Lloyds focuses on disciplined spending

Lloyds Bank continued to prioritize the optimization of people, technology, and data in the third quarter. As part of its effort to gain efficiencies, the $1.9 trillion bank is focused on cost-effectiveness, Chief Financial Officer William Chalmers said during the bank’s Q3 earnings call on Wednesday. [caption id="attachment_57369501" align="alignright" width="225"] Photo by Whitney McDonald [/caption] Lloyds Bank “delivered a robust financial performance over the first nine months of the year with income growth, disciplined cost management and resilient asset quality together driving strong capital generation," Chalmers said. THE BIGGER PICTURE: The bank this month hosted a strategy update to explain how it plans to achieve maximized operations and cost savings. In the presentation, Lloyds executives discussed cloud migration efforts, new fintech partnerships and modernization. “We have a number of new cloud-based technology platforms that we are adopting,” Chief Executive Jayne Opperman said during the Oct. 5 presentation. “We will build out new products which are highly digital in nature and, deliberately, we do not want to bring across any of the legacy features." BY THE NUMBERS: In Q3, Lloyds reported: Net income of 4.5 billion pounds ($5.4 billion), up 0.69% year over year; Operating expenses of $8 billion, up 5% YoY; Net interest income of $4.12 billion, flat YoY; and Customer deposits of $570 billion, down 2.83% YoY. NOTEWORTHY: The bank has announced the closing of more than 150 branches by the end of 2024 as its customers opt for digital banking channels over physical ones. As of Oct. 9, Lloyds was in talks to buy Metro Bank ’s $3.7 billion mortgage portfolio as London-based Metro looks to restructure. Metro was also talking with NatWest and Barclays about its mortgage business. TRANSACTIONS: This month, the bank announced it had teamed up with three fintechs: Buy now, pay later platform New Day; Digital ID verification company Yoti; and Visa , to provide a virtual card offering to business clients. FLASHBACK: Lloyds in April launched PayMe, a payment transfer service developed in partnership with fintech Bottomline Technologies that allows businesses to send payments when the beneficiary’s bank details are unknown by initiating the payment through an SMS or by scanning a QR code. The bank is also developing multiple uses for generative AI while developing the tech by keeping ethics at the forefront of operations, Head of Data and AI Ethics Paul Dongha told Bank Automation News earlier this year. WHAT THEY ARE SAYING: Bank of America Securities analysts said in a research report that they expect future revenue growth for Lloyds to come from “net interest margin and deposit trends.” “Rising interest rates and a strategic focus on increasing customer wallet share are positives” and, coupled with “limited capital consumption,” will make the bank yield higher profits in the coming quarters, the report stated. MARKET REACTION: Shares of Lloyds Bank [NYSE: LYG] were down 2% from market open to $1.96 as of market close today. Lloyds has a market capitalization of $ 32.5 billion. Editor’s note: All amounts have been converted to U.S. dollars.

Lloyds focuses on disciplined spending

Bank to close more than 150 branches by end of 2024

Podcast: Neobanks fight fraud with rich data points

Tech giants put gen AI to work in Q3

Related Posts

5 questions with … Kasper Tjorntved Davidsen, CAIO and head of AI at Danske Bank

Revolut bids for Swiss banking license in global growth push

Truist deploys AI Call Summaries to 4K employees

Tech giants put gen AI to work in Q3

EMERGING FINTECH DIRECTORY

FinAi Podcast

SPONSORED

Build an Antifragile Strategy to Outperform the Market

How AI and Product Experts Turn Fuzzy Requirements Into Focused Dev-ready Roadmaps

Is Your Technology Supplier There for You?

Connect

Welcome Back!

Retrieve your password

Continue Reading with FinAi News Premium - Less than $2/Day

Lloyds focuses on disciplined spending

Bank to close more than 150 branches by end of 2024

Podcast: Neobanks fight fraud with rich data points

Tech giants put gen AI to work in Q3

Related Posts

FinAi Podcast

Connect

Welcome Back!

Retrieve your password

Unlock This Article

Continue Reading with FinAi News Premium - Less than $2/Day