DOCSLIB.ORG

Annual Report and Accounts 2017 About Us Our Purpose Is to Help Britain Prosper

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Annual Report and Accounts 2017 About Us Our Purpose Is to Help Britain Prosper HELPING BRITAIN PROSPER Lloyds Banking Group Annual Report and Accounts 2017 About us Our purpose is to help Britain prosper. We are a UK financial services provider with around 27 million customers and a presence We are creating a responsible business that in nearly every community. Our main business activities are retail and better meets our customers’ needs and a commercial banking, general insurance and long-term savings, provided under culture where our colleagues put customers well recognised brands including Lloyds Bank, Halifax, Bank of Scotland and first. This is key to our long-term success and to Scottish Widows. fulfilling our aim to become the best bank for Our shares are quoted on the London and New York stock exchanges and we are one of customers, colleagues and shareholders. the largest companies in the FTSE 100 index. See more about how we create value for Reporting all our stakeholders on pages 18–27 Just as we operate in an integrated way, we aim to report in an integrated way. We have taken further steps towards this goal this year. As well as reporting our financial results, we also report on our approach to operating responsibly and take into account relevant economic, political, social, regulatory and environmental factors. This Annual Report and Accounts contains forward looking statements with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial condition, performance, results, strategic initiatives and objectives. For further details, reference should be made to the forward looking statements on page 265. Inside this year’s Annual Report Strategic report Governance This icon appears throughout this Group highlights 01 A letter from our Chairman 52 report highlighting how we are Helping Chairman’s statement 02 Board of Directors 54 Britain Prosper. Read more online at Group Chief Executive’s review 04 Group Executive Committee 56 www.lloydsbankinggroup.com Key performance indicators 06 Corporate governance report 58 The external environment 08 Directors’ report 81 View our Annual Report and Our business model 10 Directors’ remuneration report 84 Accounts and other information What we have achieved over the last Other remuneration disclosures 103 about Lloyds Banking Group at three years 12 www.lloydsbankinggroup.com Our strategic planning process 13 Risk management Our next chapter 14 The Group’s approach to risk 108 Doing business responsibly 18 Emerging risks 110 Running a responsible business for all Capital stress testing 111 our stakeholders 21 How risk is managed 111 Environment 26 Risk governance 113 Divisional overview 28 Full analysis of risk categories 115 Risk overview 32 Financial statements Financial results Independent auditors’ report 158 The 2017 Annual Report and Accounts Summary of Group results 39 Consolidated financial statements 166 incorporates the strategic report and the Divisional results 45 Parent company financial statements 255 consolidated financial statements, both of which Other financial information 49 have been approved by the Board of Directors. Other information Shareholder information 263 Five year financial summary 265 On behalf of the Board Forward looking statements 266 Lord Blackwell Abbreviations 267 Chairman Alternative performance measures 267 Lloyds Banking Group 20 February 2018 Subsidiaries and related undertakings 268 Lloyds Banking Group 01 Annual Report and Accounts 2017 Strategic report Strategic Group highlights Financial results Financial Significant strategic progress and a strong financial performance £5.3bn £8.5bn 245bps 13.9% +24% +8% +55bps +0.9pp Statutory profit before tax Underlying profit increased Strong CET1 capital generation Pro forma CET1 ratio after increased significantly pre ordinary dividend and ordinary dividend and share buyback share buyback Governance 3.05p 18bps 46.8% 62.0pts +20% +3bps -1.9pp -0.7pts Ordinary dividend per share Asset quality ratio remains Our market leading cost:income Our net promoter score, a strong, reflecting effective risk ratio further improved respected measure of customer management and the continued satisfaction, remains strong benign credit environment See our key performance indicators on pages 6–7 managementRisk Financial statements How we’ve helped Britain prosper in 2017 Other information >708,000 >124,000 >£20m individuals, charities businesses of all given to the Group’s and businesses trained kinds and sizes independent charitable in digital skills. helped to start up. Foundations. This includes around 300 local people in This includes Karen in Lowestoft who The Foundations have helped more Wolverhampton who have been helped has opened her own hairdressing salon than 2,800 charities across the country, by our Digital Champions to learn new with support from Lloyds Bank. including Newry Muay Thai in Northern skills and stay safe online. Ireland, which received a