Recent LYG transcripts
Associated LYG filings
| Charlie Nunn | Group Chief Executive |
| William Chalmers | CFO |
| Douglas Radcliffe | Head of IR |
| Alvaro Serrano | Morgan Stanley |
| Omar Keenan | Credit Suisse |
| Guy Stebbings | BNP Paribas Exane |
| Amandeep Rakkar | Barclays |
| Rohith Chandra-Rajan | Bank of America Merrill Lynch |
| Christopher Cant | Autonomous Research LLP |
| Raul Sinha | JPMorgan |
| Edward Firth | Keefe, Bruyette & Woods |
| Robert Noble | Deutsche Bank |
| Andrew Coombs | Citigroup |
Good morning, everyone. It's great to be here to see so many people in the room today. And I'd also like to welcome everyone joining us on the webcast and the phone lines this morning. Since I joined the group, I've spent a lot of time getting to know the business and our people. It is great to have the opportunity to speak directly to you, our investors and analysts. I Lloyds I'm six the even the today with have now, opportunities been joined. group say I to more than have for months over I for I when was excited about I've seen Group organization digital including significant with bank, franchise, Lloyds and strengths, fantastic UKs is a an competitive the myself for that Banking leading great people. costs are the group whilst maintaining for some to opportunities and real also discipline. But there capital grow
our underpins strategy purpose do. helping Britain integral have everything and We powerful to This is a group prosper. new we will
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I'm and financial over So strategic the group made has through the last to to over run going William William? progress the now hand year. to
with Thank room for joining great in in those you once Good the everyone. today. you be thank and you of to person morning, you, again, Charlie. for it's And
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on for remarks the conclude performance much again I'll indeed that, very listening. with my strategic Thank for financial and you So XXXX.
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Thank you, Charlie.
highlighting business heard spend I'll years. shape coming priorities you've our and the outcomes. Now strategic that financial XX minutes the over about target next our
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So and to hand thank to it over close. there you I'll again leave for Charlie listening.
group So just vision shared today. part, to the the for the turn of compelling the we've close We briefly future a to final before Q&A. of hope we
points, XXXX to U.K. This the a of more purpose-driven as to shared and and to efficiency is strategy taken drive people, strengthen three-year longer-term as and more to transformation digital greater cost on delivering returns customer-focused in and diversified plan driven shareholders of financial Our drive over turn on in integrated an opportunities deliver which These revenues commitment Whilst by attractive help to our the objectives, equity services period of time, cost new return on clear the provider, outcomes. percentage view in technology we've to is These maximize signposts our our capitalizing tangible be growth at enablers, by allowing than higher return leader and for returns, a capital our scale. at us key will than to step XX% opportunities, our of sustained set clear revenue and will X we've XXXX. data. to a our well a same and potential achieving allow XXXX. priority capitalize a increase a change on
more strategy new hand and concludes Britain Q&A. us capital will who support shareholder for distribution generation to more increase higher, listening sustainable our help capacity. Even and Douglas? to help strategy over the will Thanks will importantly, I'll host Our Douglas, now our prosper. That presentation, today.
aside hour their name and anyone asking with Q&A. please for actually We've Thank their state line you, questions, about company. And normal Charlie. set an in practice,
Let's start Alvaro. with
I Morgan sure, two on. from Serrano it's Not questions. morning, yes, have Alvaro Stanley. Good
thoughts steer mortgage or still insurance? XX given some maybe run central The is income. assumptions color high. gauge In bit to I years? we're is you kind get you a out plan, the but guidance it the out but Thank the rate XX.X% in the of on of want take in second sense around of level Just us XX%? call that Is the still is to? that that's to you. growth to items the assumptions of that normalized And question what sensitivity, over maybe and offsets the context of taking you've could well you've your just for outer in feeling a to the book. of on as the going that? LDC a division pretty William, on other share you ordinaries margin it and is to the obviously help Obviously, this I the what's XX% versus of see ROTE. of rate even is the give Some sensible one-offs. contribution income behind us trying is want QX mentioned around for extra you're the is the what the other -- open points maybe the Could year and ended some what some of over
that, questions Sure. those Alvaro. Thank in you I'll take perhaps for of each turn.
