SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
27
April 2017
LLOYDS BANKING GROUP
plc
(Translation of registrant's name into
English)
5th Floor
25 Gresham Street
London
EC2V 7HN
United Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F..X.. Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No ..X..
If
"Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule
12g3-2(b):
82- ________
Index
to Exhibits
Item
No.
1 Regulatory News Service Announcement, dated 27 April
2017
re: 1st
Quarter Results
Lloyds
Banking Group plc
Q1 2017
Interim Management Statement
27
April 2017
|
HIGHLIGHTS FOR THE THREE MONTHS ENDED 31 MARCH 2017
|
|
|
|
Strong underlying performance with significant improvement in
statutory profit and returns
|
|
●
Increase in underlying profit to
£2.1 billion with an underlying return on tangible equity
of 15.1 per cent
|
|
●
Positive operating jaws while credit
quality remains strong with asset quality ratio of 12 basis
points
|
|
●
Statutory profit before tax increased to
£1.3 billion; statutory return on tangible equity of 8.8
per cent
|
|
●
Strong balance sheet maintained with CET1
ratio of 14.5 per cent (pre dividend accrual)
|
|
●
Tangible net assets per share increased to
56.5 pence driven by strong underlying profit
|
|
|
|
Our differentiated UK focused business model continues to
deliver
|
|
●
Simple, efficient and low risk business
model providing competitive advantage
|
|
●
Strong capital generation of
0.7 percentage points
|
|
●
UK government shareholding now below 2
per cent
|
|
|
|
On track to deliver the Group financial targets for 2017 with
longer term guidance maintained
|
|
●
Net interest margin for the year now expected
to be close to 2.80 per cent (pre MBNA)
|
|
●
Expect open book mortgage balances to
stabilise and then grow to close the year in line with 31 December
2016
|
|
●
Asset quality ratio for the year now expected
to be inside existing 25 basis points guidance (pre
MBNA)
|
|
●
Expect 2017 capital generation to be at the
top end of the 170-200 basis points ongoing guidance
range
|
|
●
Continue to target a cost:income ratio of
around 45 per cent exiting 2019 with reductions every
year
|
|
●
Expect to generate a statutory return on
tangible equity of between 13.5 and 15.0 per cent in
2019
|
GROUP CHIEF EXECUTIVE'S STATEMENT
In the
first three months of this year we have delivered strong financial
performance with increased underlying profit, a significant
improvement in statutory profit and returns, and strong capital
generation. These results continue to demonstrate the strength of
our customer focused, simple and low risk business model and our
ability to respond to a challenging operating
environment.
The UK
economy continues to benefit from low unemployment and reduced
levels of indebtedness, and asset quality remains strong and is
stable across the portfolio. We remain committed to supporting the
people, businesses and communities in the UK through our Helping
Britain Prosper Plan and putting customers first. As announced
earlier this month, we are determined that the victims of HBOS
Reading are fairly, swiftly and appropriately compensated and we
have set aside a provision of £100 million in our first
quarter results.
We
continue to make good progress against our strategic priorities of
creating the best customer experience; becoming simpler and more
efficient; and delivering sustainable growth; and we remain on
track to deliver the Group financial targets for 2017, whilst
maintaining our longer term guidance.
António
Horta-Osório
Group Chief Executive
CONSOLIDATED INCOME STATEMENT − UNDERLYING BASIS
|
|
|
Three months ended
|
|
Three
months ended
|
|
|
|
Three
months ended
|
|
|
|
|
|
|
31 Mar
|
|
31
Mar
|
|
|
|
31
Dec
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2016
|
|
Change
|
|
|
|
|
£ million
|
|
£ million
|
|
%
|
|
£ million
|
|
%
|
|
|
Net
interest income
|
|
2,928
|
|
2,906
|
|
1
|
|
2,805
|
|
4
|
|
|
Other
income
|
|
1,482
|
|
1,477
|
|
-
|
|
1,545
|
|
(4)
|
|
|
Total income
|
|
4,410
|
|
4,383
|
|
1
|
|
4,350
|
|
1
|
|
|
Operating
lease depreciation
|
|
(232)
|
|
(193)
|
|
(20)
|
|
(226)
|
|
(3)
|
|
|
Net income
|
|
4,178
|
|
4,190
|
|
-
|
|
4,124
|
|
1
|
|
|
Operating
costs
|
|
(1,968)
|
|
(1,987)
|
|
1
|
|
(2,134)
|
|
8
|
|
|
Impairment
|
|
(127)
|
|
(149)
|
|
15
|
|
(196)
|
|
35
|
|
|
Underlying profit
|
|
2,083
|
|
2,054
|
|
1
|
|
1,794
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volatility
and other items
|
|
(229)
|
|
(1,285)
|
|
|
|
(346)
|
|
|
|
|
Payment
protection insurance provision
|
|
(350)
|
|
-
|
|
|
|
-
|
|
|
|
|
Other
conduct provisions
|
|
(200)
|
|
(115)
|
|
|
|
(475)
|
|
|
|
|
Statutory profit before tax
|
|
1,304
|
|
654
|
|
99
|
|
973
|
|
34
|
|
|
Taxation
|
|
(414)
|
|
(123)
|
|
|
|
(535)
|
|
|
|
|
Profit for the period
|
|
890
|
|
531
|
|
68
|
|
438
|
|
103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
1.1p
|
|
0.6p
|
|
83
|
|
0.4p
|
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking
