The Lemon Fool

The impact of the coronavirus pandemic on the global economy and on people and businesses within the UK has been unprecedented. We remain focused on working together with the Government and our regulators to ensure that we continue to support our customers in this challenging time.

Although our performance has clearly been impacted by the pandemic and the associated challenging economic environment, I am pleased that we are now seeing an encouraging business recovery and, with impairments significantly lower, a return to profitability in the third quarter. In particular, we increased open mortgage book lending by £3.5 billion in the quarter, with a 22 per cent share of approvals building a strong pipeline for the fourth quarter, and have supported businesses with an 18 per cent share of Government support scheme lending. Given the financial performance we were able to further strengthen our capital position to 15.2 per cent and enhance our guidance for impairment and risk-weighted assets.

The pandemic has accelerated many trends around ways of working and digital adoption and our long-run investment in digital propositions has positioned the Group well to continue to support our customers. As a result the number of digital users continued to increase, the proportion of products sold digitally is rising and customer satisfaction is at record levels. Our digital proposition and focus on technological change will remain a priority as we accelerate our transformation.

Societal expectations of companies, particularly regarding sustainability, continue to increase and we are taking action to build an inclusive and more sustainable future. We have announced a Race Action plan to drive cultural change, including a clear target to increase Black representation in senior roles. To support the transition to a more environmentally sustainable future, we have also announced an ambitious goal to help reduce the carbon emissions we finance by over 50 per cent by 2030.

Lloyds Banking Group plays a vital role in the UK economy and I remain very proud of the support that we have provided over the course of 2020. Once again I would like to express my gratitude to all of my colleagues whose dedication and hard work ensures that we continue to deliver vital services to our customers and communities, while supporting those most in need throughout the pandemic.

Although the outlook remains uncertain, our customer-focused strategy and the strength of the Group's business model will allow us to continue to help Britain recover and play our part in helping to return the UK to prosperity. This is fully aligned with the Group's long-term strategic objectives, the position of the franchise and the interests of our shareholders.

António Horta-Osório,

Group Chief Executive

Lloyds Banking Group plc is pleased to announce that, subject to regulatory approval, Charlie Nunn is to be appointed to the role of Group Chief Executive Officer and Executive Director.

Mr. Nunn is currently global Chief Executive, Wealth and Personal Banking at HSBC. Since joining HSBC in 2011, Mr. Nunn has held a range of leadership positions including Global Chief Operating Officer of Retail Banking and Wealth Management, Group Head of Wealth Management and Digital, and Chief Executive of Retail Banking and Wealth Management, assuming his current role in February 2018. He began his career at Accenture where he worked for 13 years in the US, France, Switzerland and the UK and became a Partner. He then moved to McKinsey & Co. as a senior Partner for 5 years.

Robin Budenberg, Non-Executive Director and incoming Chairman from 1 January 2021, said "I am excited about Charlie's vision for Lloyds Banking Group, as well as his passion for and commitment to our purpose of helping Britain prosper. Given his career track record, he will bring world class operational, technology and strategic expertise to build on the strengths of the existing management team. I look forward to welcoming him to the Group."

Charlie said "I feel particularly lucky to be joining Lloyds Banking Group at this important time. Lloyds' history, exceptional people and leading position in the UK means it is uniquely placed to define the future of exceptional customer service in UK financial services. I look forward to building on the work of António and the team and their commitment to helping Britain prosper."

Lloyds Banking Group Plc is canceling bonuses for all staff this year as the Covid-19 pandemic weighs heavily on its earnings.

scrumpyjack wrote:There won't be any dividends then. Bonuses are far higher up the priority list of bank management than dividends.

dealtn wrote:

scrumpyjack wrote:There won't be any dividends then. Bonuses are far higher up the priority list of bank management than dividends.

I know you are probably being humorous, but that isn't true.

The decision seems somewhat hard on the majority of ordinary staff, a large number of whom aren't particularly well paid.

scrumpyjack wrote:

dealtn wrote:

scrumpyjack wrote:There won't be any dividends then. Bonuses are far higher up the priority list of bank management than dividends.

I know you are probably being humorous, but that isn't true.

The decision seems somewhat hard on the majority of ordinary staff, a large number of whom aren't particularly well paid.

I suspect it is generally the same people in many key positions as it was then, and however much 're-education' they have been given a leopard does not change its spots. It is very hard to change the culture of an organisation.

idpickering wrote:Finals here;

https://www.investegate.co.uk/lloyds-ba ... 00041120Q/

Wizard wrote:What I find interesting is the multiple references to the dividend being as much as the PRA would allow. Given the hih CET1 ratio I presume that is not what is capping the dividend, but is it in the public domain what the limiting factor is? Or is this just a case of 'the Board doth protest too much, methinks...'?

dealtn wrote:

idpickering wrote:Finals here;

https://www.investegate.co.uk/lloyds-ba ... 00041120Q/

A slight concern that the net interest margin is falling, but a gradual move back to a more normal policy interest rate will help here, when it arrives.