the guidance how a confident upon were. two plan and as But market out. the margins, on I we ensure revenue based to much upon side, you assumptions in XX%. key assumptions very in our How depends, greater it plan out, greater On play to is to XX%, as than that which think, mortgage make difference deliberately identified. and the feel it's constructed We've stand conservative than in as particular macro order rates
conservative. are I think both, we in
we know, £XXX to into had where as in million. periods. revenue expect I forward be the effect forward any for in of you And as at plan. XX-ish completion income leave XX around market superimpose mortgage April. you then course swap and consider a development base the simply upon would questions is one inform we the So pass mentioned, points. before and completion then that rolled in effect, on we about to that that specifically, And rolled we've that that the in That, increase bank of basis to the right we Mortgage now the curve a assumptions, And which, said, structural curve. talking assumption but the follow structural may expect XXX that if November, January, is the that as I expect be is based top is, to We've alone, QX, planning seen will market increase to alone be somewhere that or have future at we margin today between rates equates to our therefore, XXX where or we rate we rates hedge to particular, what base on during I aside basis in it look December over focus hedge base the lead look And points rate points. to bank assumptions, ROE. BBR basis you around our our implied plan that's had a mean also would what any difference by be rate
forward-looking margin is XXXX, get mortgage into XX margin we as we points QX. XXX basis completions that you So think margin on telling effectively, about that come be our applications to based XXXX in circa we'll
incremental I you BAU. terms know, that, record track X.X very revenues revenues clear, think, strategic good we've of got, the are comfortable about -- on from feel our the in And We very with delivering exceptional costs. costs the feel as are on an we initiatives. Beyond and our
it’s £X a in investment as greater And feel charge a in are just leading of is XX%. costs. this than that So actually overall, to P&L worth we comment costs absorbing very mind confident bearing Investment final while billion, short considerable that's Again, of you of given X% like circa X £XXX million. out policies during year, charge the if billion a cash the course more and average the years. accounting not of over ROTE £X roughly
after these So are we're that you investment absorbed having that metrics that mind in bear giving demand.
finish line, again, the in indeed XX%. So about of just feel very we I with excess overall, think comfortable to punch
how that. lot control. thing one the a of all obviously We uncertainty add I won't around think of the the factors on market for about what questions. I And do can William, assumptions. see and is we top and versus we'll this had this do on or we be to able conversation you the exogenous view. able in and we competitive a in bit pricing We those what those about assumptions to talk adjust the conservative time, take mortgages be control, hopefully, prudent things and you'll know can't over we'll a rates, external
can't So view the prudent we we've on taken control. things a
that's quarters the a the environment things. plan. Obviously, about core for that's the to how philosophy the external been ambition develops, have as this and managing chance we'll of to and the and ambitious. And around really over the businesses, controllable investments pretty think our focused committing to we've we growing committing control One we're can costs what been talk on that coming we're laid revenue growth we and is but things this those strategic out to around we've
asked Alvaro, income about you other well. as
in on. assumptions. Other as address I'll achievement income £X.X that in we billion about of there So perhaps income, over was I review insurance £XX an just basis saw before moving billion. Within QX, of other that, said,
coming rate QX effectively out little of run a over £X.X the So billion. is
the and there talked you equity led Now businesses, about of LDC in our contributions QX. they back were normal to
say to we us £XXX you'll as circa million. to in in billion go other conversations circa you've therefore, thereabouts. A and half a I X/X We is lockdown So million levels And to business previous assumptions of One couple from lost think expect one-third I've review after income GDP think business about the over the XXXX, going is, the rate, the that recovered of £XXX we into contribute that above run it's look the of activity activity £X.X How our that remember about fair insurance talked do forward? taken to points. past at out notch ADR, to that other period. we that, giving in therefore, somewhere would half we've of to zone. or recovering million the £XX
add our help Citra about previous our of those investments, we of it's fair that course also app for And will income example, increased gradual. that you're income together. XXXX. that think that an at I got to strategic the that but moment, the and will together, protection in contribution that, And Embark. you I investments will say us then two for in for of build our other investments, top over added not the think management you So into developed, two home have cash be those looking and from to like inter but gradually million the contribution £XXX payments, as other if things example, On revenues know, you've
over it So take but will time. in, time, build that us will
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Omar?