net interest margin
|
|
2.80%
|
|
2.74%
|
|
6bp
|
|
2.68%
|
|
12bp
|
|
|
Average
interest-earning banking assets
|
|
£431bn
|
|
£438bn
|
|
(2)
|
|
£434bn
|
|
(1)
|
|
|
Cost:income
ratio
|
|
47.1%
|
|
47.4%
|
|
(0.3)pp
|
|
51.7%
|
|
(4.6)pp
|
|
|
Asset
quality ratio
|
|
0.12%
|
|
0.14%
|
|
(2)bp
|
|
0.17%
|
|
(5)bp
|
|
|
Return
on risk-weighted assets
|
|
3.93%
|
|
3.70%
|
|
23bp
|
|
3.26%
|
|
67bp
|
|
|
Underlying
return on tangible equity
|
|
15.1%
|
|
15.0%
|
|
0.1pp
|
|
12.8%
|
|
2.3pp
|
|
|
Statutory
return on tangible equity
|
|
8.8%
|
|
5.7%
|
|
3.1pp
|
|
4.7%
|
|
4.1pp
|
|
|
Statutory
return on required equity
|
|
8.2%
|
|
4.4%
|
|
3.8pp
|
|
3.5%
|
|
4.7pp
|
|
BALANCE SHEET AND KEY RATIOS
|
|
|
At 31 Mar
|
|
At 31 Dec
|
|
Change
|
|
|
|
|
2017
|
|
2016
|
|
%
|
|
|
Loans
and advances to customers
1
|
|
£445bn
|
|
£450bn
|
|
(1)
|
|
|
Customer
deposits
2
|
|
£415bn
|
|
£413bn
|
|
-
|
|
|
Loan to
deposit ratio
|
|
107%
|
|
109%
|
|
(2)pp
|
|
|
Total
assets
|
|
£817bn
|
|
£818bn
|
|
-
|
|
|
Common
equity tier 1 ratio pre 2017 dividend accrual
3
|
|
14.5%
|
|
13.8%
|
|
0.7pp
|
|
|
Common
equity tier 1 ratio
3
|
|
14.3%
|
|
13.8%
|
|
0.5pp
|
|
|
Transitional
total capital ratio
|
|
21.9%
|
|
21.4%
|
|
0.5pp
|
|
|
Leverage
ratio
3
|
|
5.0%
|
|
5.0%
|
|
-
|
|
|
Risk-weighted
assets
|
|
£214bn
|
|
£216bn
|
|
(1)
|
|
|
Tangible
net assets per share
|
|
56.5p
|
|
54.8p
|
|
1.7p
|
|
|
|
|
|
1
|
Excludes
reverse repos of £11.2 billion (31 December 2016:
£8.3 billion).
|
|
2
|
Excludes
repos of £0.4 billion (31 December 2016:
£2.5 billion).
|
|
3
|
The
common equity tier 1 and leverage ratios at 31 December 2016
were reported on a pro forma basis, including the dividend paid by
the Insurance business in February 2017 relating to 2016
earnings.
|
REVIEW OF FINANCIAL PERFORMANCE
Strong underlying performance with significant improvement in
statutory profit and returns
The
Group's underlying profit in the quarter was £2,083 million, 1
per cent higher than the first quarter of 2016, with higher total
income, a further reduction in operating costs and lower impairment
charges. The underlying return on tangible equity remains strong at
15.1 per cent (2016: 15.0 per cent).
Statutory
profit before tax increased to £1,304 million, given the
strong underlying profit and significant reduction in below the
line items. Statutory profit after tax was £890 million and
the return on tangible equity improved to 8.8 per cent (2016: 5.7
per cent).
The
Group's CET1 ratio improved to 14.3 per cent (31 December
2016: 13.8 per cent). The Group generated 0.7 percentage
points of CET1 capital in the quarter pre dividend accrual.
Tangible net assets per share increased to 56.5 pence
(31 December 2016: 54.8 pence).
Total income
|
|
|
Three months ended
|
|
Three
months ended
|
|
|
|
Three
months ended
|
|
|
|
|
|
31 Mar
|
|
31
Mar
|
|
|
|
31
Dec
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2016
|
|
Change
|
|
|
|
£ million
|
|
£ million
|
|
%
|
|
£ million
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
2,928
|
|
2,906
|
|
1
|
|
2,805
|
|
4
|
|
Other
income
|
|
1,482
|
|
1,477
|
|
-
|
|
1,545
|
|
(4)
|
|
Total income
|
|
4,410
|
|
4,383
|
|
1
|
|
4,350
|
|
1
|
|
Operating
lease depreciation¹
|
|
(232)
|
|
(193)
|
|
(20)
|
|
(226)
|
|
(3)
|
|
Net income
|
|
4,178
|
|
4,190
|
|
-
|
|
4,124
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking
net interest margin
|
|
2.80%
|
|
2.74%
|
|
6bp
|
|
2.68%
|
|
12bp
|
|
Average
interest-earning banking assets
|
|
£430.9bn
|
|
£438.2bn
|
|
(2)
|
|
£434.0bn
|
|
(1)
|
|
|
|
|
1
|
Net of
gains on disposal of leased assets.
|
Total
income increased slightly to £4,410 million with small
increases in both net interest income and other
income.
Net
interest income was 1 per cent higher at £2,928 million
reflecting the 6 basis point improvement in net interest margin
partly offset by a 2 per cent reduction in average interest-earning
banking assets. The improvement in net interest margin was driven
by further reductions in wholesale funding and deposit costs, which
more than offset the continued pressure from asset pricing. The
increase in both net interest income and net interest margin from
the fourth quarter 2016 was predominantly driven by lower deposit
costs following pricing actions taken in December. Non-banking net
interest expense reduced to £47 million compared with
£84 million in the first quarter of 2016, due to lower
costs from past liability management exercises and other items. The
Group now expects the net interest margin for the year to be close
to 2.80 per cent, excluding MBNA.
Other
income of £1,482 million was slightly up on the first quarter
of 2016 (£1,477 million). This increase was largely driven by
Consumer Finance following further contract hire fleet leasing
growth in the Lex Autolease business, with slightly weaker Retail
and Commercial Banking income whilst Insurance income was stable
year-on-year and included the benefit of further bulk annuity
transactions.
