2022. The increase on 1 January 2022
reflected the impact of regulatory changes, including the implementation of
new CRD IV models to meet revised regulatory standards for modelled outputs
and a new standardised approach for measuring counterparty credit risk
(SA-CCR) following the UK implementation of the remainder of Capital
Requirements Regulation (CRR) 2. The subsequent reduction in risk-weighted
assets during the quarter was largely driven by optimisation activities and
model recalibrations, partially offset by the growth in balance sheet lending.
The UK leverage ratio reduced from 5.3 per cent at 31 December 2021 to 5.1 per
cent(1) at 31 March 2022.
(1 )Incorporating profits for the quarter that remain subject to
formal verification in accordance with capital regulations.
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Three Three
months months
ended ended
31 Mar 31 Mar
2022 2021
£m £m
Net interest income 2,922 2,656
Other income 888 988
Total income 3,810 3,644
Operating expenses (2,175) (2,212)
Impairment (charge) credit (178) 336
Profit before tax 1,457 1,768
Tax expense (407) (485)
Profit for the period 1,050 1,283
Profit attributable to ordinary shareholders 986 1,176
Profit attributable to other equity holders 55 102
Profit attributable to equity holders 1,041 1,278
Profit attributable to non-controlling interests 9 5
Profit for the period 1,050 1,283
CONDENSED CONSOLIDATED BALANCE SHEET
At 31 Mar 2022 At 31 Dec 2021
£m £m
(unaudited) (audited)
Assets
Cash and balances at central banks 82,815 54,279
Financial assets at fair value through profit or loss 1,841 1,798
Derivative financial instruments 5,031 5,511
Loans and advances to banks 4,364 4,478
Loans and advances to customers 432,870 430,829
Reverse repurchase agreements 47,968 49,708
Debt securities 6,017 4,562
Due from fellow Lloyds Banking Group undertakings 663 739
Financial assets at amortised cost 491,882 490,316
Financial assets at fair value through other comprehensive income 23,595 27,786
Other assets 25,816 23,159
Total assets 630,980 602,849
Liabilities
Deposits from banks 4,266 3,363
Customer deposits 453,959 449,373
Repurchase agreements at amortised cost 46,520 30,106
Due to fellow Lloyds Banking Group undertakings 3,006 1,490
Financial liabilities at fair value through profit or loss 5,919 6,537
Derivative financial instruments 5,047 4,643
Debt securities in issue 55,139 48,724
Other liabilities 9,900 9,183
Subordinated liabilities 6,618 8,658
Total liabilities 590,374 562,077
Ordinary shareholders' equity 36,255 36,410
Other equity instruments 4,268 4,268
Non-controlling interests 83 94
Total equity 40,606 40,772
Total equity and liabilities 630,980 602,849
ADDITIONAL FINANCIAL INFORMATION
1. Basis of presentation
This release covers the results of Lloyds Bank plc together with its
subsidiaries (the Group) for the three months ended 31 March 2022.
Accounting policies
The accounting policies are consistent with those applied by the Group in its
2021 Annual Report and Accounts.
2. Capital
Capital and leverage ratios reported as at 31 March 2022 incorporate profits
for the three months that remain subject to formal verification in accordance
with capital regulations. The Group's Q1 2022 Interim Pillar 3 Report will be
available in early May and can be found at:
https://www.lloydsbankinggroup.com/investors/financial-downloads.html.
