Q1 2019 - Home - Lloyds Banking Group plc...Return on tangible equity 12.5% 7.8% 14.8% 11.9% 12.3%...
Transcript of Q1 2019 - Home - Lloyds Banking Group plc...Return on tangible equity 12.5% 7.8% 14.8% 11.9% 12.3%...
Q1 2019Interim Management Statement
LLOYDS BANKING GROUP PLC Q1 2019 INTERIM MANAGEMENT STATEMENT
Page 1 of 7
GROUP CHIEF EXECUTIVE’S STATEMENT
In the first three months of 2019 we have again delivered a strong business performance with continued strategic
progress, increased statutory and underlying profit and strong financial returns. While Brexit uncertainty persists, and
continued uncertainty could further impact the economy, I remain confident that our unique business model, and in
particular our market leading efficiency and targeted investment, will continue to deliver superior performance and
returns for our customers and shareholders.
António Horta-Osório
Group Chief Executive
HIGHLIGHTS FOR THE THREE MONTHS ENDED 31 MARCH 2019
Good progress against strategic priorities with accelerated investment in the business
Strategic investment of £1.2 billion since launch of GSR3 in February 2018
Further progress on digitising the Group and enhancing customer propositions
MBNA migration completed ahead of schedule with increased return on investment of 18 per cent expected
Schroders Personal Wealth on track to launch in second quarter
Continued strong business performance with increased profits and market leading returns
Statutory profit after tax of £1.2 billion up 2 per cent with strong return on tangible equity of 12.5 per cent and
earnings per share up 2 per cent to 1.49 pence
Underlying profit of £2.2 billion up 8 per cent driven by increased net income and lower operating costs
Net income increased by 2 per cent to £4.4 billion with a robust net interest margin of 2.91 per cent, higher other
income and lower operating lease depreciation
Total costs of £1,977 million down 4 per cent driven by lower operating costs and remediation charges
Cost:income ratio further improved to 44.7 per cent with positive jaws of 6 per cent
Credit quality remains strong, with no deterioration in credit risk. Net asset quality ratio of 25 basis points up on fourth
quarter reflecting expected lower releases and write backs
Statutory profit before tax of £1.6 billion with higher underlying profit offset by movements in below the line items,
including an estimated charge for exiting the Standard Life Aberdeen investment management agreement
Tangible net assets per share increased to 53.4 pence driven by strong underlying profit
Balance sheet strength maintained with lower capital requirement
CET1 capital build of 31 basis points in the quarter after the expected one off impact from the implementation of
IFRS 16 (11 basis points); CET1 ratio of 14.2 per cent, pre dividend accrual
Systemic Risk Buffer confirmed by the PRA at 200 basis points for the Ring Fenced Bank, equivalent to
170 basis points for the Group, 40 basis points lower than previously included in guidance due to management action
As a result of the lower Systemic Risk Buffer and net 30 basis point reduction in the Pillar 2A announced in July 2018,
the Board’s view of the current level of capital required by the Group to grow the business, meet regulatory
requirements and cover uncertainties has reduced from around 13 per cent to around 12.5 per cent, plus a
management buffer of around 1 per cent
Financial targets for 2019 and the longer term reaffirmed
Net interest margin of c.2.90 per cent in 2019 and resilient through the plan period
Ongoing capital build of 170 to 200 basis points per annum
Net asset quality ratio expected to be less than 30 basis points in 2019 and through the plan period
Operating costs to be less than £8 billion in 2019; cost:income ratio expected to fall every year and be in the low 40s
exiting 2020, including remediation
Return on tangible equity of 14 to 15 per cent in 2019
LLOYDS BANKING GROUP PLC Q1 2019 INTERIM MANAGEMENT STATEMENT
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INCOME STATEMENT − UNDERLYING BASIS
Quarter Quarter Quarter ended ended ended 31 Mar 31 Mar 31 Dec 2019 2018 Change 2018 Change £m £m % £m % Net interest income 3,083 3,171 (3) 3,170 (3)
Other income 1,506 1,411 7 1,400 8