Operating costs
|
|
|
Three months ended
|
|
Three
months ended
|
|
|
|
Three
months ended
|
|
|
|
|
|
31 Mar
|
|
31
Mar
|
|
|
|
31
Dec
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2016
|
|
Change
|
|
|
|
£ million
|
|
£ million
|
|
%
|
|
£ million
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
1,968
|
|
1,987
|
|
1
|
|
2,134
|
|
8
|
|
Cost:income
ratio
|
|
47.1%
|
|
47.4%
|
|
(0.3)pp
|
|
51.7%
|
|
(4.6)pp
|
|
Operating
jaws
|
|
1%
|
|
|
|
|
|
|
|
|
|
Simplification
savings annual run-rate
|
|
1,051
|
|
495
|
|
|
|
947
|
|
|
Operating
costs were 1 per cent lower than in the first quarter of 2016 at
£1,968 million reflecting tight cost control and further
benefits from the Simplification programme. The Group remains on
track to deliver the £1.4 billion of targeted
Simplification run-rate savings by the end of 2017 and has
delivered £1.1 billion of annual run-rate savings to
date.
The
cost:income ratio improved to 47.1 per cent with positive jaws of 1
per cent. The Group continues to expect the cost:income ratio for
2017 to be lower than 2016 (48.7 per cent).
Impairment
|
|
|
Three months ended
|
|
Three
months ended
|
|
|
|
Three
months ended
|
|
|
|
|
|
|
31 Mar
|
|
31
Mar
|
|
|
|
31
Dec
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2016
|
|
Change
|
|
|
|
|
£ million
|
|
£ million
|
|
%
|
|
£ million
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
impairment charge
|
|
127
|
|
149
|
|
15
|
|
196
|
|
35
|
|
|
Asset
quality ratio
|
|
0.12%
|
|
0.14%
|
|
(2)bp
|
|
0.17%
|
|
(5)bp
|
|
|
Gross
asset quality ratio
|
|
0.23%
|
|
0.22%
|
|
1bp
|
|
0.31%
|
|
(8)bp
|
|
|
Impaired
loans as a % of closing advances
|
|
1.8%
|
|
2.0%
|
|
(0.2)pp
|
|
1.8%
|
|
−
|
|
|
Provisions
as a % of impaired loans
|
|
43.2%
|
|
44.7%
|
|
(1.5)pp
|
|
43.4%
|
|
(0.2)pp
|
|
Credit
quality remains strong and is stable across the portfolio. The
impairment charge was £127 million, compared with £149
million in the first quarter of 2016 and the asset quality ratio
was 12 basis points (2016: 14 basis points) reflecting our prudent
approach to risk and the benefit from debt sales made in the
quarter. The gross asset quality ratio was 23 basis points
(2016: 22 basis points). The Group now expects the asset quality
ratio for the year to be inside our existing guidance of 25 basis
points, excluding MBNA.
Impaired
loans as a percentage of closing advances were 1.8 per cent, in
line with the end of December, with provisions as a percentage of
impaired loans remaining broadly stable at 43 per
cent.
Statutory profit
|
|
|
Three months ended
|
|
Three
months ended
|
|
|
|
Three
months ended
|
|
|
|
|
|
31 Mar
|
|
31
Mar
|
|
|
|
31
Dec
|
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2016
|
|
Change
|
|
|
|
£ million
|
|
£ million
|
|
%
|
|
£ million
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying profit
|
|
2,083
|
|
2,054
|
|
1
|
|
1,794
|
|
16
|
|
Volatility
and other items
|
|
|
|
|
|
|
|
|
|
|
|
Enhanced Capital
Notes
|
|
-
|
|
(790)
|
|
|
|
-
|
|
|
|
Market
volatility and asset sales
|
|
12
|
|
(203)
|
|
|
|
46
|
|
|
|
Amortisation of
purchased intangibles
|
|
(23)
|
|
(84)
|
|
|
|
(85)
|
|
|
|
Restructuring
costs
|
|
(157)
|
|
(161)
|
|
|
|
(232)
|
|
|
|
Fair
value unwind
|
|
(61)
|
|
(47)
|
|
|
|
(75)
|
|
|
|
|
|
(229)
|
|
(1,285)
|
|
|
|
(346)
|
|
|
|
Payment
protection insurance provision
|
|
(350)
|
|
-
|
|
|
|
-
|
|
|
|
Other
conduct provisions
|
|
(200)
|
|
(115)
|
|
|
|
(475)
|
|
|
|
Statutory profit before tax
|
|
1,304
|
|
654
|
|
99
|
|
973
|
|
34
|
|
Taxation
|
|
(414)
|
|
(123)
|
|
|
|
(535)
|
|
|
|
Profit for the period
|
|
890
|
|
531
|
|
68
|
|
438
|
|
103
|
Statutory
profit before tax increased to £1,304 million (2016: £654
million).
The
charge of £790 million for Enhanced Capital Notes in the first
quarter of 2016 represented the write-off of the embedded
derivative and the premium paid on the redemption of the remaining
notes.
Market
volatility and asset sales of £12 million included
positive insurance volatility of £3 million compared to
negative £163 million in the first quarter of
2016.
Restructuring
costs were £157 million (2016: £161 million) and
comprised severance costs relating to the Simplification programme,
the announced rationalisation of the non-branch property portfolio
and the work on implementing the ring-fencing
requirements.
As
previously announced to the market, the results include an
additional £350 million PPI provision following the release of
the revised policy statement by the FCA on 2 March 2017. The
additional provision has been taken to reflect the estimated impact
of the policy statement including the revised arrangements for
Plevin cases, which includes a requirement to proactively contact
customers who have previously had their complaints defended, and
which is likely to increase estimated volumes and redress. The
policy statement also confirmed a two month extension to the time
bar to the end of August 2019.
Other
conduct provisions of £200 million include the
£100 million estimated compensation costs for economic
losses, distress and inconvenience caused to the victims of the
HBOS Reading fraud and £100 million for Retail conduct
matters.
Taxation
The tax
charge was £414 million, representing an effective tax rate of
32 per cent. The high effective tax rate reflects the banking
surcharge and restrictions on the deductibility of conduct
provisions.