ADDITIONAL FINANCIAL INFORMATION (continued)
3. Group loans and advances to customers and expected
credit loss allowance
Stage 1 Stage 2 Stage 3 POCI Total Stage 2 Stage 3
as % of as % of
total total
At 31 March 2022 £m £m £m £m £m
Loans and advances to customers
UK mortgages 266,028 29,188 3,480 10,768 309,464 9.4 1.1
Credit cards 12,181 2,092 287 - 14,560 14.4 2.0
Loans and overdrafts 8,225 1,213 269 - 9,707 12.5 2.8
UK Motor Finance 12,305 1,866 192 - 14,363 13.0 1.3
Other 16,148 2,302 1,009 - 19,459 11.8 5.2
Retail 314,887 36,661 5,237 10,768 367,553 10.0 1.4
SME 26,775 3,167 822 - 30,764 10.3 2.7
Corporate and other 34,131 3,151 1,798 - 39,080 8.1 4.6
Commercial Banking 60,906 6,318 2,620 - 69,844 9.0 3.8
Other(1) (762) 36 56 - (670)
Total gross lending 375,031 43,015 7,913 10,768 436,727 9.8 1.8
ECL allowance on drawn balances (901) (1,102) (1,643) (211) (3,857)
Net balance sheet carrying value 374,130 41,913 6,270 10,557 432,870
Customer related ECL allowance (drawn and undrawn)
UK mortgages 41 305 269 211 826
Credit cards 151 284 126 - 561
Loans and overdrafts 130 191 136 - 457
UK Motor Finance(2) 106 72 110 - 288
Other 45 65 56 - 166
Retail 473 917 697 211 2,298
SME 61 121 86 - 268
Corporate and other 65 155 855 - 1,075
Commercial Banking 126 276 941 - 1,343
Other 406 1 9 - 416
Total 1,005 1,194 1,647 211 4,057
Customer related ECL allowance (drawn and undrawn) as a percentage of loans
and advances to customers(3)
UK mortgages - 1.0 7.7 2.0 0.3
Credit cards 1.2 13.6 57.5 - 3.9
Loans and overdrafts 1.6 15.7 66.7 - 4.7
UK Motor Finance 0.9 3.9 57.3 - 2.0
Other 0.3 2.8 14.0 - 0.9
Retail 0.2 2.5 15.5 2.0 0.6
SME 0.2 3.8 12.8 - 0.9
Corporate and other 0.2 4.9 47.6 - 2.8
Commercial Banking 0.2 4.4 38.1 - 1.9
Other 2.8 16.1 -
Total 0.3 2.8 23.5 2.0 0.9
(1 )Contains centralised fair value hedge accounting
adjustments.
(2 )UK Motor Finance for Stages 1 and 2 includes £94 million
relating to provisions against residual values of vehicles subject to finance
leasing agreements. These provisions are included within the calculation of
coverage ratios.
(3 )Total and Stage 3 ECL allowances as a percentage of drawn
balances exclude loans in recoveries in credit cards of £68 million, loans
and overdrafts of £65 million, Retail other of £610 million, SME of £149
million and in Corporate and other of £2 million. Other excludes the £400
million ECL central adjustment.
ADDITIONAL FINANCIAL INFORMATION (continued)
3. Group loans and advances to customers and expected
credit loss allowance (continued)
Stage 1 Stage 2 Stage 3 POCI Total Stage 2 Stage 3
as % of as % of
total total
At 31 December 2021 £m £m £m £m £m
Loans and advances to customers
UK mortgages 273,629 21,798 1,940 10,977 308,344 7.1 0.6
Credit cards 12,148 2,077 292 - 14,517 14.3 2.0
Loans and overdrafts 8,181 1,105 271 - 9,557 11.6 2.8
UK Motor Finance 12,247 1,828 201 - 14,276 12.8 1.4
Other 16,414 1,959 778 - 19,151 10.2 4.1
Retail 322,619 28,767 3,482 10,977 365,845 7.9 1.0
SME 27,260 3,002 843 - 31,105 9.7 2.7
Corporate and other 32,056 3,081 2,019 - 37,156 8.3 5.4
Commercial Banking 59,316 6,083 2,862 - 68,261 8.9 4.2
Other(1) 431 34 62 - 527 6.5 11.8
Total gross lending 382,366 34,884 6,406 10,977 434,633 8.0 1.5
ECL allowance on drawn balances (909) (1,112) (1,573) (210) (3,804)
Net balance sheet carrying value 381,457 33,772 4,833 10,767 430,829
Customer related ECL allowance (drawn and undrawn)
UK mortgages 49 394 184 210 837
Credit cards 144 249 128 - 521
Loans and overdrafts 136 170 139 - 445
UK Motor Finance(2) 108 74 116 - 298
Other 45 65 55 - 165
Retail 482 952 622 210 2,266
SME 61 104 90 - 255
Corporate and other 63 140 857 - 1,060
Commercial Banking 124 244 947 - 1,315
Other 406 2 9 - 417
Total 1,012 1,198 1,578 210 3,998
Customer related ECL allowance (drawn and undrawn) as a percentage of loans
and advances to customers(3)
UK mortgages - 1.8 9.5 1.9 0.3
Credit cards 1.2 12.0 56.9 - 3.6
Loans and overdrafts 1.7 15.4 67.5 - 4.7
UK Motor Finance 0.9 4.0 57.7 - 2.1
Other 0.3 3.3 13.8 - 0.9
Retail 0.1 3.3 20.9 1.9 0.6
SME 0.2 3.5 12.7 - 0.8
Corporate and other 0.2 4.5 42.5 - 2.9
Commercial Banking 0.2 4.0 34.8 - 1.9
Other 1.4 5.9 14.5 - 3.2
Total 0.3 3.4 27.4 1.9 0.9
(1 )Contains centralised fair value hedge accounting adjustments.
