You are here: Home - Saving & Banking - News -

Lloyds invests to keep pace with changing consumers

0
Written by:
21/02/2018
Lloyds Bank said it will invest £3bn in new technology and staff to adapt to changing consumer banking habits.

The group announced earlier this year that it would be axing 900 jobs, but creating 450 new ones as part of this change.

Chief executive Antonio Horta Osorio told BBC Radio 4: “Our customers want better products they want more convenience. They want safer products.”

Horta Osario said that Lloyds would make an additional £6bn available for small business lending in the UK over the next three years and provide £10bn more to first-time buyers.

Lloyds also said it would look at expanding into the financial planning and retirement market, targeting one million new pension customers by 2020. Laith Khalaf, senior analyst at Hargreaves Lansdown said Scottish Widows is likely to play a pivotal role in this ‘pensions land grab’, adding: “This lends some context to the recently announced prospective withdrawal of £109bn of assets from Standard Life Aberdeen.”

The bank had to set aside more for a new wave of payment protection insurance (PPI) claims. The group has set aside an extra £600m in the fourth quarter of last year to pay compensation over mis-sold PPI, bringing the annual total to £1.6bn. The Financial Conduct Authority campaign featuring Arnold Schwarzenegger is thought to have prompted an increase in compensation claims.

Khalaf added: “We can expect further adjustment of the Lloyds PPI war chest to reflect consumer behaviour as we head towards the August 2019 deadline, though these are likely to be incremental tweaks to the existing budget.”

The latest set of results brought good news for shareholders. The group’s pre-tax profit climbed 24% to £5.3bn. This was behind consensus, but future forecasts were strong and the group increased its full-year dividend by 20% to 3.05p per share.

Khalaf said: “The combination of the dividend and the new share buyback scheme means shareholders are getting a pretty tasty 6% return on their investment.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2286572-rbs-logos
Findings of watchdog report into RBS branded a ‘disgrace’

An influential group of MPs has published the controversial report by the financial regulator detailing its findings of RBS’ mistreatment...

Close