Return on tangible equity
The
return on tangible equity improved to 8.8 per cent (2016:
5.7 per cent), reflecting the significant increase in
statutory profit after tax in the period. The Group continues to
expect to generate a statutory return on tangible equity of between
13.5 and 15.0 per cent in 2019.
Balance sheet
|
|
|
At 31 Mar
|
|
At 31 Dec
|
|
Change
|
|
|
|
2017
|
|
2016
|
|
%
|
|
|
|
|
|
|
|
|
|
Loans
and advances to customers
1
|
|
£445bn
|
|
£450bn
|
|
(1)
|
|
Customer
deposits
2
|
|
£415bn
|
|
£413bn
|
|
-
|
|
Loan to
deposit ratio
|
|
107%
|
|
109%
|
|
(2)pp
|
|
|
|
|
|
|
|
|
|
Wholesale
funding
|
|
£106bn
|
|
£111bn
|
|
(4)
|
|
Wholesale
funding <1 year maturity
|
|
£31bn
|
|
£35bn
|
|
(13)
|
|
Of
which money-market funding <1 year maturity
3
|
|
£15bn
|
|
£14bn
|
|
12
|
|
Liquidity
coverage ratio - eligible assets
|
|
£133bn
|
|
£121bn
|
|
10
|
|
|
|
|
|
|
|
|
|
Common
equity tier 1 ratio pre 2017 dividend accrual
4
|
|
14.5%
|
|
13.8%
|
|
0.7pp
|
|
Common
equity tier 1 ratio
4
|
|
14.3%
|
|
13.8%
|
|
0.5pp
|
|
Leverage
ratio
4
|
|
5.0%
|
|
5.0%
|
|
-
|
|
|
|
|
|
|
|
|
|
Tangible
net assets per share
|
|
56.5p
|
|
54.8p
|
|
1.7p
|
|
|
|
|
1
|
Excludes
reverse repos of £11.2 billion (31 December 2016:
£8.3 billion).
|
|
2
|
Excludes
repos of £0.4 billion (31 December 2016:
£2.5 billion).
|
|
3
|
Excludes
balances relating to margins of £2.7 billion
(31 December 2016: £3.2 billion) and settlement
accounts of £1.2 billion (31 December 2016:
£1.8 billion).
|
|
4
|
The
common equity tier 1 and leverage ratios at 31 December 2016
were reported on a pro forma basis, including the dividend paid by
the Insurance business in February 2017 relating to 2016
earnings.
|
Loans
and advances to customers were £445 billion compared with
£450 billion at 31 December 2016. We have seen continued net
lending growth in our key targeted growth areas of Consumer Finance
and SME, but this has been more than offset by a reduction in the
Global Corporates segment, driven by ongoing optimisation for
capital and returns, and some contraction in the open and closed
mortgage portfolios. Whilst open book mortgage balances continued
to decline in the first quarter, it is anticipated that balances
will stabilise and then grow to close the year in line with the
position at 31 December 2016.
The
increase in deposit balances was driven by the continued strong
inflows from Commercial clients.
The
Group's liquidity position remains strong. The increase in liquid
assets in the quarter reflects actions taken in anticipation of the
MBNA acquisition.
The
CET1 ratio improved to 14.3 per cent (31 December 2016: 13.8 per
cent). The Group generated 0.7 percentage points of CET1 capital in
the quarter before accruing for 2017 dividends, driven by the
strong underlying financial performance partly offset by conduct
provisions.
The
Group continues to expect ongoing CET1 capital generation of
between 170 and 200 basis points pre dividend. In 2017, capital
generation is expected to be at the top end of this
range.
STATUTORY CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
Threemonthsended
|
|
Threemonthsended
|
|
|
|
|
31 Mar
|
|
31
Mar
|
|
|
|
|
2017
|
|
2016
|
|
|
Income statement
|
|
£ million
|
|
£ million
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
2,363
|
|
2,761
|
|
|
Other
income, net of insurance claims
|
|
2,027
|
|
612
|
|
|
Total income, net of insurance claims
|
|
4,390
|
|
3,373
|
|
|
Total
operating expenses
|
|
(2,980)
|
|
(2,586)
|
|
|
Impairment
|
|
(106)
|
|
(133)
|
|
|
Profit before tax
|
|
1,304
|
|
654
|
|
|
Taxation
|
|
(414)
|
|
(123)
|
|
|
Profit for the period
|
|
890
|
|
531
|
|
|
|
|
|
|
|
|
|
Profit
attributable to ordinary shareholders
|
|
766
|
|
405
|
|
|
Profit
attributable to other equity holders
1
|
|
105
|
|
101
|
|
|
Profit attributable to equity holders
|
|
871
|
|
506
|
|
|
Profit
attributable to non-controlling interests
|
|
19
|
|
25
|
|
|
Profit for the period
|
|
890
|
|
531
|
|
|
|
|
At 31 Mar
|
|
At 31 Dec
|
|
Balance sheet
|
|
2017
|
|
2016
|
|
|
|
£ million
|
|
£ million
|
|
Assets
|
|
|
|
|
|
Cash
and balances at central banks
|
|
56,461
|
|
47,452
|
|
Trading
and other financial assets at fair value through profit or
loss
|
|
166,068
|
|
151,174
|
|
Derivative
financial instruments
|
|
32,589
|
|
36,138
|
|
Loans
and receivables
|
|
465,972
|
|
488,257
|
|
Available-for-sale
financial assets
|
|
54,330
|
|
56,524
|
|
Other
assets
|
|
41,996
|
|
38,248
|
|
Total assets
|
|
817,416
|
|
817,793
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Deposits
from banks
|
|
22,198
|
|
16,384
|
|
Customer
deposits
|
|
415,149
|
|
415,460
|
|
Trading
and other financial liabilities at fair value through profit or
loss
|
|
56,362
|
|
54,504
|
|
Derivative
financial instruments
|
|
32,075
|
|
34,924
|
|
Debt
securities in issue
|
|
73,862
|
|
76,314
|
|
Liabilities
arising from insurance and investment contracts
|
|
117,286
|
|
114,502
|
|
Subordinated
liabilities
|
|
18,969
|
|
19,831
|
|
Other
liabilities
|
|
31,403
|
|
37,059
|
|
Total liabilities
|
|
767,304
|
|
768,978
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
44,303
|
|
43,020
|
|
Other
equity instruments
|
|
5,355
|
|
5,355
|
|
Non-controlling
interests
|
|
454
|
|
440
|
|
Total equity
|
|
50,112
|
|
48,815
|
|
Total equity and liabilities
|
|
817,416
|
|
817,793
|
|
|
|
|
1
|
The
profit after tax attributable to other equity holders of £105
million (three months to 31 March 2016: £101 million) is
offset in reserves by a tax credit attributable to ordinary
shareholders of £26 million (three months to 31 March 2016:
£20 million).