Operating lease depreciation (219) (252) 13 (225) 3
Vocalink gain on sale 50 – –
Net income 4,420 4,330 2 4,345 2
Operating costs (1,957) (2,008) 3 (2,151) 9
Remediation (20) (60) 67 (234) 91
Total costs (1,977) (2,068) 4 (2,385) 17
Impairment (275) (258) (7) (197) (40)
Underlying profit 2,168 2,004 8 1,763 23
Restructuring (126) (138) 9 (267) 53
Volatility and other items (339) (174) (95) (270) (26)
Payment protection insurance provision (100) (90) (11) (200) 50
Statutory profit before tax 1,603 1,602 – 1,026 56
Tax expense1 (403) (431) 6 (260) (55)
Statutory profit after tax1 1,200 1,171 2 766 57
Earnings per share 1.49p 1.47p 2 0.88p 69
Banking net interest margin 2.91% 2.93% (2)bp 2.92% (1)bp
Average interest-earning banking assets £433bn £437bn (1) £436bn (1)
Cost:income ratio 44.7% 47.8% (3.1)pp 54.9% (10.2)pp
Cost:income ratio excluding remediation 44.3% 46.4% (2.1)pp 49.5% (5.2)pp
Asset quality ratio 0.25% 0.23% 2bp 0.18% 7bp
Underlying return on tangible equity 17.0% 15.4% 1.6pp 13.6% 3.4pp
Return on tangible equity 12.5% 12.3% 0.2pp 7.8% 4.7pp
KEY BALANCE SHEET METRICS
At 31 Mar At 31 Mar Change At 31 Dec Change2019 2018 % 2018 %
Loans and advances to customers2 £441bn £445bn (1) £444bn (1)
Customer deposits3 £417bn £413bn 1 £416bn –
Loan to deposit ratio 106% 108% (2)pp 107% (1)pp
CET1 ratio pre dividend accrual4,5 14.2% 14.4% (0.2)pp 13.9% 0.3pp
CET1 ratio4,5 13.9% 14.1% (0.2)pp 13.9% –
Transitional MREL ratio4,5 31.5% 27.4% 4.1pp 32.6% (1.1)pp
UK leverage ratio4,5 5.3% 5.3% – 5.6% (0.3)pp
Risk-weighted assets £208bn £211bn (1) £206bn 1
Tangible net assets per share 53.4p 52.3p 1.1p 53.0p 0.4p 1 Comparatives restated to reflect amendments to IAS 12, see basis of presentation. 2 Excludes reverse repos of £49.3 billion (31 March 2018: £21.8 billion, 31 December 2018: £40.5 billion). 3 Excludes repos of £5.0 billion (31 March 2018: £3.3 billion, 31 December 2018: £1.8 billion). 4 The CET1, MREL and leverage ratios at 31 December 2018 are reported on a pro forma basis, reflecting the dividend paid up by the
Insurance business in February 2019 in relation to prior year earnings. The CET1 ratios are also reported post share buyback. 5 Incorporating profits, net of foreseeable dividends (unless otherwise stated), for the period that remain subject to formal verification in
accordance with the Capital Requirements Regulation.
LLOYDS BANKING GROUP PLC Q1 2019 INTERIM MANAGEMENT STATEMENT
Page 3 of 7
QUARTERLY INFORMATION Quarter Quarter Quarter Quarter Quarter ended ended ended ended ended 31 Mar 31 Dec 30 Sept 30 June 31 Mar 2019 2018 2018 2018 2018 £m £m £m £m £m Net interest income 3,083 3,170 3,200 3,173 3,171
Other income 1,506 1,400 1,486 1,713 1,411
Operating lease depreciation (219) (225) (234) (245) (252)
Vocalink gain on sale 50 – – – –
Net income 4,420 4,345 4,452 4,641 4,330
Operating costs (1,957) (2,151) (1,990) (2,016) (2,008)
Remediation (20) (234) (109) (197) (60)
Total costs (1,977) (2,385) (2,099) (2,213) (2,068)
Impairment (275) (197) (284) (198) (258)
Underlying profit 2,168 1,763 2,069 2,230 2,004
Restructuring (126) (267) (235) (239) (138)
Volatility and other items (339) (270) (17) (16) (174)
Payment protection insurance provision (100) (200) – (460) (90)
Statutory profit before tax 1,603 1,026 1,817 1,515 1,602
Tax expense1 (403) (260) (394) (369) (431)
Statutory profit after tax1 1,200 766 1,423 1,146 1,171
Banking net interest margin 2.91% 2.92% 2.93% 2.93% 2.93%
Average interest-earning banking assets £433bn £436bn £435bn £436bn £437bn Cost:income ratio 44.7% 54.9% 47.1% 47.7% 47.8%
Cost:income ratio excluding remediation 44.3% 49.5% 44.7% 43.4% 46.4% Asset quality ratio 0.25% 0.18% 0.25% 0.18% 0.23%
Gross asset quality ratio 0.30% 0.30% 0.30% 0.26% 0.27% Underlying return on tangible equity 17.0% 13.6% 15.9% 17.3% 15.4%
Return on tangible equity 12.5% 7.8% 14.8% 11.9% 12.3% Loans and advances to customers2 £441bn £444bn £445bn £442bn £445bn
Customer deposits3 £417bn £416bn £422bn £418bn £413bn
Loan to deposit ratio 106% 107% 105% 106% 108%
Risk-weighted assets £208bn £206bn £207bn £211bn £211bn
Tangible net assets per share 53.4p 53.0p 51.3p 52.1p 52.3p 1 Comparatives restated to reflect amendments to IAS 12, see basis of presentation. 2 Excludes reverse repos. 3 Excludes repos.