grant from the Halifax Foundation. Find out more about our Helping Britain Prosper Plan on page 20 02 Lloyds Banking Group Annual Report and Accounts 2017 Chairman’s statement Transforming the Group for success in a digital world The transformation now being undertaken will ensure we maintain the core values of the past while equipping us to succeed in the future. Lord Blackwell Chairman Overview and strategy the core values of the past while equipping us to succeed in the future. It will also ensure I am pleased to report that 2017 has been we use all our capabilities across the Group another successful year with significant to serve our customer needs seamlessly as progress both financially and strategically. an integrated financial service provider. The We have continued to transform the Group pace and scale of this transformation will be to become a safer, more agile and customer challenging to every bank, but we have a focused organisation whilst increasing very strong foundation from which to move profitability. As a result of this progress, the forward. I am confident that our new strategy UK government was able to conclude its will provide the capabilities to continue share sale in May, more than recovering its to deliver for customers, colleagues and initial investment and allowing the Group shareholders and support the communities to return to full private ownership. This in which we operate. landmark event is a tribute to the hard work of all our colleagues in recent years. Capital return The UK financial services sector continues to As a result of the financial progress in the face a number of near term challenges. The year, I am pleased to announce that the Board economic environment remains uncertain, has recommended a final ordinary dividend the level of regulatory change remains high, of 2.05 pence per share, bringing the total competition continues to be fierce and ordinary dividend for 2017 to 3.05 pence per the pace of technological change requires share, an increase of 20 per cent on last year. continuing innovation while posing new threats In addition the Board intends to implement a from data and cyber security. This reinforces share buyback of up to £1 billion. This is in line our conviction that our differentiated, with the Group’s policy to deliver a progressive customer focused, simple and low risk and sustainable ordinary dividend whilst business model is the right approach. It has distributing surplus capital when appropriate helped us deliver over the last few years and to do so. will, I believe continue to do so going forward. However, the rapid pace of technological Our purpose change also brings new opportunities to improve our service to customers with The strong motivation for all of us in Lloyds is faster, more convenient and more extensive the central role we play in Britain’s economy propositions tailored to meet their needs. as the UK’s leading financial services provider. To meet our customer needs effectively in We are clear our purpose as a Group is to Help this new world we will need to transform our Britain Prosper. This means not only providing business operations while building on our outstanding service to our customers, but also traditional strengths. As a Board we have responding to the UK’s social and economic spent considerable time over the past two issues which we believe we are best placed years discussing the path we need to follow to address. to succeed as a ‘Bank of the Future’. This We are enormously proud of this role. provided a solid base for us to develop the Through our products and services, we have next phase of our strategy with the senior been helping the people, businesses and management team. The transformation we communities of Britain for more than 250 years. have now embarked on will ensure we maintain But we want to do even more; we want to Lloyds Banking Group 03 Annual Report and Accounts 2017 Strategic report Strategic Helping Britain Prosper and our contribution to the UK As the UK’s leading financial services provider we are making a significant impact on the UK economy Colleagues Communities Payments Tax Lending Dividends One of the largest £58m given to £14 trillion £2.5bn taxes paid £65bn SME and £2.2bn paid employers in help communities of payments in 2017 Mid Markets in dividends the UK in 2017 processed in 2017 lending portfolio to 2.4 million The UK’s largest = 7 x UK GDP shareholders 260,000 hours corporate tax Biggest mortgage results Financial volunteered payer lender in UK with c.£290bn portfolio Governance be a bank for Britain. Our Helping Britain I have also had the opportunity to travel Despite the uncertain environment, the Prosper Plan takes us beyond our business as around the country to see some of this work, Group has reported increased statutory and usual activities by using our scale and reach, speaking with teams who work directly with underlying profits, strong capital generation, and unites our Group to meet some bold vulnerable customers and visiting charities has announced an increased ordinary dividend commitments.
