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.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

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

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

  • RT @MeikWiking: #Happiness has a price: £2,000. That's how much salary almost half of Brits are willing to sacrifice for more free time (vi…
  • #Happiness has a price: £2,000. That's how much salary almost half of Brits are willing to sacrifice for more free… https://t.co/Hn4L86Ot9T
  • Looking for an easy way to grow your pension pot? Have you tried packed lunches? You can save hundred of pounds a y… https://t.co/23GWscQ2b0

Read previous post:
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