and the very Alvaro's a it. that's for all ROTE assumptions. you into Good the question you've and morning. gone here, the follow-up got actually Thank sensitivity. rate in assumption on the hard very And much baked work on I've interplay presentation conservative with question
for basis the play they're they market. put the in based XX%. guess, pass-through of your points, said expect on to assumptions Barclays pass-through have deposit XXX below I in peers out even next yesterday Some expecting deposit what that
you just you mortgage my what about assumptions. And here about Can second talk pass-through? about you've the on deposit said well. hear ask you please So margins, as question said maybe I'll what rate what got
low-hanging when on that looks is great, cost income implies from on the OOI, So which that marginal in look fruit. that really the I ROI the incremental revenue at
gains changed do delivery And in past? allow so I these now guess the that? you the has impediments of were question the to to the think is realizing what And what
Shall I question? second the take
course. of Yes,
Omar. Thanks,
the that On the to same and the are assumptions ROTEs, effect the that contribution as analyst you interest the sensitivity in essentially QX. see of is presentation have we you that net into building that income
as the what we assume XX% so for there that basis think is to say while exactly a -- side, pass-on consistency just than continue of done likely on I rates, think And liability it those that is are a to on same fair does How reality seen would be low assumption we at interest relate very pass case forward. the far, that I which QX. assuming and a so on again seen be we've at the is moment, probably safe going suggest. and to today less numbers little will to have we And case the
the of obviously Now position the of is pass conditions course, as extent competitive by bank, as well forth. determined of funding and that the on so
just proven And to-date, an said, But will be based our continue so I will XX%, perhaps our evolve how overestimate that be sensitivity passed into overall that as have is we time I like, competitive develop. peers and of on you has the assumptions. if have being, these factors for been of what expect but the as that see develop shown to conditions on, will some indicating. just we've would to parcel
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first external. is The
obviously, in our to So respond front greater which strength needs even given to products have digitally, customers look are we the leaders our net see or zero and we on and growth an the organization. their forward, finance infrastructure vehicle U.K. with housing level put our And of focus at as transition a with digital other one that. of external opportunities great look similarly, the financing if the going customers meet the expectations to capabilities of meaningful leading in end and important examples. to business the already transport opportunity. we and at We're in the services to electric most of finance vehicle you environment, really what us And interacting now as are with at
off growth that That's significant the externally. really there's see back going of thing. we So first we some on the of things can the get
have. opportunity. lives, affluent of customers where obvious most and of bring unless right I those services that's groups unique the No million And one them the is of to wealth else to the about we customers. we build insurance invest those its the to our our can bring a the services talk and is, Embark now capabilities actually the deeper XX Second and and want and briefly continue investments of now is. example I I go is mean operates And existing breadth most thing but market and talked acquisition, progression innovate and breadth which probably mass around in that in continue of briefly, opportunity with that this customers really to, the de-accumulation you services won't their stage then
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Guy, why next don't question? you take the
BNP color the morning. from Thanks Stebbings Paribas this Exane. Guy for
start questions Just prior the rate sensitivity. of building to on some on with
hedge cautious the market on then £XXX beat the you've what's the date been the it deposit than like be same looks even said, prevailing assuming the by took plan. for north And I color quite of on that as incremental better rate, rate, base based million deposit if guess to has well each expectations. for doing for £XXX million XXXX on in should thanks the So rates, additional a we prevailing structural swap base
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first that's question. So the
big of The picture on is second more kind question costs.
to at its peers. I argue look today, quite more terms investment over spend you four, If closest would years, compares some versus Lloyds three, incremental than last pointing you're the five peers. Yet in your it favorably investment of of
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take I the one? Shall second
question. Thanks, Guy, the for
the £XXX the in or our comments given that as curve today, rate the guidance component of that which the the the might current we around hedge effect of On of for is full I of million, that base simply swap rather made said, have the that curve mix. that's follow changes, structural sensitivity plan effect market to
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the of bottom to that? choose with to we -- would terms that choose way, what of drop majority vast do in were it line. In I what simply if would come through the think that we to
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don't next why ask Rohith, the question? you
Good wondered with America. just coming of Thanks. morning. starting back please, net if income, and interest particularly Rohith mortgages. start by I I to Bank could Chandra-Rajan,
spreads for to XX or while that guess, you thank point XX basis XXX spreads. you to through so, the application So basis margin points flow completion takes to I that at currently anticipate, a and
on of rolls much what would over your front new the ends you're to how points, being XXX still or to applying over written. sort book, quickly of that's get margin. guess of billion do the that basis higher so XX points time? you'd obviously standard start that I XX% are over And a book So rate the you in expectations what variable that the that's £XXX think into be range XX terms basis in around that And business to to at XXX
of the piece. mortgage So around sort that was
average online the stay revenues that XX% Is the -- final that particularly very could are sort want initiatives Thank or noting things And ground then balance plan, as just particular particularly expectations was earning in and doubling drive period that lending. more us come for of of you sheet, new revenues? uplift than doubling wondered XX%. in comment or and market. that for significant initiative is on nominal two-year question new the that gather that XXXX given about broad-based assets last assets. between the your there pace? of there I the you. the in Or the mortgage your risk-weighted you secured if to competitive through interest clear And course You've guidance the
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the bit last to on the There's things, over you few the earlier One And all that's been put market and place far. ahead the sensitivity. place couple on weeks. swaps mortgage up a the around you been been I moving the of that so have time providers within think going there. has me spreads give is that, the NII pricing accompanied that for moving market, business. write think, As have the I has they comments which by of of a because as many application say, causes in the swaps That not obviously is know, what at largely up,
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XXXX. that for the AIEAs earlier XXXX strategic line that we I very is with and The asked Charlie for You on. in the way in see about comments much AIEAs made presentation
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give as you build over So examples. these a things of and couple I'll time, you know,
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quickly. that probably type And to of second we know best example get our market intermediated investment is some we The where we is in investments can products of business. the relatively have of the retail
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you from next Chris, why the question take yourself? don't
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Yes.