|
NOTES
1.
Summary of movements in total equity
|
|
|
Shareholders'equity
|
|
Otherequityinstruments
|
|
Non-controllinginterests
|
|
Totalequity
|
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at 1 January 2017
|
|
43,020
|
|
5,355
|
|
440
|
|
48,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
for the period
|
|
871
|
|
-
|
|
19
|
|
890
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
−
|
|
|
Post-retirement
defined benefit pension schemeremeasurements
|
|
440
|
|
-
|
|
-
|
|
440
|
|
|
Movements
in revaluation reserve in respect ofavailable-for-sale financial
assets
|
|
330
|
|
-
|
|
-
|
|
330
|
|
|
Cash
flow hedging reserve
|
|
(37)
|
|
-
|
|
-
|
|
(37)
|
|
|
Currency
translation differences and other
|
|
(9)
|
|
-
|
|
-
|
|
(9)
|
|
|
Tax
|
|
(167)
|
|
-
|
|
-
|
|
(167)
|
|
|
Total other comprehensive income
|
|
557
|
|
-
|
|
-
|
|
557
|
|
|
Total comprehensive income
|
|
1,428
|
|
-
|
|
19
|
|
1,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners
|
|
|
|
|
|
|
|
|
|
|
Distributions
on other equity instruments, net of tax
|
|
(79)
|
|
-
|
|
-
|
|
(79)
|
|
|
Issue
of ordinary shares
|
|
8
|
|
-
|
|
-
|
|
8
|
|
|
Treasury
shares and employee award schemes
|
|
(74)
|
|
-
|
|
-
|
|
(74)
|
|
|
Changes
in non-controlling interests
|
|
-
|
|
-
|
|
(5)
|
|
(5)
|
|
|
Total transactions with owners
|
|
(145)
|
|
-
|
|
(5)
|
|
(150)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 March 2017
|
|
44,303
|
|
5,355
|
|
454
|
|
50,112
|
|
2.
Reconciliation between statutory and underlying basis
results
The
tables below set out the reconciliation from the statutory results
to the underlying basis results.
|
|
|
|
|
Removal of:
|
|
|
|
|
|
|
|
|
|
|
|
Lloyds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking
|
|
Volatility
|
|
|
|
|
|
Other
|
|
|
|
|
|
Group
|
|
and other
|
|
Insurance
|
|
|
|
conduct
|
|
Underlying
|
|
|
|
statutory
|
|
items
1
|
|
gross up
2
|
|
PPI
|
|
provisions
|
|
basis
|
|
Three months ended 31 March 2017
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
2,363
|
|
66
|
|
499
|
|
-
|
|
-
|
|
2,928
|
|
Other
income, net of insurance claims
|
|
2,027
|
|
(21)
|
|
(524)
|
|
-
|
|
-
|
|
1,482
|
|
Total income
|
|
4,390
|
|
45
|
|
(25)
|
|
-
|
|
-
|
|
4,410
|
|
Operating
lease depreciation
|
|
|
|
(232)
|
|
-
|
|
-
|
|
-
|
|
(232)
|
|
Net income
|
|
4,390
|
|
(187)
|
|
(25)
|
|
-
|
|
-
|
|
4,178
|
|
Operating
expenses
3
|
|
(2,980)
|
|
437
|
|
25
|
|
350
|
|
200
|
|
(1,968)
|
|
Impairment
|
|
(106)
|
|
(21)
|
|
-
|
|
-
|
|
-
|
|
(127)
|
|
Profit before tax
|
|
1,304
|
|
229
|
|
-
|
|
350
|
|
200
|
|
2,083
|
|
|
|
|
|
Removal
of:
|
|
|
|
|
|
Lloyds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking
|
|
Volatility
|
|
|
|
|
|
Other
|
|
|
|
|
|
Group
|
|
and other
|
|
Insurance
|
|
|
|
conduct
|
|
Underlying
|
|
|
|
statutory
|
|
items
4
|
|
gross up
2
|
|
PPI
|
|
provisions
|
|
basis
|
|
Three
months ended 31 March 2016
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
2,761
|
|
69
|
|
76
|
|
-
|
|
-
|
|
2,906
|
|
Other
income, net of insurance claims
|
|
612
|
|
979
|
|
(114)
|
|
-
|
|
-
|
|
1,477
|
|
Total
income
|
|
3,373
|
|
1,048
|
|
(38)
|
|
-
|
|
-
|
|
4,383
|
|
Operating
lease depreciation
|
|
|
|
(193)
|
|
-
|
|
-
|
|
-
|
|
(193)
|
|
Net
income
|
|
3,373
|
|
855
|
|
(38)
|
|
-
|
|
-
|
|
4,190
|
|
Operating
expenses
3
|
|
(2,586)
|
|
446
|
|
38
|
|
-
|
|
115
|
|
(1,987)
|
|
Impairment
|
|
(133)
|
|
(16)
|
|
|
|
-
|
|
-
|
|
(149)
|
|
Profit
before tax
|
|
654
|
|
1,285
|
|
-
|
|
-
|
|
115
|
|
2,054
|
|
|
|
|
1
|
Comprises
the effects of asset sales (losses of £12 million);
volatile items (gain of £20 million); liability
management (gain of £4 million; the amortisation of
purchased intangibles (£23 million); restructuring costs
(£157 million, comprising severance costs relating to the
Simplification programme, the announced rationalisation of the
non-branch property portfolio and the work on implementing the
ring-fencing requirements); and the fair value unwind and other
items (loss of £61 million).
