Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Lloyds Banking Group plc
  6. News
  7. Summary
    LLOY   GB0008706128

LLOYDS BANKING GROUP PLC

(LLOY)
  Report
Delayed London Stock Exchange  -  11:35 2022-09-30 am EDT
41.39 GBX   +1.66%
09/30Lloyds Banking : Black entrepreneurs are more likely to rely on their community to grow their businesses
PU
09/30Lloyds Banking : hits £1 billion worth of funding on ultra low emission vehicles
PU
09/30Lloyds Banking Group plc Appoints Cathy Turner as an Independent Non-Executive Director and A Member of the Remuneration Committee, Effective 1 November 2022
CI
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Lloyds Banking Group PLC: 2021 Full Year Results

02/24/2022 | 02:02am EDT

DGAP-News: Lloyds Banking Group PLC / Key word(s): Annual Results
Lloyds Banking Group PLC: 2021 Full Year Results

24.02.2022 / 08:00
The issuer is solely responsible for the content of this announcement.


2021 Results

News Release

Lloyds Banking Group plc

24 February 2022

 

 

CONTENTS

  Page
Results for the full year 1
Income statement - underlying basis 4
Key balance sheet metrics 4
Quarterly information 6
Balance sheet analysis 7
Group results - statutory basis 8
Group Chief Executive's statement 10
Our strategy 14
Summary of Group results 20
Segmental analysis - underlying basis 31
   
Divisional results  
Retail 33
Commercial Banking 36
Insurance and Wealth 38
Equity Investments and Central Items 42
   
Other financial information  
Volatility arising in the insurance business 43
Changes in insurance assumptions and methodology 43
Alternative performance measures 45
   
Risk management  
Credit risk portfolio 52
Funding and liquidity management 65
Capital management 66
   
Statutory information  
Condensed consolidated financial statements 77
Consolidated income statement 77
Consolidated statement of comprehensive income 78
Consolidated balance sheet 79
Consolidated statement of changes in equity 81
Consolidated cash flow statement 83
Notes to the condensed consolidated financial statements 84
   
Basis of presentation 104
Forward looking statements 104
Contacts 106
 

Alternative performance measures

The Group uses a number of alternative performance measures, including underlying profit, in the description of its business performance and financial position. These measures are labelled with an 'A' throughout this document. Further information on these measures is set out on page 33. Unless otherwise stated, commentary on pages 1 and 2 and on pages 10 to 13 is given on an underlying basis.

Forward looking statements

This news release contains forward looking statements. For further details, reference should be made to page 104.
 

 

RESULTS FOR THE FULL YEAR

"2021 has been a year of solid financial performance with successful strategic execution, ongoing investment and continued franchise growth. This has enabled the Group to deliver on its customer focused ambitions, as set out in Strategic Review 2021, as well as on Helping Britain Recover during the pandemic. It has also enabled the Group to offer high levels of capital return to our shareholders.

Building on our strong foundations, our purpose of Helping Britain Prosper forms the basis of our new strategy to profitably deliver for all of our stakeholders. We will look to deepen relationships with our existing customers, both consumers and businesses of all sizes, and meet more of their financial needs by making our great products more relevant to them and our channels simpler and more personalised to use. This will set the Group on a higher growth trajectory with more diversified revenue streams, while we retain our strong focus on cost and capital discipline. Enabled by maximising the potential of our dedicated people, technology and data capabilities, our strategy represents an exciting new chapter for Lloyds Banking Group.

I am confident that the Group's purpose, customer focus, unique business model and significant competitive strengths, embodied in our ambitious strategy will ensure the Group is able to deliver higher, more sustainable long-term returns and capital generation for our shareholders, whilst meeting the needs of broader stakeholders."