Load more

Recommended publications
  • INSEAD Europe Campus Boulevard De Constance 77305 Fontainebleau, France Tel: +33 (0)1 6072 4000 Fax: +33 (0)1 6074 5500
    1 INSEAD MBA Graduates 2012 INSEAD Europe Campus Boulevard de Constance 77305 Fontainebleau, France Tel: +33 (0)1 6072 4000 Fax: +33 (0)1 6074 5500 INSEAD Asia Campus 1 Ayer Rajah Avenue Singapore 138676 Tel: +65 6799 5388 Fax: +65 6799 5399 INSEAD Abu Dhabi Campus 4th Street - Muroor Road P.O. Box 48049 Abu Dhabi, United Arab Emirates Tel: +971 2 651 5200 Fax: +971 2 443 9461 www.insead.edu 1 INSEAD MBA Graduates 2012 INSEAD MBA Graduates 2012 MBA Graduates 2012 2012 Employment Statistics A World of Talent INSEAD MBA Graduates 2012 2 INSEAD Fontainebleau INSEAD3 Singapore INSEAD MBA Graduates 2012 Contents From the Director 02 Overall Trends of 2012 03 A World of Talent 04 Profile of 2012 INSEAD MBA graduates 06 Full-time jobs and compensation trends 08 • Job locations 10 • Career changes 12 • Compensation trends by region and country 14 • Corporate Sectors 16 • Consulting 22 • Finance 26 Employers of 2012 INSEAD MBA graduates 30 • Top Employers 30 • The INSEAD Partnership 31 • 2012 Recruiting Companies 32 Summer internships and compensation trends 36 • Companies which hired summer interns in 2012 40 A wide choice of recruiting methods 42 List of countries per region 46 INSEAD MBA Graduates 2012 01 From the Director A year of change and development 94% of our 2012 graduates reported employment within 3 months In true INSEAD tradition, the graduates our important mission to empower our of 2012 were extraordinarily diverse. students to develop lifelong career Among them 83 nationalities were strategies as well as our emphasis on represented and roughly one-third developing meaningful relationships were women.
    [Show full text]
  • Annual Report 2018 / 2019 1 Co
    Annual Report 2018 / 2019 1 CO Contents ntents The 2018/2019 Our Year in Review report is developed by INSEAD Communications through a collaborative process that involves the entire school. We thank everyone in the INSEAD community – students and participants, alumni, faculty and staff – for your contributions to the school’s success this year. It is an honour and privilege to report our accomplishments and how this community is a force for good around the world. 2 Leadership 28 Faculty & 56 Infrastructure 2 From the Chairman Research 56 Digital Infrastructure and Dean 28 Overview 57 Europe Campus 4 Board of Directors 30 Recognition & Awards 58 Asia Campus 5 Executive Committee 33 New Faculty 59 Middle East Campus 38 INSEAD Knowledge 39 A Force for Good 6 Special Features Top 10 60 Constituencies 7 Business and Society: 60 Advisory Council A Year of Impact 60 Fondation Mondiale 10 INSEAD in San Degree INSEAD Francisco 40 Programmes 60 Fondation INSEAD 13 I is for INSEAD and 61 International Council 40 Master Degree Innovation 61 National Councils Programmes 16 Thought Leaders: 42 Class Statistics Profiles in Research 43 Doctoral Programme 19 The Campaign for 44 Career Development Graduating INSEAD Centre 67 Classes 21 60 Years of 47 Employment Statistics Excellence 67 MBA Class of December 2018 70 MBA Class of Executive Finances & 48 July 2019 24 Endowment Education 72 Global Executive MBA 74 Tsinghua-INSEAD 48 Open & Customised 24 Finances Executive MBA Programmes 26 Endowment 75 Executive Master 50 Online Programmes in Consulting and Coaching for Change 52 Advancement 52 Alumni Engagement 54 Giving to INSEAD 2 3 L Over this past academic year, INSEAD’s INSEAD Thought Leaders: Profiles in Research eaders resolve has strengthened into action.