question, for are Embark initiatives. Chris. the Thanks these On Citra strategic part of strategic and not initiatives,
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Thank Okay. you.
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Okay. Other Raul?
giving XXXX. this from is targets. portfolio tangible dated. outcome, goes very And Hi, also the into I Raul are The is very upside and costs is first your Sinha It's the and long combined a challenge us on upfront morning. plan JPMorgan. you're with guess the one which good just that
what's assumption second was couple bake in unsecured driving within the out us will return that, again and assume mentioned And you balances, levels? guess understand the a rates strategic question, think, pre-pandemic I little bit And taking next to a if currently? over recovery I'm you've where And more check unsecured to you the ambition, help there's with all that has you upside? the going relative that could mix, I bit margin impacted Citra, little what But plan? behind target growth initiatives. of shift versus can outside the hoping of sense I if Thanks. where granularity. of potential the could overdraft around into else, on into £X.X regulatory-driven I are also, in largest of are you obviously more top give So just growth do of for wanted address everybody balances your how NII I to been are of billion income NII, Embark the areas is, from within the a William granularity a you a kind three the perhaps conservative non-NII you now tangible your get unsecured recovery out years to the right really then perspective, if a like struggling equity XX% quantify
Yes. of you first? So one you Thank for the the you. first to thank do all, Do question, it first Raul. want
five what But £X.X do which revenue, they we ones growth show the leading I billion as in you four know to to of franchise five we're three, is areas, And when five as view years one view. split I longer-term But other building £X.X areas we and things the one of and of delivering of we continue the we are Obviously, to all growth. get to the those breakdown. haven't are and is additional and you would talked in the I of part more five, plans and years about that indicators growth. one, I to growth. our some said, given BAU that it out are committed questions, driving others four five. start five building that important growth how really for have and two call distinct And So three underlying and a haven't growth through and will we're talked a those are incremental of of of the go next about complete some the billion that split. quarters, share I clear them the areas
the on. a initiatives get I that go pass it. you'll growth really as of level with feel we're comfortable But real that forward. So for drive we shall that and William, you really
assume well Thanks. unsecured Thanks. expectations that the that the recovery we of low get XXXX, as approach people Raul, and this course course has to behavior growth pandemic. over a ROTE, by of year, we And year, to that ramp-up saw during course look a unsecured over gradual a On in XXXX. to really the only And that the change line before in of X.X% see GDP see to to the bit unsecured this only of take with been see. as we it's in our you some we XXXX to as customer expect in 'XX start back and levels
go, that's we built how again, we see. buildup and balances, that balance, I XX%, balances. upon you XX% see, a know, approach in as of if think prudent not the the particular, but the word of that in unsecured uncertainties confidence do just if And the see is approximation coming forgive Now potentially simply unsecured things of therefore, would what therefore. some relatively an some ramp-up, a it, unsecured revenues it of we it's -- but returning, but the then returning, see which, economic also we think overall to travel we our faster is from reflects in
lot talked rates, we've the mortgage within about areas with We've there about unsecured ROTE. talked balances. about a talked asked bit about margins conservatism You a interest
The area potentially AQR. other is
my mentioned course we're and going circa Based year. upon points that come on, I of Now underlying. we've project performance the that XX in given basis points. comments circa over forward beyond, the seeing of we very the as guidance If for AQR year basis XX well of we this inside this benign to are today, earlier
Now to still how again, based rolling overlays which default virus ahead plenty to XX and we coming about the million you forms of see experience, around year. let's in upon over mutations today's of are total mark-to-market the vaccine forward, of of which as against million points. out. basis support then being happens this There's course overlays, place. portfolio, what insurance out against the There's But there. of of we the for still things question within know, worst million that a £XXX £XXX is other that COVID-related essentially uncertainties that fare resistant is various government principal And as £XXX have but
we I based to aware overlays them not we'll or quarter, fact at moving think fares. looking we those that NII. prevailing see how that it valid the upon the AQR conditions. rest to we how And But are rolls the are We'll today. every of assumption, Overdraft the have year still whether forward. year are see outperforming be of
effect of customer demographic the off as customer an but compressed sure so effect a That's base the seen there's base, corners of lower we much market, think product obviously, activity, nonetheless, understood B, be also is levels our I correctly, sure as that overdraft some the bit I corners, playing now some in buy of A, back the customer were, our mean, suspect overdraft that of later balance of in much upon not but but the point preferences but not various it terribly change a well. too. I'm having in I'm is an initiatives. I margin. I And pay have
it. I some back upon come So with line plan in building think overdraft, We're activities. economic do overall, expect our not we
back back, edge to we any Okay. to think go and don't I at going Thank further the right back get the you. can I'm an there.