Charlie Nunn
Group Chief Executive

 

We are Helping Britain Recover with strong progress made under Strategic Review 2021

* Strong performance against Helping Britain Recover commitments, including lending more than £16 billion to over 80,000 first-time homebuyers (target: £10 billion), supporting over 93,000 start-ups and small businesses1 with online support, business advice and business banking accounts (target: 75,000) and expanding the funding available under the Group's discounted green finance initiatives from £3 billion to £5 billion

* Significant progress against our customer focused commitments, including maintaining the Group's record all-channel net promoter score of 69 and increasing net new open book Assets under Administration (AuA) in Insurance and Wealth by over £7 billion

* Continuing to enhance the Group's digital capabilities, with mobile app releases nearly double that of prior year and a three-fold increase in corporate clients onboarded to the Group's new cash management and payments platform

Solid financial performance with continued business momentum

* Statutory profit before tax of £6.9 billion and statutory profit after tax of £5.9 billion, benefitting from higher income and a net impairment credit. Tangible net asset value per share of 57.5 pence, up 5.2 pence per share

* Solid net income of £15.8 billion, up 9 per cent, with underlying net interest income of £11.2 billion, up 4 per cent, underlying other income of £5.1 billion, up 12 per cent and a reduction in operating lease depreciation. Underlying net interest income benefitted from increased average interest-earning banking assets, up 2 per cent and a strengthened banking net interest margin of 2.54 per cent

* Sustained cost discipline with operating costs of £7.6 billion, up 1 per cent compared to the prior year, including the impact of rebuilding variable pay. Remediation charges of £1,300 million, with £775 million in the fourth quarter, including £600 million in the quarter for HBOS Reading

* Asset quality remains strong. Net underlying impairment credit of £1.2 billion, including a net credit of £467 million in the fourth quarter, benefitting from improvements to the macroeconomic outlook for the UK, combined with robust observed credit performance

Balance sheet and capital strength further enhanced

* Loans and advances to customers at £448.6 billion, up £8.4 billion versus prior year, driven by strong growth in the open mortgage book (up £16.0 billion in the year to £293.3 billion)

* Customer deposits up £25.6 billion to £476.3 billion, with Retail current accounts up 14 per cent to £111.5 billion

* Loan to deposit ratio of 94 per cent, providing robust funding and liquidity; significant potential to lend into recovery

* Strong pro forma capital build of 210 basis points, with 51 basis points in the fourth quarter. CET1 ratio of 16.3 per cent (pro forma2), remaining ahead of the ongoing target of c.12.5 per cent, plus a management buffer of c.1 per cent

* Board has recommended a final ordinary dividend of 1.33 pence per share, resulting in a total ordinary dividend for 2021 of 2.00 pence per share, in line with the Group's progressive and sustainable ordinary dividend policy. The Board has also announced its intention to implement an ordinary share buyback programme of up to £2.0 billion, given the strong capital position of the Group

 

2022 guidance

Based on our current macroeconomic assumptions and the Group's new strategy, for 2022 the Group now expects:

* Banking net interest margin above 260 basis points

* Operating costs of c.£8.8 billion on the new basis, with the increase from the 2021 equivalent (£8.3 billion) reflecting stable business-as-usual costs, incremental investment and new businesses3

* Asset quality ratio to be c.20 basis points

* Return on tangible equity of c.10 per cent

* Risk-weighted assets at the end of 2022 to be c.£210 billion

 

1 This figure comprises both for-profit enterprises and not-for-profit enterprises, such as charities. Not-for-profit enterprises comprise approximately 10 per cent of this figure.

2 The pro forma CET1 ratio as at 31 December 2021 reflects both the dividend paid up by the Insurance business in the subsequent first quarter period and the impact of the announced ordinary share buyback programme.

3 From the first quarter of 2022 the Group will include all restructuring costs, apart from merger, acquisition and integration costs, within operating costs. Non lending-related fraud costs, currently included within underlying impairment, will also be reported as part of operating costs. See page 16. Business-as-usual costs are total operating costs less strategic investment and new businesses, including Embark and Citra Living.

 

 

INCOME STATEMENT - UNDERLYING BASISA

  2021     2020     Change
  £m     £m     %
               
Underlying net interest income 11,163     10,773     4
Underlying other income 5,060     4,515     12
Operating lease depreciation (460)     (884)     48
Net income 15,763     14,404     9
Operating costs (7,630)     (7,585)     (1)
Remediation (1,300)     (379)      
Total costs (8,930)     (7,964)     (12)
Underlying profit before impairment 6,833     6,440     6
Underlying impairment credit (charge) 1,207     (4,247)      
Underlying profit 8,040     2,193      
Restructuring (956)     (521)     (83)
Volatility and other items (182)     (361)     50
Payment protection insurance provision -     (85)      
Statutory profit before tax 6,902     1,226      
Tax (expense) credit (1,017)     161      
Statutory profit after tax 5,885     1,387      
               