LLOYDS BANKING GROUP PLC Q1 2019 INTERIM MANAGEMENT STATEMENT
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BALANCE SHEET ANALYSIS At 31 Mar At 31 Mar At 31 Dec 2019 2018 Change 2018 Change £bn £bn % £bn %Loans and advances to customers
Open mortgage book 264.1 266.7 (1) 266.6 (1)
Closed mortgage book 20.5 22.8 (10) 21.2 (3)
Credit cards 17.7 18.0 (2) 18.1 (2)
UK Retail unsecured loans 8.1 7.8 4 7.9 3
UK Motor Finance 15.3 13.8 11 14.6 5
Overdrafts 1.2 1.2 – 1.3 (8)
Retail other1 8.5 8.0 6 8.6 (1)
SME2 32.1 31.4 2 31.8 1
Mid Markets 30.6 29.3 4 31.7 (3)
Global Corporates and Financial Institutions 34.3 32.2 7 34.4 –
Commercial Banking other 4.6 8.5 (46) 4.3 7
Wealth 0.9 0.8 13 0.9 –
Central items 2.6 4.0 (35) 3.0 (13)
Loans and advances to customers3 440.5 444.5 (1) 444.4 (1)
Customer deposits
Retail current accounts 75.2 72.7 3 73.7 2
Commercial current accounts2 33.9 29.7 14 34.9 (3)
Retail relationship savings accounts 144.7 148.9 (3) 145.9 (1)
Retail tactical savings accounts 15.6 18.7 (17) 16.8 (7)
Commercial deposits2,4 133.0 129.7 3 130.1 2
Wealth 13.9 13.4 4 14.1 (1)
Central items 0.7 0.3 0.8 (13)
Total customer deposits5 417.0 413.4 1 416.3 –
Total assets6 818.3 805.1 2 797.6 3
Total liabilities6 767.8 756.4 2 747.4 3
Shareholders’ equity 43.8 43.0 2 43.4 1
Other equity instruments 6.5 5.4 20 6.5 –
Non-controlling interests 0.2 0.3 (33) 0.3 (33)
Total equity 50.5 48.7 4 50.2 1
Ordinary shares in issue, excluding own shares 71,165m 72,128m (1) 71,149m – 1 Retail other primarily includes Europe. 2 Includes Retail Business Banking. 3 Excludes reverse repos. 4 Contains all Commercial interest-bearing accounts. 5 Excludes repos. 6 The adoption of IFRS 16 on 1 January 2019 resulted in the recognition of a right-of-use asset of £1.7 billion and lease liabilities of
£1.8 billion.
LLOYDS BANKING GROUP PLC Q1 2019 INTERIM MANAGEMENT STATEMENT
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REVIEW OF PERFORMANCE Continued strong business performance with increased profits and market leading returns
The Group’s statutory profit after tax was £1,200 million, up 2 per cent, with higher underlying profit offset by movements
in below the line items. The Group’s underlying profit of £2,168 million was 8 per cent higher driven by increased net
income and lower operating costs. Earnings per share increased 2 per cent to 1.49 pence and statutory return on
tangible equity remained strong at 12.5 per cent.