had back Great. helpful. putting just Thanks thank you disclosure, I finally very restructuring And so we pension very is for And yes, indeed. much, much two have so Charlie, proper for which that. questions you indeed for thank really. earnings, into numbers, for very super much you the the thank also
found that thing how one the the a about it's last arrival you was a trying like but much very XX about characterized know its really, is The with where to you observation sell exposure customer And Because one approach bigger transparent PPI to be, been things and customers. Lloyd's? if don't you're is what what can new per talking your first as products at culture. I And in years, aggressive your more. we've than else's. there's Lloyds everybody that's seen But
last told it. about it but was didn't line. And a year the predecessor XX one-off million solved, time below £XXX worry us then this to hit we and now was have customers, Your had is which HBOS, we
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lot and for than about do you, get placed and you just there. And I guess, then a talk sector cost off the question And between that and £XX a if talked question for customer at between is but They're how going digital I a rather one, £XX is efficiency. the of -- I your about costs everybody you running other operating digital your digital is look again year. are how but per well anywhere you competitors, more
£XXX your the numbers, your going on change Now that's us your year. to three And to you've change years. over to it's but between two numbers and like not today, not that's or based plans going given difficult look materially get next a £XXX
that XX% much. the just with certainly Thanks entrants that are a cost materially franchise. you customer have of how is so different the new or such versus confident running contacts So you XX% I'm now asking who be base sustainable with that, can
Great.
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of refer think a thinking I previous will I've starting you mind, things. the but how and tell don't point what won't seen on, is I So And to experiences if I you it. couple my I'm about
risk is been a personal in and need point the around I important customers risk come actually, very culture a systemically those a back second. are First found those I'll costs, the of group. my services that attributes financial all, attributes is you cares and what of is purpose-driven And about always have view, disciplined to
You to an support think are the I we the a that broader other be done obviously period discipline. those describing you to they the of attributes, U.K., of need outsider, across ways things been we what Lloyds last have for long as how risk in months. six this about care come have is And certainly and culture customer-driven to Group you space as certainly, have true I've there's time. in Banking industry, but really come just do and serve in the of in society, then in which context cost And
that. from the and the But which very and on obviously, about obviously material been they in returns group, a the their a from lot on shareholder organization capability really talked customer really come PPI. a the You customer We've HBOS has upper they've focused history period those parts of had and material a the within and about are when and the and course, I last customers teams focus outcomes, of invested very over think decade. have been of outcomes. discipline serving impact And conduct of in real and on of on lots ways with focus this got
opportunity going our XXXXs really outcomes ability by customers. so with more in ever deliver you that join able I up to forward were do to a customers. customers We difficult and making to is And difference the our we be I and pace. we embraces organization will in to needs. XXXXs When engage level be customer forward, joined able seen impressed need change think the customers of digital a versus a make the be to we there. at that to use have don't respect for I the a ourselves change heart for And what I've to we see move the I've our need faster put drive choosing and that at what able look and support the and need, us data to to different very been up across a their And to point need way to because position of they earlier, William go financial that to who culture
we've real strength. something deliver We to and path, this execution think if this question think definitely digital, On it's great at. really a culture on our in I starting discussing going and is strategic helpful set organization initiatives this of a and So of look we're is proactively to as this time, question shape starting and to go very started the we're core I it's point we forward. already
they them Of services, meaningful to U.K. today, so still And a comes that's part mean then having money, course, And stable available that But the that you, to want means to I that's bring a balance solve specific income with and as humans, strong been to then evolving, and an backup you'll relationship, provide do know you the multichannel return, have they a if proper their customer of think be large revenue is digital people from a shareholder can can want create customers a profitable full will comment advice that problems. their experience. it build really or full relationship, evolve, to on your can then you services starting broader and point sheet, service, ability something won't people all. financial to can plan financial are today, you you relationship, as really which really trust fee with with their funding do going for build a actually want that and about which a says. them but you have investments. to per either to the sustainable go digital-only I build customers can't our organizations, through if what proposition. them serve continue if largely
clear the and path If economic because model to. them don't need trust around at growth revenue today, they people don't their their per sustainability you model those things today their at and look their level to a revenue they have
and more as as building revenue confidence per about the wallet to enough serve. much starting customer the think I or this on big is to it is capture share cost of is first point trust So a
Now those serve the I've cost me numbers seen multiple to obviously, quoted numbers times.
