Lloyds Bank to reduce costs by $1.5B in 2024
Bank hired more than 2,500 tech, data workers in 2023
Lloyds Bank is modernizing its technology and expects to save 1.2 billion pounds ($1.5 billion) through the efforts in 2024.
The London-based bank’s focus on technology aims “to increase the pace and efficiency of change,” Chief Executive Charlie Nunn said today during the bank’s fourth-quarter earnings call.
According to the earnings presentation, the bank expects to see savings from:
- Growth of the institution;
- Strengthening cost and capital efficiency; and
- The potential of people, technology and data.
Since 2021, the bank has reduced its legacy technology applications by 10% and it filled more than 2,500 tech and data positions in 2023, according to the Q4 earnings presentation.
BIGGER PICTURE: Lloyds joins $1.7 trillion Barclays and $847 billion NatWest in cutting costs through technology investment.
Barclays’ reported Feb. 20 that its total operating expenses fell 6% YoY to $9.4 billion, according to Barclays’ earnings release.
Similarly, NatWest reported Feb. 16 that it has saved $315 million since 2021 through its digital efforts.
BY THE NUMBERS: In Q4, Lloyds reported:
- Net income fell 6% year over year to $5.3 billion;
- Net interest income fell 4% YoY to $4.2 billion; and
- Customer deposits increased less than 1% YoY to $595.8 billion.
TRANSACTIONS: According to the bank’s website, Lloyds has teamed up with the following tech providers since October:
- On Jan. 31, part of Lloyds Banking Group, Cavendish Online, selected Aveni.ai for its AI technology;
- On Oct. 3, 2023, the bank launched its digital ID app, Lloyds Bank Smart ID, with identity verification tech provider Yoti;
- On Oct. 2, 2023, Lloyds launched a new credit card with Mastercard.
[stock_market_widget type=”inline” template=”generic” assets=”LYG” markup=”{name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}” api=”yf”].
Editor’s note: All amounts have been converted to U.S. dollars.
Get ready for Bank Automation Summit U.S. 2024 in Nashville, Tenn., on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.