    [Show full text]
  • Annual Review 2017 About Us Our Purpose Is to Help Britain Prosper
    Lloyds Banking Group Annual Review 2017 About us Our purpose is to help Britain prosper. We are a UK financial services provider with around 27 million customers and a presence We are creating a responsible business that in nearly every community. Our main business activities are retail and better meets our customers’ needs and a commercial banking, general insurance and long-term savings, provided under culture where our colleagues put customers well recognised brands including Lloyds Bank, Halifax, Bank of Scotland and first. This is key to our long-term success and Scottish Widows. to fulfilling our aim to become the best bank Our shares are quoted on the London and New York stock exchanges and we are one of for customers, colleagues and shareholders. the largest companies in the FTSE 100 index. Reporting Just as we operate in an integrated way, See more about how we create value for we aim to report in an integrated way. all our stakeholders on pages 18–27 We have taken further steps towards this goal this year. As well as reporting our financial results, we also report on our approach to operating responsibly and take into account relevant economic, political, social, regulatory and environmental factors. This Annual Review contains forward looking statements with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial condition, performance, results, strategic initiatives and objectives. For further details, reference should be made to the forward looking statements on the inside back cover. Inside this year’s Annual Review This icon appears throughout this Group highlights 01 report highlighting how we are Helping Chairman’s statement 02 Britain Prosper.
    [Show full text]
  • Annual Report 2018 / 2019 1 Co
    Annual Report 2018 / 2019 1 CO Contents ntents The 2018/2019 Our Year in Review report is developed by INSEAD Communications through a collaborative process that involves the entire school. We thank everyone in the INSEAD community – students and participants, alumni, faculty and staff – for your contributions to the school’s success this year. It is an honour and privilege to report our accomplishments and how this community is a force for good around the world. 2 Leadership 28 Faculty & 56 Infrastructure 2 From the Chairman Research 56 Digital Infrastructure and Dean 28 Overview 57 Europe Campus 4 Board of Directors 30 Recognition & Awards 58 Asia Campus 5 Executive Committee 33 New Faculty 59 Middle East Campus 38 INSEAD Knowledge 39 A Force for Good 6 Special Features Top 10 60 Constituencies 7 Business and Society: 60 Advisory Council A Year of Impact 60 Fondation Mondiale 10 INSEAD in San Degree INSEAD Francisco 40 Programmes 60 Fondation INSEAD 13 I is for INSEAD and 61 International Council 40 Master Degree Innovation 61 National Councils Programmes 16 Thought Leaders: 42 Class Statistics Profiles in Research 43 Doctoral Programme 19 The Campaign for 44 Career Development Graduating INSEAD Centre 67 Classes 21 60 Years of 47 Employment Statistics Excellence 67 MBA Class of December 2018 70 MBA Class of Executive Finances & 48 July 2019 24 Endowment Education 72 Global Executive MBA 74 Tsinghua-INSEAD 48 Open & Customised 24 Finances Executive MBA Programmes 26 Endowment 75 Executive Master 50 Online Programmes in Consulting and Coaching for Change 52 Advancement 52 Alumni Engagement 54 Giving to INSEAD 2 3 L Over this past academic year, INSEAD’s INSEAD Thought Leaders: Profiles in Research eaders resolve has strengthened into action.
    [Show full text]
  • MBA Graduates 2011 2011 Employment Statistics. a World Of
    MBA Graduates 2011 2011 Employment Statistics. A World of Talent. INSEAD MBA Graduates 2011 INSEAD MBA Graduates 2011 1 Contents From Career Services 2 Highlights of 2011 3 A World of Talent 4 Profile of 2011 INSEAD MBA graduates 6 Full-time jobs and compensation trends 8 • Overview 8 • Job locations 10 • Career changes 12 • Compensation trends by region and country 14 • Corporate Sectors 16 • Consulting 22 • Finance 26 Employers of 2011 INSEAD MBA graduates 30 • Top employers 30 • The INSEAD Partnership 31 • 2011 Recruiting Partners 32 Summer internships and compensation trends 36 • Companies which hired summer interns in 2011 40 A wide choice of recruiting methods 42 List of countries per region 46 2 INSEAD MBA Graduates 2011 INSEAD MBA Graduates 2011 3 From Career Services Highlights of 2011 A school that mirrors the INSEAD’s graduating classes were as In 2011, 82% of our graduates changed diverse as ever – with 86 nationalities, their career in terms of job function, global economy 33% women and an average of 5.5 years’ geography and/or industry (and experience across many sectors. 23% changed all three). Base salaries reflected the wide range of career After a year of record-breaking success In 2011 too, we did set one new record. A Graduates’ career destinations were as destinations and currencies – ranging in 2010, we watched the economic storm staggering 98% of graduates responded to diverse as their origins: 41% Western from €10,600 to €250,000. And though clouds gather over Europe in 2011 with our survey. Europe, 25% Asia Pacific (both roughly mean salaries decreased slightly across some trepidation.
