LLOYDS BANKING GROUP PLC
DGAP-News: Lloyds Banking Group PLC / Key word(s): Annual Results
Lloyds Banking Group PLC: 2020 Full Year Results
2021-02-24 / 08:00
The issuer is solely responsible for the content of this announcement.
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2020 Results
News Release
Lloyds Banking Group plc
24 February 2021
CONTENTS
Page
Results for the full year 1
Income statement - underlying basis 5
Key balance sheet metrics 5
Quarterly information 7
Balance sheet analysis 8
Group Chief Executive's statement 9
Strategic Review 2021 17
Summary of Group results 23
Segmental analysis - underlying basis 41
Divisional results
Retail 43
Commercial Banking 46
Insurance and Wealth 48
Central items 51
Other financial information
Reconciliation between statutory and underlying basis financial information 52
Banking net interest margin and average interest-earning assets 53
Volatility arising in the insurance business 53
Changes in Insurance assumptions 55
Tangible net assets per share 55
Return on tangible equity 56
Risk management
Credit risk portfolio 57
Funding and liquidity management 70
Capital management 71
Statutory information
Condensed consolidated financial statements 80
Consolidated income statement 80
Consolidated statement of comprehensive income 81
Consolidated balance sheet 82
Consolidated statement of changes in equity 84
Consolidated cash flow statement 89
Notes to the condensed consolidated financial statements 90
Forward looking statements 102
Summary of alternative performance measures 104
Contacts 105
BASIS OF PRESENTATION
This release covers the results of Lloyds Banking Group plc together with its subsidiaries (the Group)
for the year ended 31 December 2020.
Statutory basis: Statutory profit before tax and statutory profit after tax are included within this
document. 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, property transformation, technology research and
development, regulatory programmes and merger, acquisition and integration costs
. Volatility and other items, which includes the effects of certain asset sales, the volatility
relating to the Group's hedging arrangements and that arising in the insurance business, the unwind
of acquisition-related fair value adjustments and the amortisation of purchased intangible assets
. Payment protection insurance provisions
Analysis of lending and expected credit loss (ECL) allowances are presented on an underlying basis and
reconciled to figures prepared on a statutory basis where appropriate. On a statutory basis, purchased
or originated credit-impaired (POCI) assets include a fixed pool of mortgages that were purchased as
part of the HBOS acquisition at a deep discount to face value reflecting credit losses incurred from
the point of origination to the date of acquisition. Over time, these POCI assets will run off as the
loans redeem, pay down or losses crystallise. The underlying basis assumes that the lending assets
acquired as part of a business combination were originated by the Group and are classified as either
Stage 1, 2 or 3 according to the change in credit risk over the period since origination. Underlying
ECL allowances have been calculated accordingly. The Group uses the underlying basis to monitor the
creditworthiness of the lending portfolio and related ECL allowances.
Unless otherwise stated, income statement commentaries throughout this document compare the year ended
31 December 2020 to the year ended 31 December 2019, and the balance sheet analysis compares the Group
balance sheet as at 31 December 2020 to the Group balance sheet as at 31 December 2019.
Segmental information: During the year ended 31 December 2020, the Group migrated certain customer
relationships from the SME business within Commercial Banking to Business Banking within Retail. In
addition, Commercial Banking has been resegmented to reflect the division's new client coverage model
and is now analysed according to SME, Mid Corporates, Corporate and Institutional, and Other. The Group
has also revised its approach to internal funding charges, including the adoption of the Sterling
Overnight Index Average (SONIA) interest rate benchmark in place of the London Inter-bank Offered Rate
(LIBOR). Comparatives have been restated accordingly.
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.
Further information on these measures is set out on page 104.
Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/1131Q_1-2021-2-23.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. -----------------------------------------------------------------------------------------------------------------------
2021-02-24 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: 1170640
End of News DGAP News Service
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(END) Dow Jones Newswires
February 24, 2021 02:01 ET (07:01 GMT)