Net income of £4,420 million was 2 per cent higher than in the first quarter of 2018 with higher other income and lower
operating lease depreciation. Net interest income of £3,083 million was down 3 per cent reflecting a lower net interest
margin and average interest-earning assets. Net interest margin remained robust at 2.91 per cent and is in line with
guidance, with lower deposit costs and increased contribution from higher hedgeable balances offset by continued
pressure on asset margins. Average interest-earning assets were lower with growth in targeted segments offset by
reduced mortgage balances. Other income increased by 7 per cent including a £136 million benefit in Insurance and
Wealth from the planned change in investment management provider. In addition, the Group has recognised a
£50 million performance related earn out following the 2017 sale of Vocalink. Operating lease depreciation reduced by 13
per cent mainly due to robust used car prices.
Total costs of £1,977 million were 4 per cent lower than in the same period last year driven by lower operating costs and
remediation charges. Operating costs reduced by 3 per cent and the cost:income ratio reduced further to 44.7 per cent
with positive jaws of 6 per cent.
Credit quality remains strong, with no deterioration in credit risk and the gross asset quality ratio of 30 basis points stable
on the previous quarter. The impairment charge increased on the fourth quarter to £275 million with a net asset quality
ratio of 25 basis points, both reflecting expected lower releases and write backs.
Restructuring costs for the quarter were £126 million and down 9 per cent on prior year, primarily reflecting the
completion of the migration of MBNA, severance costs relating to the Group’s strategic investment plans and the initial
costs to establish the personal wealth joint venture with Schroders. Volatility and other items of £339 million includes
adverse movements in banking volatility and an estimated charge for exiting the Standard Life Aberdeen investment
management agreement. An additional charge of £100 million was taken for Payment Protection Insurance in the first
quarter of 2019 reflecting increased costs from higher gross complaint volumes. Net complaints remain in line with the
Group’s expectation of around 13,000 per week.
Balance sheet strength maintained with lower capital requirement
Loans and advances to customers were £441 billion with growth in targeted segments in the last 12 months, including
£0.7 billion in SME and £1.5 billion in UK Motor Finance, offset by a reduction of £4.9 billion in mortgages. Open
mortgage book balances were down £2.5 billion on 31 December 2018 driven by expected maturities and ongoing
pricing discipline. The Group continues to expect the open mortgage book at the year-end to be in line with 2018.
Risk-weighted assets increased in the quarter to £208 billion with the reduction in low risk-weighted mortgage assets in
the last three months offset by the risk-weighted asset increase from the implementation of IFRS 16.
The Group continues to optimise funding and target current account balance growth, with Retail current accounts up
3 per cent over the last 12 months to £75.2 billion (31 March 2018: £72.7 billion) and Commercial Banking current
accounts up 14 per cent over the same period to £33.9 billion (31 March 2018: £29.7 billion). The loan to deposit ratio
was 106 per cent.
Tangible net assets per share increased to 53.4 pence driven by strong underlying profit.
LLOYDS BANKING GROUP PLC Q1 2019 INTERIM MANAGEMENT STATEMENT
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REVIEW OF PERFORMANCE (continued)
The CET1 ratio strengthened to 14.2 per cent before dividend accrual with an increase of 31 basis points in the quarter
primarily driven by underlying performance and the expected one off 11 basis point reduction from the implementation of
IFRS 16. After accruing for dividends the CET1 ratio remains strong at 13.9 per cent. The Group remains well positioned
to meet its minimum requirement for own funds and eligible liabilities (MREL) from 2020 and, as at 31 March 2019, had a
transitional MREL ratio of 31.5 per cent. The UK leverage ratio remains strong at 5.3 per cent.
The Group has been notified by the Prudential Regulation Authority (PRA) that the Systemic Risk Buffer for the Group’s
Ring Fenced Bank will be 200 basis points which equates to 170 basis points at a Group level. This is less than the
210 basis points previously included in the Group’s capital guidance following action to manage the size of the Ring
Fenced Bank. This decrease in the Systemic Risk Buffer follows the net 30 basis point reduction in the Group’s Pillar 2A,
as announced to the market in 2018 and with effect from 1 January 2019. Given these decreases, the Board’s view of
the current level of capital required by the Group to grow the business, meet regulatory requirements and cover
uncertainties has reduced from around 13 per cent to around 12.5 per cent, plus a management buffer of around 1 per
cent.