(2 )UK Motor Finance for Stages 1 and 2 includes £95 million relating
to provisions against residual values of vehicles subject to finance leasing
agreements. These provisions are included within the calculation of coverage
ratios.
(3 )Total and Stage 3 ECL allowances as a percentage of drawn balances
exclude loans in recoveries in credit cards of £67 million, loans and
overdrafts of £65 million, Retail other of £379 million, SME of £135
million and in Corporate and other of £4 million. Other excludes the £400
million ECL central adjustment.
( )
ADDITIONAL FINANCIAL INFORMATION (continued)
4. UK economic assumptions
Scenarios by year
Key annual assumptions made by the Group are shown below. Gross domestic
product and CPI inflation are presented as an annual change, house price
growth and commercial real estate price growth are presented as the growth in
the respective indices within the period. UK Bank Rate and unemployment rate
are averages for the period. CPI numbers are translations of modelled RPIX
estimates, except for the base case view.
2022 2023 2024 2025 2026 2022-2026
average
At 31 March 2022 % % % % % %
Upside
Gross domestic product 3.6 1.0 1.8 1.6 1.6 1.9
UK Bank Rate 1.39 1.80 2.00 2.02 2.05 1.85
Unemployment rate 3.3 3.4 3.6 3.8 3.8 3.6
House price growth 5.3 4.8 4.9 3.9 3.8 4.5
Commercial real estate price growth 9.1 3.1 0.5 (2.9) (0.8) 1.7
CPI inflation 7.6 4.6 2.2 2.1 2.3 3.8
Base case
Gross domestic product 3.5 1.2 1.7 1.7 1.5 1.9
UK Bank Rate 1.06 1.31 1.50 1.50 1.50 1.38
Unemployment rate 4.1 4.3 4.4 4.5 4.5 4.3
House price growth 3.3 0.0 0.2 0.7 1.0 1.0
Commercial real estate price growth 0.5 (1.3) (0.3) (1.5) (0.3) (0.6)
CPI inflation 7.5 4.3 1.6 1.2 1.3 3.2
Downside
Gross domestic product 3.3 0.7 1.6 1.7 1.5 1.7
UK Bank Rate 0.67 0.47 0.52 0.53 0.53 0.54
Unemployment rate 5.1 6.1 6.1 6.0 5.9 5.8
House price growth 0.0 (7.0) (6.7) (5.0) (2.2) (4.2)
Commercial real estate price growth (6.8) (6.1) (3.6) (3.4) (0.2) (4.0)
CPI inflation 7.5 4.1 1.2 1.2 1.4 3.1
Severe downside
Gross domestic product 1.1 (0.2) 1.6 1.7 1.5 1.1
UK Bank Rate 0.24 0.03 0.06 0.06 0.06 0.09
Unemployment rate 6.8 8.5 8.5 8.1 7.8 7.9
House price growth (1.4) (12.1) (12.3) (9.4) (6.1) (8.4)
Commercial real estate price growth (17.9) (12.8) (6.5) (4.3) (0.8) (8.7)
CPI inflation 7.5 3.9 0.6 0.4 0.7 2.6
Probability-weighted
Gross domestic product 3.2 0.8 1.7 1.6 1.5 1.8
UK Bank Rate 0.96 1.08 1.21 1.22 1.23 1.14
Unemployment rate 4.4 5.0 5.1 5.1 5.0 4.9
House price growth 2.4 (1.9) (1.7) (1.1) 0.1 (0.4)
Commercial real estate price growth (1.0) (2.6) (1.7) (2.8) (0.5) (1.7)
CPI inflation 7.5 4.3 1.6 1.4 1.6 3.3
ADDITIONAL FINANCIAL INFORMATION (continued)
4. UK economic assumptions (continued)
Base case scenario by quarter
Key quarterly assumptions made by the Group are shown below. Gross domestic
product is presented quarter-on-quarter, house price growth, commercial real
estate growth and CPI inflation are presented year-on-year. UK Bank Rate and
unemployment rate are presented as at the end of each quarter.