|
|
2
|
The
Group's insurance businesses' income statements include income and
expenditure which are attributable to the policyholders of the
Group's long-term assurance funds. These items have no impact in
total upon the profit attributable to equity shareholders and, in
order to provide a clearer representation of the underlying trends
within the business, these items are shown net within the
underlying results.
|
|
3
|
The
statutory basis figure is the aggregate of operating costs and
operating lease depreciation.
|
|
4
|
Comprises
the write-off of the ECN embedded derivative and premium paid on
redemption of the remaining notes (loss of £790 million);
the effects of asset sales (loss of £1 million); volatile
items (loss of £201 million); liability management (loss
of £1 million; the amortisation of purchased intangibles
(£84 million); restructuring costs
(£161 million, principally comprising the severance
related costs under phase II of the Simplification programme); and
the fair value unwind and other items (loss of
£47 million).
|
3.
Returns on tangible equity
The
Group's underlying return on tangible equity for three months to 31
March 2017 was 15.1 per cent (2016: 15.0 per cent). The
Group's statutory return on tangible equity for three months to 31
March 2017 was 8.8 per cent (2016: 5.7 per
cent).
|
|
|
Three months ended
|
|
Three
months ended
|
|
|
|
31 Mar
|
|
31
Mar
|
|
|
|
2017
|
|
2016
|
|
|
|
£bn
|
|
£bn
|
|
Underlying return on tangible equity
|
|
|
|
|
|
Average
shareholders' equity
|
|
43.7
|
|
42.3
|
|
Average
intangible assets
|
|
(3.9)
|
|
(4.0)
|
|
Average tangible equity
|
|
39.8
|
|
38.3
|
|
|
|
|
|
|
|
Underlying
profit after tax (£m)
|
|
1,527
|
|
1,490
|
|
Add
back amortisation of intangible assets (post tax)
(£m)
|
|
49
|
|
43
|
|
Less
profit attributable to other equity holders (£m)
|
|
(79)
|
|
(81)
|
|
Less
profit attributable to non-controlling interests
(£m)
|
|
(19)
|
|
(25)
|
|
Adjusted
underlying profit after tax
|
|
1,478
|
|
1,427
|
|
|
|
|
|
|
|
Underlying
return on tangible equity
|
|
15.1%
|
|
15.0%
|
|
|
|
|
|
|
|
Statutory return on tangible equity
|
|
|
|
|
|
Group
statutory profit after tax (£m)
|
|
890
|
|
531
|
|
Add
back amortisation of intangible assets (post tax)
(£m)
|
|
49
|
|
43
|
|
Add
back amortisation of purchased intangible assets (post tax)
(£m)
|
|
26
|
|
73
|
|
Less
profit attributable to other equity holders (£m)
|
|
(79)
|
|
(81)
|
|
Less
profit attributable to non-controlling interests
(£m)
|
|
(19)
|
|
(25)
|
|
Adjusted
statutory profit after tax
|
|
867
|
|
541
|
|
|
|
|
|
|
|
Statutory
return on tangible equity
|
|
8.8%
|
|
5.7%
|
4.
Quarterly underlying basis information
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
|
|
31 Mar
|
|
31 Dec
|
|
30 Sept
|
|
30 June
|
|
31 Mar
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
2,928
|
|
2,805
|
|
2,848
|
|
2,876
|
|
2,906
|
|
Other
income
|
|
1,482
|
|
1,545
|
|
1,427
|
|
1,616
|
|
1,477
|
|
Total income
|
|
4,410
|
|
4,350
|
|
4,275
|
|
4,492
|
|
4,383
|
|
Operating
lease depreciation
|
|
(232)
|
|
(226)
|
|
(241)
|
|
(235)
|
|
(193)
|
|
Net income
|
|
4,178
|
|
4,124
|
|
4,034
|
|
4,257
|
|
4,190
|
|
Operating
costs
|
|
(1,968)
|
|
(2,134)
|
|
(1,918)
|
|
(2,054)
|
|
(1,987)
|
|
Impairment
|
|
(127)
|
|
(196)
|
|
(204)
|
|
(96)
|
|
(149)
|
|
Underlying profit
|
|
2,083
|
|
1,794
|
|
1,912
|
|
2,107
|
|
2,054
|
|
Enhanced
Capital Notes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(790)
|
|
Market
volatility and asset sales
|
|
12
|
|
46
|
|
265
|
|
331
|
|
(203)
|
|
Amortisation
of purchased intangibles
|
|
(23)
|
|
(85)
|
|
(87)
|
|
(84)
|
|
(84)
|
|
Restructuring
costs
|
|
(157)
|
|
(232)
|
|
(83)
|
|
(146)
|
|
(161)
|
|
Fair
value unwind and other items
|
|
(61)
|
|
(75)
|
|
(46)
|
|
(63)
|
|
(47)
|
|
Payment
protection insurance provision
|
|
(350)
|
|
-
|
|
(1,000)
|
|
-
|
|
-
|
|
Other
conduct provisions
|
|
(200)
|
|
(475)
|
|
(150)
|
|
(345)
|
|
(115)
|
|
Statutory profit before tax
|
|
1,304
|
|
973
|
|
811
|
|
1,800
|
|
654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking
net interest margin
|
|
2.80%
|
|
2.68%
|
|
2.69%
|
|
2.74%
|
|
2.74%
|
|
Average
interest-earning banking assets
|
|
£430.9bn
|
|
£434.0bn
|
|
£435.9bn
|
|
£435.6bn
|
|
£438.2bn
|
|
Cost:income
ratio
|
|
47.1%
|
|
51.7%
|
|
47.5%
|
|
48.2%
|
|
47.4%
|
|
Asset
quality ratio
|
|
0.12%
|
|
0.17%
|
|
0.18%
|
|
0.09%
|
|
0.14%
|
5.