Earnings per share 7.5p     1.2p     6.3p
Dividends per share - ordinary 2.00p     0.57p     1.43p
Share buyback 2.82p     -      
Share buyback value £2.0bn     -      
               
Banking net interest marginA 2.54%     2.52%     2bp
Average interest-earning banking assetsA £445bn     £435bn     2
Cost:income ratioA 56.7%     55.3%     1.4pp
Asset quality ratioA (0.27%)     0.96%      
Return on tangible equityA 13.8%     2.3%     11.5pp
               
 

 

 

KEY BALANCE SHEET METRICS

  At 31 Dec 2021   At 31 Dec 2020   Change
%
           
Loans and advances to customers £449bn   £440bn   2
Customer deposits £476bn   £451bn   6
Loan to deposit ratioA 94%   98%   (4pp)
CET1 ratio 17.3%   16.2%   1.1pp
Pro forma CET1 ratio1,A 16.3%   16.2%   0.1pp
Transitional MREL ratio 37.2%   36.4%   0.8pp
UK leverage ratio 5.8%   5.8%    
Risk-weighted assets £196bn   £203bn   (3)
Tangible net assets per shareA 57.5p   52.3p   5.2p
 

1 The pro forma CET1 ratio as at 31 December 2021 reflects both the dividend paid up by the Insurance business in the subsequent first quarter period and the impact of the announced ordinary share buyback programme.

Please click on the following link to view the full announcement.
http://www.rns-pdf.londonstockexchange.com/rns/6398C_1-2022-2-23.pdf

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.



24.02.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: Lloyds Banking Group PLC
Gresham Street
EC2V 7HN London
United Kingdom
Phone: 020 7626 1500
Internet: www.lloydsbankinggroup.com
ISIN: GB0008706128
WKN: 871784
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, BX, SIX
EQS News ID: 1287225

 
End of News DGAP News Service

1287225  24.02.2022 

fncls.ssp?fn=show_t_gif&application_id=1287225&application_name=news&site_id=zonebourse_sftp

© EQS 2022
All news about LLOYDS BANKING GROUP PLC
09/30Lloyds Banking : Black entrepreneurs are more likely to rely on their community to grow th..
PU
09/30Lloyds Banking : hits £1 billion worth of funding on ultra low emission vehicles
PU
09/30Lloyds Banking Group plc Appoints Cathy Turner as an Independent Non-Executive Director..
CI
09/29Lloyds Banking : Business confidence stabilises after three month decline
PU
09/29UK watchdog investigating banks failing to help struggling customers
RE
09/29British Payments Watchdog Proposes Reimbursement Mechanism For Scammed Customers
MT
09/28UK banks told to reimburse customers tricked by scams
RE
09/28European ADRs Move Higher in Wednesday Trading
MT
09/28JPMorgan doubles down on UK retail bank Chase
RE
09/28UK Mortgage Lenders HSBC, Santander, Lloyds Pause New Deals
MT
More news
Analyst Recommendations on LLOYDS BANKING GROUP PLC
More recommendations
Financials
Sales 2022 17 732 M 19 758 M 19 758 M
Net income 2022 4 743 M 5 285 M 5 285 M
Net Debt 2022 - - -
P/E ratio 2022 6,07x
Yield 2022 5,93%
Capitalization 28 064 M 31 272 M 31 272 M
Capi. / Sales 2022 1,58x
Capi. / Sales 2023 1,55x
Nbr of Employees 57 955
Free-Float 99,9%
Chart LLOYDS BANKING GROUP PLC
Duration : Period :
Lloyds Banking Group plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends LLOYDS BANKING GROUP PLC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Last Close Price 41,39 GBX
Average target price 64,22 GBX
Spread / Average Target 55,2%
EPS Revisions
Managers and Directors
Charlie Nunn Group Chief Executive Officer & Executive Director
William Leon David Chalmers Chief Financial Officer & Executive Director
Robin Francis Budenberg Chairman
John Chambers Group Chief Information Officer
David James Stanley Oldfield COO & Group Director-Commercial Banking
Sector and Competitors