First Second Third Fourth First Second Third Fourth
quarter quarter quarter quarter quarter quarter quarter quarter
2022 2022 2022 2022 2023 2023 2023 2023
At 31 March 2022 % % % % % % % %
Gross domestic product 0.8 0.0 0.2 0.2 0.4 0.2 0.4 0.4
UK Bank Rate 0.75 1.00 1.25 1.25 1.25 1.25 1.25 1.50
Unemployment rate 3.9 4.0 4.1 4.2 4.2 4.2 4.3 4.3
House price growth 10.5 9.5 6.5 3.3 1.4 0.0 0.1 0.0
Commercial real estate price growth 13.9 11.5 6.7 0.5 (0.8) (2.0) (0.9) (1.3)
CPI inflation 5.9 8.0 7.9 8.3 7.5 4.0 3.9 1.6
FORWARD LOOKING STATEMENTS
This document contains certain forward looking statements within the meaning
of Section 21E of the US Securities Exchange Act of 1934, as amended, and
section 27A of the US Securities Act of 1933, as amended, with respect to the
business, strategy, plans and/or results of Lloyds Bank plc together with its
subsidiaries (the Lloyds Bank Group) and its current goals and expectations.
Statements that are not historical or current facts, including statements
about the Lloyds Bank Group's or its directors' and/or management's beliefs
and expectations, are forward looking statements. Words such as, without
limitation, 'believes', 'achieves', 'anticipates', 'estimates', 'expects',
'targets', 'should', 'intends', 'aims', 'projects', 'plans', 'potential',
'will', 'would', 'could', 'considered', 'likely', 'may', 'seek', 'estimate',
'probability', 'goal', 'objective', 'deliver', 'endeavour', 'prospects',
'optimistic' and similar expressions or variations on these expressions are
intended to identify forward looking statements. These statements concern or
may affect future matters, including but not limited to: projections or
expectations of the Lloyds Bank Group's future financial position, including
profit attributable to shareholders, provisions, economic profit, dividends,
capital structure, portfolios, net interest margin, capital ratios, liquidity,
risk-weighted assets (RWAs), expenditures or any other financial items or
ratios; litigation, regulatory and governmental investigations; the Lloyds
Bank Group's future financial performance; the level and extent of future
impairments and write-downs; the Lloyds Bank Group's ESG targets and/or
commitments; statements of plans, objectives or goals of the Lloyds Bank Group
or its management and other statements that are not historical fact;
expectations about the impact of COVID-19; and statements of assumptions
underlying such statements. By their nature, forward looking statements
involve risk and uncertainty because they relate to events and depend upon
circumstances that will or may occur in the future. Factors that could cause
actual business, strategy, plans and/or results (including but not limited to
the payment of dividends) to differ materially from forward looking statements
include, but are not limited to: general economic and business conditions in
the UK and internationally; market related risks, trends and developments;
risks concerning borrower and counterparty credit quality; fluctuations in
interest rates, inflation, exchange rates, stock markets and currencies;
volatility in credit markets; volatility in the price of our securities; any
impact of the transition from IBORs to alternative reference rates; the
ability to access sufficient sources of capital, liquidity and funding when
required; changes to the Lloyds Bank Group's or Lloyds Banking Group plc's
credit ratings; the ability to derive cost savings and other benefits
including, but without limitation, as a result of any acquisitions, disposals
and other strategic transactions; inability to capture accurately the expected
value from acquisitions; potential changes in dividend policy; the ability to
achieve strategic objectives; insurance risks; management and monitoring of
conduct risk; exposure to counterparty risk; credit rating risk; tightening of
monetary policy in jurisdictions in which the Lloyds Bank Group operates;
instability in the global financial markets, including within the Eurozone,
and as a result of ongoing uncertainty following the exit by the UK from the
