Lloyds Banking Group outlined an Accelerate 2030 strategy targeting mid-single-digit revenue growth, high-single-digit growth in other operating income and a cost-income ratio below 45% by 2030. Chief executive Charlie Nunn, speaking at a Bank of America event, said the U.K. economy remains resilient but slower-growing, with real GDP expected to expand 1% to 2% over the coming years. The bank plans to invest about £13 billion annually over the next four years while pursuing a further £2 billion in cost savings, after delivering more than £2 billion in gross savings in the prior phase. Lloyds grew assets by £22 billion last year but expects slower asset growth this year as margins tighten, and it operates with a 98% loan-to-deposit ratio. Other operating income, which grew 11% year over year and at an 8% compound annual rate in the prior period, has risen to roughly 34% to 35% of total income from about 30%, with a target of 40% over the plan period. Nunn said each one-percentage-point increase in a bank surcharge would cut profit by about £75 million, but a 2% to 3% increase would not change strategic guidance or investment plans.
Lloyds Banking Group PLCLloyds outlines Accelerate 2030 strategy targeting sub-45% cost-income ratio, £2bn further cost savings, and mid-single-digit revenue growth.