The Group remains strongly capital generative and continues to expect ongoing capital build of 170 to 200 basis points
per annum. The Group has a progressive and sustainable ordinary dividend policy and the Board will continue to give
consideration to the distribution of surplus capital at the end of the year.
Outlook
We have continued to deliver on our ambitious strategic plan to transform the Group for success in a digital world. While
Brexit uncertainty persists and continued uncertainty could further impact the economy, given the current strong
performance, we are reaffirming all of our financial targets. This includes the net interest margin remaining resilient
around 290 basis points, operating costs below £8 billion in 2019 and a net asset quality ratio below 30 basis points
through the plan. As a result, the Group continues to expect a return on tangible equity of 14 to 15 per cent in 2019 and
ongoing capital build of 170 to 200 basis points per annum.
LLOYDS BANKING GROUP PLC Q1 2019 INTERIM MANAGEMENT STATEMENT
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ADDITIONAL FINANCIAL INFORMATION
1. Banking net interest margin and average interest-earning banking assets Quarter Quarter ended ended 31 Mar 31 Mar 2019 2018 Group net interest income – statutory basis (£m) 2,113 3,791
Insurance gross up (£m) 878 (678)
Volatility and other items (£m) 92 58
Group net interest income – underlying basis (£m) 3,083 3,171
Non-banking net interest (£m)1 22 (9)
Banking net interest income – underlying basis (£m) 3,105 3,162
Net loans and advances to customers (£bn)2 440.5 444.5
Impairment provision and fair value adjustments (£bn) 4.0 4.2
Non-banking items:
Fee based loans and advances (£bn) (6.9) (5.5)
Other non-banking (£bn) (3.4) (5.6)
Gross banking loans and advances (£bn) 434.2 437.6
Averaging (£bn) (0.8) (0.5)
Average interest-earning banking assets (£bn) 433.4 437.1
Banking net interest margin (%) 2.91 2.93
1 2019 includes impact from the implementation of IFRS 16. 2 Excludes reverse repos.
2. Return on tangible equity Quarter Quarter ended ended 31 Mar 31 Mar 2019 2018 Average shareholders' equity (£bn) 43.6 43.3
Average intangible assets (£bn) (5.8) (5.2)
Average tangible equity (£bn) 37.8 38.1 Underlying profit after tax (£m)1 1,636 1,497
Add back amortisation of intangible assets (post tax) (£m) 88 67
Less profit attributable to non-controlling interests and other equity holders (£m)1 (137) (115)
Adjusted underlying profit after tax (£m) 1,587 1,449 Underlying return on tangible equity (%) 17.0 15.4 Group statutory profit after tax (£m)1 1,200 1,171
Add back amortisation of intangible assets (post tax) (£m) 88 67
Add back amortisation of purchased intangible assets (post tax) (£m) 18 31
Less profit attributable to non-controlling interests and other equity holders (£m)1 (137) (115)
Adjusted statutory profit after tax (£m) 1,169 1,154 Statutory return on tangible equity (%) 12.5 12.3 1 Comparatives restated to reflect amendments to IAS 12, see basis of presentation.