    [Show full text]
  • A World of Talent Financial Times #1 Global MBA Programme Contents
    MBA Employment Statistics 2016 A World of Talent Financial Times #1 Global MBA programme Contents Introduction 02 A World of Talent 04 Profile of 2016 INSEAD MBA Graduates 07 Employment and CompensationTrends 08 • Job Locations 10 • Career Changes 12 • Compensation Trends by Region and Country 14 • Management Consulting 16 • Financial Services 19 • Technology, Media & Telecommunications (TMT) 22 • Corporate Sectors (excluding TMT) 26 • Entrepreneurship 31 Summer Internships and Compensation Trends 32 • Monthly Base Salaries 33 Employers of 2016 INSEAD MBA graduates 35 • Top Employers 35 • The Corporate Associate Programme 35 • Prominent INSEAD Alumni 36 Working with The Career Development Centre 37 List of Recruiting Organisations 41 List of Countries Per Region 50 89% of our December 2015 and July 2016 graduates had secured employment within 3 months of graduation, a remarkable achievement given the intensive nature of our 10-month global MBA programme and the macro-economic uncertainty in some of our traditional sectors and geographies. This year, our students chose exciting roles with more than 300 different employers in 68 countries, which represents by far the most global and diverse reach of any top MBA programme. This is made possible thanks to strong employer relations with Introduction nearly 600 companies and an alumni network of more than 52,000 in more than 89% of our 2016 170 countries. In terms of career change, graduates reported nearly 80% of the class changed one employment dimension of sector, function or country, 3 months after with 27% of the class making simultaneous graduation changes in all 3 dimensions. 2016 was a very good year for the INSEAD 46% of the class joined the management MBA, starting with the programme taking consulting sector, up from 43% last year.
    [Show full text]
  • 1 60 72 41 90 INSEAD Asia Campus 1 Ayer Raja
    INSEAD Europe Campus Boulevard de Constance 77305 Fontainebleau, France Tel: +33 (0)1 60 72 41 90 INSEAD Asia Campus 1 Ayer Rajah Avenue Singapore 138676 Tel: +65 6799 5190 INSEAD Abu Dhabi Campus © INSEAD 2015 - 2016 Henry Koh Bowden, James Matt Stuart, Selected Photos: Method Media Pte Ltd Design: 4th Street - Muroor Road P.O. Box 48049 Abu Dhabi, United Arab Emirates Tel: +971 2 651 5200 www.insead.edu 1 MBA Graduates 2014 2014 Employment Statistics A World of Talent 2 3 Contents From the Director 02 A World of Talent 04 Profile of 2014 INSEAD MBA Graduates 07 Full-time Jobs and Compensation Trends 08 • Job Locations 10 • Career Changes 12 • Compensation Trends by Region and Country 14 • Corporate Sectors 16 • Consulting 22 • Financial Services 26 Employers of 2014 INSEAD MBA graduates 30 • Top Employers 30 • The Corporate Associate Programme 31 • 2014 Recruiting Companies 32 Summer Internships / Projects and Compensation Trends 36 • Monthly Base Salaries 38 • 2014 Internship Employers 40 Recruiting at INSEAD 42 List of Countries Per Region 46 ` From the Director Putting Careers at the heart of the MBA Experience he year of 2014 was another great one Language requirements are becoming much for INSEAD MBA students, with 90% tougher, especially in the Asian markets and Tsecuring employment within 3 months governments around the world are putting up of graduation. This is a quite remarkable figure increasing barriers to immigration, even of for our uniquely global programme, which at highly-qualified and experienced executives. just 10 or 12 months is half the length of its INSEAD is uniquely placed to respond to these world-class peers.
    [Show full text]