Tangible net assets per share
The
table below shows the reconciliation between the Group's
shareholders' equity and its tangible net assets.
|
|
|
At 31 Mar
|
|
At 31
Dec
|
|
|
|
2017
|
|
2016
|
|
|
|
£m
|
|
£m
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
44,303
|
|
43,020
|
|
Goodwill
|
|
(2,016)
|
|
(2,016)
|
|
Intangible
assets
|
|
(1,742)
|
|
(1,681)
|
|
Purchased
value of in-force business
|
|
(331)
|
|
(340)
|
|
Other,
including deferred tax effects
|
|
155
|
|
170
|
|
Tangible net assets
|
|
40,369
|
|
39,153
|
|
|
|
|
|
|
|
Ordinary
shares in issue, excluding Own shares
|
|
71,476m
|
|
71,413m
|
|
Tangible
net assets per share
|
|
56.5p
|
|
54.8p
|
CAPITAL
AND LEVERAGE DISCLOSURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transitional
|
|
|
|
Fully loaded
|
|
|
|
|
At 31 Mar
|
|
At 31 Dec
|
|
At 31 Mar
|
|
At 31 Dec
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Capital resources
|
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
|
Common
equity tier 1
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity per balance sheet
|
|
44,303
|
|
43,020
|
|
44,303
|
|
43,020
|
|
Deconsolidation
adjustments
1
|
|
1,848
|
|
1,342
|
|
1,848
|
|
1,342
|
|
Other
adjustments
|
|
(4,317)
|
|
(3,893)
|
|
(4,317)
|
|
(3,893)
|
|
Deductions
from common equity tier 1
|
|
(11,246)
|
|
(11,185)
|
|
(11,246)
|
|
(11,185)
|
|
Common equity tier 1 capital
|
|
30,588
|
|
29,284
|
|
30,588
|
|
29,284
|
|
|
|
|
|
|
|
|
|
|
|
Additional
tier 1 instruments
|
|
8,075
|
|
8,626
|
|
5,320
|
|
5,320
|
|
Deductions
from tier 1
|
|
(1,292)
|
|
(1,329)
|
|
-
|
|
-
|
|
Total tier 1 capital
|
|
37,371
|
|
36,581
|
|
35,908
|
|
34,604
|
|
|
|
|
|
|
|
|
|
|
|
Tier 2
instruments and eligible provisions
|
|
11,032
|
|
11,113
|
|
7,580
|
|
7,918
|
|
Deductions
from tier 2
|
|
(1,640)
|
|
(1,571)
|
|
(2,932)
|
|
(2,900)
|
|
Total capital resources
|
|
46,763
|
|
46,123
|
|
40,556
|
|
39,622
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-weighted assets
|
|
213,715
|
|
215,534
|
|
213,715
|
|
215,534
|
|
|
|
|
|
|
|
|
|
|
|
Leverage
|
|
|
|
|
|
|
|
|
|
Statutory
balance sheet assets
|
|
|
|
|
|
817,416
|
|
817,793
|
|
Deconsolidation
and other adjustments
1
|
|
|
|
|
|
(160,140)
|
|
(169,370)
|
|
Off-balance
sheet items
|
|
|
|
|
|
58,536
|
|
58,685
|
|
Total exposure measure
|
|
|
|
|
|
715,812
|
|
707,108
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
|
|
|
|
|
|
|
|
|
|
Common
equity tier 1 capital ratio
|
|
14.3%
|
|
13.6%
|
|
14.3%
|
|
13.6%
|
|
Tier 1
capital ratio
|
|
17.5%
|
|
17.0%
|
|
16.8%
|
|
16.1%
|
|
Total
capital ratio
|
|
21.9%
|
|
21.4%
|
|
19.0%
|
|
18.4%
|
|
Leverage
ratio
2
|
|
|
|
|
|
5.0%
|
|
4.9%
|
|
Modified
UK leverage ratio
3
|
|
|
|
|
|
5.4%
|
|
5.2%
|
|
Average
modified UK leverage ratio
4
|
|
|
|
|
|
5.3%
|
|
|
|
Average
modified UK leverage exposure measure
5
|
|
|
|
|
|
663,917
|
|
|
|
|
|
|
1
|
Deconsolidation
adjustments relate to the deconsolidation of certain Group entities
for regulatory capital and leverage purposes, being primarily the
Group's Insurance business.
|
|
2
|
The
countercyclical leverage ratio buffer is currently
nil.
|
|
3
|
The
Group's leverage ratio on a modified basis, excluding qualifying
central bank claims from the exposure measure in accordance with
the rule modification applied to the UK Leverage Ratio
Framework.
|
|
4
|
The
average modified UK leverage ratio is based on the average of the
month end tier 1 capital and modified exposure measures over the
quarter (1 January 2017 to 31 March 2017). The average of 5.3 per
cent reflected a strengthening tier 1 capital position against a
broadly flat exposure measure over the quarter.
|
|
5
|
The
average modified UK leverage exposure measure is based on the
average of the month end exposure measures over the quarter (1
January 2017 to 31 March 2017).
|
|
|
|
The
European Banking Authority (EBA) published revised guidelines on
Pillar 3 disclosure formats and frequency in December 2016. The
guidelines require specific disclosures to be published on a
quarterly basis which the Group has provided through a separate
report ('Q1 2017 Interim Pillar 3 Report'), a copy of which is
located at
www.lloydsbankinggroup.com/investors/financial-performance/other-disclosures
APPENDIX
Summary
of alternative performance measures
The
Group calculates a number of metrics that are used throughout the
banking and insurance industries, on an underlying basis. A
description of these measures and their calculation is set out
below.