LLOYDS BANKING GROUP PLC Q1 2019 INTERIM MANAGEMENT STATEMENT
BASIS OF PRESENTATION This release covers the results of Lloyds Banking Group plc together with its subsidiaries (the Group) for the three months ended 31 March 2019. IFRS 16: The Group adopted IFRS 16 Leases from 1 January 2019 and as permitted elected to apply the standard retrospectively with the cumulative effect of initial application being recognised at that date; as required under this option comparative information has not been restated. Upon initial application the Group recognised a right-of-use asset of £1.7 billion (after offsetting existing lease liabilities) and a corresponding lease obligation of £1.8 billion; there was no impact on shareholders’ equity. IAS 12: The Group has also implemented the amendments to IAS 12 Income Taxes with effect from 1 January 2019 and as a result tax relief on distributions on other equity instruments, previously recognised in equity, is now reported within the tax charge in the income statement. Comparatives have been restated, reducing the tax charge and increasing profit for the quarter ended 31 March 2018 by £24 million; there is no impact on shareholders’ equity or earnings per share. Statutory basis: Statutory profit before tax and statutory profit after tax are included on pages 2 and 3. However, a number of factors have had a significant effect on the comparability of the Group’s financial position and results. Accordingly, the results are also presented on an underlying basis. Underlying basis: The statutory results are adjusted for certain items which are listed below, to allow a comparison of the Group’s underlying performance. − restructuring, including severance related costs, the rationalisation of the non-branch property portfolio, the
establishment of the Schroders strategic partnership, the integration of MBNA and Zurich’s UK workplace pensions and savings business;
− volatility and other items, which includes the effects of certain asset sales, the volatility relating to the Group’s own debt and hedging arrangements and that arising in the insurance businesses, insurance gross up, the unwind of acquisition-related fair value adjustments and the amortisation of purchased intangible assets;
− payment protection insurance provisions. Unless otherwise stated, income statement commentaries throughout this document compare the three months ended 31 March 2019 to the three months ended 31 March 2018, and the balance sheet analysis compares the Group balance sheet as at 31 March 2019 to the Group balance sheet as at 31 December 2018. Alternative performance measures: The Group uses a number of alternative performance measures, including underlying profit, in the discussion of its business performance and financial position throughout this document. There have been no changes to the definitions used by the Group; further information on these measures is set out on page 61 of the Group’s 2018 Results News Release. Capital: Capital and leverage ratios reported as at 31 March 2019 incorporate profits for the quarter, less foreseeable dividends, that remain subject to formal verification in accordance with the Capital Requirements Regulation. The Q1 2019 Interim Pillar 3 Report can be found at: www.lloydsbankinggroup.com/investors/financial-performance/other-disclosures
FORWARD LOOKING STATEMENTS
This document contains certain forward looking statements with respect to the business, strategy, plans and/or results of the Group and its current goals and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about the Group's or its directors' and/or management's beliefs and expectations, are forward looking 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 made by the Group or on its behalf include, but are not limited to: general economic and business conditions in the UK and internationally; market related trends and developments; fluctuations in interest rates, inflation, exchange rates, stock markets and currencies; the ability to access sufficient sources of capital, liquidity and funding when required; changes to the Group'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; the ability to achieve strategic objectives; changing customer behaviour including consumer spending, saving and borrowing habits; changes to borrower or counterparty credit quality; concentration of financial exposure; management and monitoring of conduct risk; instability in the global financial markets, including Eurozone instability, instability as a result of uncertainty surrounding the exit by the UK from the European Union (EU) and as a result of such exit and the potential for other countries to exit the EU or the Eurozone and the impact of any sovereign credit rating downgrade or other sovereign financial issues; 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 and other disasters, adverse weather and similar contingencies outside the Group's control; inadequate or failed internal or external processes or systems; acts of war, other acts of hostility, terrorist acts and responses to those acts, geopolitical, pandemic or other such events; risks relating to climate change; changes in laws, regulations, practices and accounting standards or taxation, including as a result of the exit by the UK from the EU, or a further possible referendum on Scottish independence; changes to regulatory capital or liquidity requirements and similar contingencies outside the Group's control; the policies, decisions and actions of governmental or regulatory authorities or courts in the UK, the EU, the US or elsewhere including the implementation and interpretation of key legislation and regulation together with any resulting impact on the future structure of the Group; the transition from IBORs to alternative reference rates; the ability to attract and retain senior management and other employees and meet its diversity objectives; actions or omissions by the Group's directors, management or employees including industrial action; changes to the Group's post-retirement defined benefit scheme obligations; the extent of any future impairment charges or write-downs caused by, but not limited to, depressed asset valuations, market disruptions and illiquid markets; the value and effectiveness of any credit protection purchased by the Group; the inability to hedge certain risks economically; the adequacy of loss reserves; the actions of competitors, including non-bank financial services, lending companies and digital innovators and disruptive technologies; and exposure to regulatory or competition scrutiny, legal, regulatory or competition proceedings, investigations or complaints. Please refer to the latest Annual Report on Form 20-F filed with the US Securities and Exchange Commission for a discussion of certain factors and risks together with examples of forward looking statements. 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 Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained in this document to reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 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.
