DGAP-News: Lloyds Banking Group PLC / Key word(s): Half Year Results 
Lloyds Banking Group PLC: 2021 Half-Year Results 
2021-07-29 / 11:20 
The issuer is solely responsible for the content of this announcement. 
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Lloyds Banking Group plc 
2021 Half-Year Results 
29 July 2021 
RESULTS FOR THE HALF-YEAR 
"During the first six months of 2021, the Group has delivered a solid financial performance with continued business 
momentum, bolstered by an improved macroeconomic outlook for the UK. While we are seeing clear progress in the vaccine 
roll out and emergence from lockdown restrictions, the coronavirus pandemic continues to have a significant impact on 
the people, businesses and communities of the UK. In this context, the Group remains committed to Helping Britain 
Recover from the pandemic and delivering for all stakeholders." 
William Chalmers 
Interim Group Chief Executive 
Solid financial performance with continued business momentum, bolstered by improved macroeconomic outlook 
  . Good progress on Strategic Review 2021 priorities, including record customer satisfaction scores, improved 
    capabilities in Markets products and a leading payments card spend market share 
  . Announced today the acquisition of Embark, a fast growing investment and retirement platform business. Embark 
    enhances our capabilities to address the attractive mass market and self-directed Wealth segment, completing the 
    Group's Wealth proposition. Embark will also enable the Group to re-platform its pensions and retirement 
    proposition, significantly strengthening its offering in Retirement, an important growth market 
  . Statutory profit before tax of GBP3.9 billion, increased significantly on first half of 2020, benefiting from solid 
    business momentum and a net impairment credit in the period 
  . Net income of GBP7.6 billion, up 2 per cent, with increased average interest-earning assets at GBP441 billion, a strong 
    banking net interest margin of 2.50 per cent and other income of GBP2.4 billion, alongside a reduction in operating 
    lease depreciation 
  . Sustained cost discipline with operating costs of GBP3.7 billion, including the impact of rebuilding variable pay in 
    the context of stronger than expected financial performance 
  . Remediation charge of GBP425 million, materially driven by the GBP91 million regulatory fine relating to the 
    communication of historical insurance renewals, GBP150 million of redress and operational costs for HBOS Reading, and 
    charges in relation to other ongoing legacy programmes 
  . Net impairment credit of GBP656 million, including GBP333 million in the second quarter, as a result of an GBP837 million 
    release driven by improvements to the macroeconomic outlook for the UK, combined with robust credit performance. 
    Management judgements in respect of coronavirus retained, now c.GBP1.2 billion 
Balance sheet and capital strength further enhanced 
  . Loans and advances at GBP447.7 billion, up GBP7.5 billion in the period, driven by strong growth of GBP12.6 billion in 
    the open mortgage book 
  . Customer deposits of GBP474.4 billion up GBP23.7 billion in the period, with continued inflows into the Group's trusted 
    brands, including Retail current accounts which were up GBP9.9 billion in the period. Resulting loan to deposit ratio 
    of 94 per cent, continues to provide a strong liquidity position and significant potential to lend into recovery 
  . Strong capital build of 93 basis points in the first half prior to the interim ordinary dividend. Reintroduced a 
    progressive and sustainable ordinary dividend policy, with an interim ordinary dividend of 0.67 pence per share 
  . CET1 ratio of 16.7 per cent after dividend accrual, significantly ahead of both the ongoing target of c.12.5 per 
    cent, plus a management buffer of c.1 per cent and regulatory requirement of c.11 per cent 
 
 
Outlook 
- Given our solid financial performance and the improved UK macroeconomic outlook, the Group is enhancing its guidance 
for 2021. Based on the Group's current macroeconomic assumptions: 
  .  Net interest margin now expected to be around 250 basis points 
  .  Operating costs now expected to be c.GBP7.6 billion 
  .  Net asset quality ratio now expected to be below 10 basis points 
  .  Return on tangible equity now expected to be c.10 per cent, excluding     the c.2.5 percentage point benefit from 
    tax rate changes 
  .  Risk-weighted assets in 2021 now expected to be below GBP200 billion 
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2021-07-29 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. 
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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:  1222644 
 
End of News   DGAP News Service 
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1222644 2021-07-29


 
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July 29, 2021 05:20 ET (09:20 GMT)