Lloyds Banking Group Annual Results 2023

Lloyds Banking Group has released its full-year results for 2023, marking a year of active support for individuals and businesses facing continued cost-of-living pressures, while financing their ambitions and growth. The group delivered a strong financial performance in line with 2023 forecasts, driven by revenue growth, cost discipline, and robust asset quality. This performance enabled significant capital generation and increased distributions to shareholders.

Charlie Nunn, the Group Chief Executive, highlights significant progress made in the ambitious strategy announced two years ago to grow the business and deepen customer relationships. He also emphasizes the group's commitment to a more sustainable and inclusive future, with £29 billion in sustainable financing and significant commitments to social housing.

Financial results demonstrate substantial growth, with a statutory net profit of £5.5 billion and net income of £17.9 billion, up 3%. The CET1 capital ratio stands at 13.7%, surpassing the revised target of around 13%. The Board has recommended a final ordinary dividend of 1.84 pence per share, bringing the total ordinary dividend for 2023 to 2.76 pence per share, up 15% from the previous year.

Lloyds Bank expects a net interest margin of over 290 basis points for 2024, operating costs of around £9.3 billion, and capital generation of around 175 basis points. For 2026, the group maintains its forecast for a cost-to-income ratio below 50%, tangible return on equity above 15%, and capital generation exceeding 200 basis points.