|
|
|
|
|
Asset
quality ratio
|
The
underlying impairment charge for the period (on an annualised
basis) in respect of loans and advances to customers after releases
and write-backs, expressed as a percentage of average gross loans
and advances to customers for the period
|
|
|
Banking
net interest margin
|
Banking
net interest income on customer and product balances in the banking
businesses as a percentage of average gross banking
interest-earning assets for the period
|
|
|
Cost:income
ratio
|
Operating
costs as a percentage of net income calculated on an underlying
basis
|
|
|
Gross
asset quality ratio
|
The
underlying impairment charge for the period (on an annualised
basis) in respect of loans and advances to customers before
releases and write-backs expressed as a percentage of average gross
loans and advances to customers for the period
|
|
|
Impaired
loans as a percentage of closing advances
|
Impaired
loans and advances to customers adjusted to exclude Retail and
Consumer Finance loans in recoveries expressed as a percentage of
closing gross loans and advances to customers
|
|
|
Loan to
deposit ratio
|
The
ratio of loans and advances to customers net of allowance for
impairment losses and excluding reverse repurchase agreements
divided by customer deposits excluding repurchase
agreements
|
|
|
Operating
jaws
|
The
difference between the period on period percentage change in net
income and the period on period change in operating costs
calculated on an underlying basis
|
|
|
Present
value of new business premium
|
The
total single premium sales received in the period (on an annualised
basis) plus the discounted value of premiums expected to be
received over the term of the new regular premium
contracts
|
|
|
Required
equity
|
The
amount of shareholders' equity and non-controlling interests
required to achieve a common equity tier 1 ratio of 12.0 per cent
after allowing for regulatory adjustments and
deductions
|
|
|
Return
on assets
|
Underlying
profit before tax divided by average total assets for the
period
|
|
|
Return
on required equity
|
Statutory
profit after tax adjusted to reflect the notional earnings on any
excess or shortfall in equity less the post-tax profit attributable
to other equity holders, divided by the average required equity for
the period
|
|
|
Return
on risk-weighted assets
|
Underlying
profit before tax divided by average risk-weighted
assets
|
|
|
Return
on tangible equity
|
Statutory
profit after tax adjusted to add back amortisation of intangible
assets, and to deduct profit attributable to non-controlling
interests and other equity holders, divided by average tangible net
assets
|
|
|
Tangible
net assets per share
|
Net
assets excluding intangible assets such as goodwill and
acquisition-related intangibles divided by the weighted average
number of ordinary shares in issue
|
|
|
Underlying
profit
|
Statutory
profit adjusted for certain items as detailed in the Basis of
Preparation
|
|
|
Underlying
return on required equity
|
Underlying
profit after tax at the standard UK corporation tax rate adjusted
to reflect the banking tax surcharge and the notional earnings on
any excess or shortfall in equity less the post-tax profit
attributable to other equity holders divided by the average
required equity for the period
|
|
|
Underlying
return on tangible equity
|
Underlying
profit after tax at the standard UK corporation tax rate adjusted
to add back amortisation of intangible assets, and to deduct profit
attributable to non-controlling interests and other equity holders,
divided by average tangible net assets
|
|
|
|
|
|
|
|
|
|
|
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 2017.
|
|
Statutory basis:
Statutory information
is set out on page 7. 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.
−
losses on redemption of the Enhanced Capital Notes and the
volatility in the value of the embedded equity conversion
feature;
−
market volatility and asset sales, 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 and insurance gross up;
−
the unwind of acquisition-related fair value adjustments and the
amortisation of purchased intangible assets;
−
restructuring costs, comprising severance related costs relating to
the Simplification programme, the costs of implementing regulatory
reform and ring-fencing and the rationalisation of the non-branch
property portfolio; and
−
payment protection insurance and other conduct
provisions.
|
|
Unless
otherwise stated, income statement commentaries throughout this
document compare the three months ended 31 March 2017 to the
three months ended 31 March 2016, and the balance sheet
analysis compares the Group balance sheet as at 31 March 2017
to the Group balance sheet as at 31 December
2016.
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 on pages 2 to 6. Further information on
these measures is set out on page 13.
|
FORWARD LOOKING STATEMENTS
This
document contains certain forward looking statements with respect
to the business, strategy and plans of Lloyds Banking Group and its
current goals and expectations relating to its future financial
condition and performance. Statements that are not historical
facts, including statements about Lloyds Banking 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 the plans, objectives,
expectations, estimates and intentions expressed in such 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 (including low or negative rates),
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; changing customer behaviour including consumer
spending, saving and borrowing habits; changes to borrower or
counterparty credit quality; instability in the global financial
markets, including Eurozone instability, the exit by the UK from
the European Union (EU) and the potential for one or more 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 cyber security; 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; changes in laws,
regulations, 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; the ability to attract and
retain senior management and other employees; requirements or
limitations on the Group as a result of HM Treasury's
investment in the Group; 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 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 Lloyds Banking Group
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward looking
statements. 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.
CONTACTS
For
further information please contact:
INVESTORS AND ANALYSTS
Douglas
Radcliffe
Group
Investor Relations Director
020
7356 1571
douglas.radcliffe@finance.lloydsbanking.com
Andrew
Downey
Director
of Investor Relations
020
7356 2334
andrew.downey@finance.lloydsbanking.com
Edward
Sands
Director
of Investor Relations
020
7356 1585
edward.sands@lloydsbanking.com
CORPORATE AFFAIRS
Fiona
Laffan
Group
Corporate Communications Director
020
7356 2081
fiona.laffan@lloydsbanking.com
Matt
Smith
Head of
Corporate Media
020
7356 3522
matt.smith@lloydsbanking.com
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
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
LLOYDS
BANKING GROUP plc
(Registrant)
By: Douglas
Radcliffe
Name: Douglas
Radcliffe
Title: Group
Investor Relations Director
Date: 27
April 2017
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