way that's look data we modern from that returns. full investments relationships we profitability actually modernize ability is again, discussion, technology one or really per our channels the actually, think view, kind the and the trusted I and at all is you've to got of where channels some for returns those But of uncomfortable X-year time today, grow we application with infrastructure brands Obviously, we're a the technology this if only it's then multiple slightly our of these it. a time to underpins sustainable we create of and way horizon creating having relationships. as need of looking stance customer. And investments. think and with over proven sustainable making, service I know this of those net the at the
we're to know, you else. my X, behavior changes next be efficiency. have placed That's anything over to don't if William, thought cost the that. X, on XX I going against well customer optimize As years,
Yes, HBOS last be I'd like that. point to upon the have we today that HBOS ongoing in standards, relation to Reading future said as to we based when has made actually, accounting we taking with different would we in to different said judgment charge charges Reading which charge follow HBOS accordance and year, that case, up Reading just there to What in brought the process on, the nothing HBOS always were to one relation in that was is There forward for for is an heading, Reading. address.
year to So just want versus make to that's we on this acknowledged. be Reading And said clear, nothing year. inconsistent there's just what about very I sure last HBOS
Redburn. Ed's on question another to question, relating Just Kunwar on of life was there Fahed
over share competitive, as market and pandemic we we fee opportunity income and investment big On question the keep and investing investment heavily. just because looking itself, see in profit share way gaining fintech this how an should growth Lloyds so as and at ask it banks much of lose Or this I look businesses, the above and investment recovery? is profits? this defensive a versus at offensive. U.K. U.S. to doesn't Is
comment I So to that. quicker at might on am that, you want
clear on a is today both. we and is But the hope So always committed investment. answer we've investments done the -- return we non-defensive we're have it's to is what what that will
efficiency investments, see compelling you when investments, is that return or of think we on can look how either comfortable give you are. basis of quite there you very that and cases, revenue a the in compelling we're portfolio us are So growth, questions go-forward said the today associated at through and many both a number if have they look a that these is
either weren't if grow share. our to improve Now invest a in business, to which continue the at reality revenues the there's and innovate, then exceeding downside inflation pace or is losing cost our alternatively we risk to
The on William, case build the clearly I progress on on investment and revenues is We case know do built that. efficiency. if what need haven't built you don't investment very that. on to we to But our
for mathematics attractive traction move the better a if of reasons. And you I but forward, important Safe time two for so investments, to like, that XXXX, sustainable and look out, be discussed forward producing revenue ROIs, XXXX we of becomes you as but it starts set gained, particularly business. that, future can it's of the That as and like the business, requirements powerful the presentation, now outcome. Well, what have One quite They as most XXXX all it. combination a the feels support work investments hard see is it's particularly do Charlie. right reduced the through with and making defensive we say the captured to in in this a is that you is of in in to for charge fall to operating that And do. business. X investments distinguish therefore, be of on level, away very a to we're when XXXX, depreciation the we investment you very particularly both is associated between the have to just what scale offensive. the particularly some as go for ROI to future CapEx from at at you think the attractive produces it, we've Added
Okay. Thank you. Any other questions.