European Union (EU) and the effects of the EU-UK Trade and Cooperation
Agreement; political instability including as a result of any UK general
election and any further possible referendum on Scottish independence;
operational risks; conduct risk; technological changes and risks to the
security of IT and operational infrastructure, systems, data and information
resulting from increased threat of cyber and other attacks; natural pandemic
(including but not limited to the COVID-19 pandemic) and other disasters;
inadequate or failed internal or external processes or systems; acts of
hostility or terrorism and responses to those acts, or other such events;
geopolitical unpredictability; the war between Russia and Ukraine; risks
relating to sustainability and climate change (and achieving climate change
ambitions), including the Lloyds Bank Group's or the Lloyds Banking Group's
ability along with the government and other stakeholders to measure, manage
and mitigate the impacts of climate change effectively; changes in laws,
regulations, practices and accounting standards or taxation; changes to
regulatory capital or liquidity requirements and similar contingencies;
assessment related to resolution planning requirements; the policies and
actions of governmental or regulatory authorities or courts together with any
resulting impact on the future structure of the Lloyds Bank Group; failure to
comply with anti-money laundering, counter terrorist financing, anti-bribery
and sanctions regulations; failure to prevent or detect any illegal or
improper activities; projected employee numbers and key person risk; increased
labour costs; assumptions and estimates that form the basis of our financial
statements; the impact of competitive conditions; and exposure to legal,
regulatory or competition proceedings, investigations or complaints. A number
of these influences and factors are beyond the Lloyds Bank Group's control.
Please refer to the latest Annual Report on Form 20-F filed by Lloyds Bank plc
with the US Securities and Exchange Commission (the SEC), which is available
on the SEC's website at www.sec.gov, for a discussion of certain factors and
risks. Lloyds Bank plc may also make or disclose written and/or oral
forward-looking statements in other written materials and in oral statements
made by the directors, officers or employees of Lloyds Bank plc to third
parties, including financial analysts. Except as required by any applicable
law or regulation, the forward-looking statements contained in this document
are made as of today's date, and the Lloyds Bank Group expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any
forward looking statements contained in this document whether as a result of
new information, future events or otherwise. The information, statements and
opinions contained in this document do not constitute a public offer under any
applicable law or an offer to sell any securities or financial instruments or
any advice or recommendation with respect to such securities or financial
instruments.
CONTACTS
For further information please contact:
INVESTORS AND ANALYSTS
Douglas Radcliffe
Group Investor Relations Director
020 7356 1571
douglas.radcliffe@lloydsbanking.com
Edward Sands
Director of Investor Relations
020 7356 1585
edward.sands@lloydsbanking.com
Eileen Khoo
Director of Investor Relations
07385 376435
eileen.khoo@lloydsbanking.com
Nora Thoden
Director of Investor Relations - ESG
020 7356 2334
nora.thoden@lloydsbanking.com
CORPORATE AFFAIRS
Grant Ringshaw
External Relations Director
020 7356 2362
grant.ringshaw@lloydsbanking.com
Matt Smith
Head of Media Relations
020 7356 3522
matt.smith@lloydsbanking.com
Copies of this interim management statement may be obtained from:
Investor Relations, Lloyds Banking Group plc, 25 Gresham Street, London EC2V
7HN
The statement can also be found on the Group's website -
www.lloydsbankinggroup.com
Registered office: Lloyds Bank plc, 25 Gresham Street, London EC2V 7HN
Registered in England No. 2065
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