Aman Rakkar

Amit Goel

Benjamin Caven-Roberts

Benjamin Toms

Christopher Cant

Guy Stebbings

Edward Hugo Firth

Jason Napier

Jonathan Richard Pierce

Andrew Coombs

Edward Firth

Jonathan Pierce

Robin Down

Sheel Shah

- Lloyds Banking Group (LYG) projects the UK economy will experience **1% to 1.5% GDP growth** in the next period, characterized as resilient but slow-growth, while the bank aims to grow faster by focusing on high-growth sectors.  **[1160106_2145054_0]** 
- The company is on track to meet its 2026 financial targets, including **greater than 200 bps of capital** and **greater than 15% Return on Tangible Equity (RoTE)**, supported by approximately **30% revenue growth** and **8% to 10% annual growth in other operating income**.  **[1160106_2145054_2]** 
- LYG has provisioned **£1.15 billion** for motor finance remediation, and following the Supreme Court judgment, is comfortable that no material update is currently needed, anticipating further clarity from the FCA's consultation.  **[1160106_2145054_5]** 
- Capital allocation prioritizes distribution, with a consistent **15% CAGR in sustainable dividends** and share buybacks, alongside profitable balance sheet expansion and infill M&A for strategic capabilities.  **[1160106_2145054_8]** 
- The bank is leveraging technology with **800 AI models live**, including generative AI, and plans to further integrate agentic AI to drive productivity and new growth opportunities in its strategy beyond 2026.  **[1160106_2145054_10]** **[1160106_2145054_14]**

Lloyds Banking Group Discusses Economic Outlook, Strategic Performance, and Future Investments