It's Noble Bank. at Good Rob morning. Deutsche
for ask I to because at it what you now and is was risk risk growth And past? in moved interesting didn't a fraud be in later fraud? of just by even was show William. £XXX than that your wanted a should the cost of not hurdles you at, to to out ever if far lower XXXX, And out million did secondly, questions, we were be that of did that that throw the two meet costs you've impairment strategy, level balances or that why terms fraud mentioned, anything your didn't traveled. you just from of by of hurdle What charges because not on in about buy-to-let than you your -- of they you The lending, what unsecured please. thinking be the bar? else lower pay be on the going presumably, from road better cost past, to you thinking about out specialist cannot phrase, One looked of moved one look Charlie, threw are buy example, for should normal Just make maybe are XXXX, the it through-the-cycle the
much Thanks it the side question, is the of -- for business. unfortunate moved forward What's essentially, fraud liability be business. Rob. happened to used that payment growth push in it's changed On of with to lending the linked with the growth the of what's the that is the case fraud, that happened fraud the of business was side that the
other that don't that our for of a we like forward benign so have it the that the that grow it we've we XXXX, or you impairment with industry. will in removed Is chosen that going in it and fact of relatively line suspect see less very our from tackle be as it to the from frankly, of depend the more line cost initiatives a some in a payment accounting, are fraudsters move and given with line given shrink, on the in it's I customer phrasing normal other to sense, participants forward. When our and to forward unfortunate the put to expect level war up basis. sort the are necessarily factors hopefully XX our upon a factored the that, inside forecast a through-the-cycle macro-economic year success to characteristics but obviously beyond. into I'd but least, of next at fraud degree, kind we as of X.X% and expect I it much. that giving year charge below of to basis today will guidance it of move becomes are fraud of that the therefore, be base. I points. And into statutory we And say, growth transactional would of look
points set at it's So today. basis XX below deliberately
the at If I expect on basis XX moving amongst historical around inside look XX over points us fraud the be cycle, Today, would they've been we're you XX other going then below basis that macro, points. to that based points. in to of upon our impact, factors charges, basis
but of era sense. fundamental the core decades, at about where the decades been obvious, is second restructuring where strategy. think a Britain it, of financial and decade clear bold on if and retail decisions the we last let you question, we've is just not one bit is Banking which question of One Lloyds then X which comes of which And such two Group optimizing out when obviously repeat context, me just on participation what post focusing and And commercial core that U.K. centered through pretty back makes bank we crisis ROE a the decisions a been and restructuring have decade the around then do. choices, made Great.
that So perspective this starting I important well and first derisked we the And think grow. focused choices you think what managed, our business made. about was we point when opportunity have that's an has to
wealth that, our the slightly affluent retail we lots having corporate then it's through. businesses and There's if Now okay, choices businesses, said between I'll the it's characterize were different. and going institutional businesses. of
I'll you So give examples.
the will we plus around want relationship-led through lending we participate. me platforms subprime to is near-prime embedded are institution that say On look and to just a at BNPL you don't about build going participate look all to the that what But BNPL when world, a payments are and in the able coming our lending them would risk And It more customer's third-party at of look it embedded whole there side, context. exposure we across simpler businesses, way. retail or don't more a -- in be our mortgage talked their a to talked it surprised really looking in different at market in And you segments because actually, in borrowing actually, we and need unsecured lending. in segment. of We're prime we think businesses about externally, appetite relationships as we finance we've be that their unsecured forward more and BNPL. then how But you operate in continued from then our borrowing in about provide model. help
a decided we the in do as way. not today, BNPL that it can we we actually yes, participate to but of in customers is like So simplistic serve the some more ways
retail that's the appetite choices. on risk side, So
some obviously net the We context worth core up not moving the And affluent today. high was private probably in into that customers On that's piece, space. actually, ultra-net have clear. decision worth, banking
the that £XX,XXX customers way. up there's U.K. have really what's invest two Banking customers those plus. for view million gap the Group the to Lloyds serving kind in joined Our of money is a is a in distinctive we to know about fact And
there was franchise. it set would prioritize was And corporate institutional a which space, wealth whole sectors of to wanted versus choices really a we wouldn't more then where actually, around on which So products. and build distinctive the and around we
strong So in works if a a of management it's the we're those we debt today without any the for some from but start having I sterling can't focused know of wouldn't successful capability be which And franchise. at, very and we place actually U.K., know a -- linked We the choices we're to in segments in in in and corporates, and those parts we the scale capabilities do serve really of you have guilt, excluded date. world and we those looked is U.K. corporates, don't where leader risk to we other that. many in cash you, need to
and combination really sectors need going to just returns the compete, provide be. around focus to it the we of we we build we So sustainable products said, franchise on a things was that can't the were and geographies,
core that help? are those choices. Does So you. Thank
Excellent.