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ies
outs
ide
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up'
sco
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ol;
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ua
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oris
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cts
and
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ses
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ose
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eo
po
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nd
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er
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ting
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ima
tech
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ge
;ch
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ge
sin
law
s,re
gu
latio
ns,
pra
ctic
es
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dac
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ntin
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da
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n,
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udin
gas
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pos
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ence
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ges
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uire
men
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ntin
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uts
ide
the
Gro
up'
sco
ntr
ol;
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pol
icie
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and
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fgo
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men
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ato
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thor
ities
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inth
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EU
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else
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ere
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gth
eim
plem
enta
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ltin
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ture
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ctur
eo
fth
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roup
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etr
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ition
from
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Rs
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tern
ativ
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fere
nce
rate
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ea
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ract
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dre
tain
seni
orm
ana
gem
ent
and
oth
erem
ploy
ees
and
mee
tits
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rsity
obj
ectiv
es;
actio
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om
issi
ons
by
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dire
ctor
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ge
men
tor
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clud
ing
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ges
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pos
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ent
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hem
eo
blig
atio
ns;
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en
to
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nyfu
ture
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irmen
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kets
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and
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ctiv
enes
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ny
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dit
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ectio
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sed
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up
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abili
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eco
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ly;
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acy
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rves
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etit
ors
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clud
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-ba
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cial
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ng
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pa
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de
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stig
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Ple
ase
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rto
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late
stA
nn
ualR
ep
ort
on
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rm2
0-F
file
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ithth
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cuss
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ain
fact
ors
and
risks
tog
eth
erw
ithe
xam
ples
of
forw
ard
look
ing
sta
tem
en
ts.
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ep
ta
sre
qu
ire
db
yan
yap
plic
able
law
orre
gul
atio
n,
the
forw
ard
look
ing
sta
tem
en
tsco
ntai
ned
inth
isdo
cum
en
tar
em
ade
as
ofto
da
y's
da
te,
and
the
Gro
up
exp
ress
lydi
scla
ims
any
oblig
atio
nor
und
erta
king
tore
leas
epu
blic
lyan
yup
da
tes
orre
visi
ons
toa
ny
forw
ard
look
ing
sta
tem
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cont
ain
edin
this
doc
umen
tto
refle
cta
ny
cha
nge
inth
eG
rou
p’s
exp
ecta
tions
with
reg
ard
ther
eto
ora
ny
cha
nge
inev
en
ts,
con
ditio
nsor
circ
umst
ance
so
nw
hich
any
such
sta
tem
ent
isb
ase
d.
Th
ein
form
atio
n,
sta
tem
en
tsa
nd
opi
nio
ns
con
tain
ed
inth
isd
ocu
me
nt
don
ot
cons
titu
tea
pub
licof
fer
unde
ran
yap
plic
able
law
oran
offe
rto
sell
any
secu
ritie
sor
finan
cial
inst
rum
ents
oran
yad
vice
orre
com
men
datio
nw
ithre
spec
tto
such
secu
ritie
sor
finan
cial
inst
rum
ents
.
Bas
iso
fp
rese
nta
tio
n
The
resu
ltso
fth
eG
rou
pan
dits
bus
ines
sa
repr
ese
nte
din
this
pres
en
tatio
no
nan
un
derly
ing
bas
is.T
he
prin
cipl
esa
dop
ted
inth
epr
epar
atio
no
fth
eu
nd
erly
ing
bas
iso
fre
port
ing
are
set
out
with
inth
e20
19Q
1In
terim
Man
agem
ent
Sta
tem
ent.
For
war
d lo
okin
g st
atem
ents
LLOYDS BANKING GROUP PLC Q1 2019 INTERIM MANAGEMENT STATEMENT
CONTACTS
For further information please contact:
INVESTORS AND ANALYSTS
Douglas Radcliffe
Group Investor Relations Director
020 7356 1571
Edward Sands
Director of Investor Relations
020 7356 1585
Nora Thoden
Director of Investor Relations
020 7356 2334
CORPORATE AFFAIRS
Grant Ringshaw
External Relations Director
020 7356 2362
Matt Smith
Head of Media Relations
020 7356 3522
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 Banking Group plc, The Mound, Edinburgh, EH1 1YZ
Registered in Scotland No. 95000