Okay.
probably I there. the we've for one back time, at got the hand time more Given see question. can a
follow-on Citi. Hi, could I If William thank for have for you. It's one Andrew Coombs and from Charlie. one
back XXXX the be to For NIM to on deposit and William, point coming just outlook. beta just specific
deposit a thus for using beta lower XX% to hikes You talked had rate you far. future been about forward your can not said XX%, we be going experience
go is target assumptions? to Lloyds generation into for your baked be clarify that doing is what same to doing then now I pre-COVID for capital about XXXX. we is if initiatives good you're for assuming organic what or basis the are targets but So The out the there's by were XXXX think you essentially please? is, XXX ROTE, if XXX you're back that's the and of out picture guidance, And of to the the points in output. for your in come in two next a reality and Charlie seems could couple you you time way that there just initiatives NIM the here mean XX% So of and seen in of first talking guess putting XXX pre-COVID, hikes lot XXX awful an to to question that, the all bigger my lot here. I of question there old
is going wrong as So And to what's importantly, more those? offset gone it's this to good get. as ever
Great. Do go to first? want you
question around Andrew. not Thanks in assumption. you. your question, that, the pass will will we've for for too or Andrew. plan points for XXXX we the is a amongst the What them, number of market customer considerations I is around also which, the balance so and as liquidity basis but requirements, be and first conditions driven What XX% business and Thank XX off on of considerations Obviously, high. far by do On factors. assumed fact competitive around also the extremely foremost before, mentioned sheet,
but on plays our not not So see. planning may on I for mean, the as rates we far per just it's comment assumption. off. that how lesser a have my case. But in earlier so bang to actually, ourselves, on, long as an we'll purposes, that put not we as versus sector, XX%, XX% that on assumption continue that seen lesser are I far, out, part low, part across the be but suspect it's a
you. Thank Great.
again. So the question. Thanks second question the take for I'll
couple a thoughts. of So
first because of revenues committed next evolving we're today we sustainability nature the how of seeing and in with is The it's things relationships and looking we're materially to deepening different. and diversification that talking we're one customers, businesses just forward the seen we're as the few look the about you've margin also we will that's And now hopefully, growing actually through both years. talking business be but is forward, the of is the the of about the
context shareholder world has not in we forward. good to this, significantly on obviously, and this the provides bluntly, comment prior perspective, we And income significantly and have when So XX thing at than then return may IFRS targets. story from targets the position the a you more not from and this mortgages, prior look the about income second going sustainable coming from franchise return targets. if the think at period, a I'm margin seen is, you have going changed very the prior in and the producing shareholder perspective, of we those through at we an sustainable think, end look
returns we're to and will pretty in that's of last Group aspiring It a if the equity a the NIM the leader banks. than lift talk we bold to get Lloyds blue look clear of with cost Nordic and is what can closer services returns you like water. now financial about I U.K. financial decade financial XXX at European talking actually rest about years, where banks in basis services the U.K. think think bluntly over covering we seeing it's a in look an get market, terms third aspiration. its first of organization We a and planning to. still make are is in and and to the but already point us We're that's few star you progression Banking at
the points our on U.K., by basis not by equity. has That European you above as financial other of XXX and around of the equity that pricing of a grow Now, XX% laying to management banks has in we're is margin driven been most play a tangible XX% today, out is But been to cost competitive decade. covering already team XX%. understand, return greater it return I relative your on services good discussion what in whole commitment think, delivered does equity a discussion as well nor rates really are and than or tangible how what out the last
And on rates. and macro different the do this play alpha you'll ambitious. it's on materially -- call we a So from see got whether the we trajectory see also it as as a take on past
Charlie. Excellent. Thank you,
a that's think good I conclusion.
couple will been that questions. conclude that ask people room to able their that So a conscious to been And in are there's also there Q&A. questions. their conscious haven't ask the I'm a I'm able online number of that people haven't the that of
sure we'll effectively Charles with to contact in could just team to of response. provide make hand individuals all respond closing briefly what get Relations if and appropriately. to Investor just we'll if those So those a I could directly the brief Otherwise, back
especially to appreciate everything And thank physically you, thank the in proper virtually. going everyone joined back joining with for and actually person face, my today. So to for face you that's great you really you question-and-answer both facilitating session. Douglas, We on externally who first especially today. and be It's to and thank
thank you coming. for So
We're much. our engaging a and We returns. updating day. on also future more to and hope hope of of quarters our in deliver will And rest group's sustainable sense higher great strategy have looking you share the excitement and a you very offline. that, Thanks have how our forward your about really you and future new ambition good I
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