Artificial intelligence (AI) will play a key role in Lloyds Banking Group’s new strategic plan to 2030.
The UK-focused financial services provider aims to achieve a return on tangible equity of more than 18% in 2028 and around 20% in 2030, according to an investor FAQ file published on Thursday (30 July).
Part of Lloyds Banking Group’s strategy is cost and capital discipline. According to the FAQ file, the bank achieved cost savings of 2 billion pounds (approximately $2.7 billion) between 2022 and 2026 by improving productivity and efficiency, modernizing technology, digitizing interactions and streamlining its office footprint.
Lloyds Banking Group expects its cost-to-income ratio to be less than 50% in 2026 and to fall to less than 45% year-on-year in 2030, according to a news release on Thursday.
“We have worked with a clear strategy to strengthen our capabilities, offer new propositions to our customers and position ourselves to benefit from new technology,” Charlie Nunn, executive director and group chief executive of Lloyds Banking Group, said in Thursday’s results conference. “We have significantly modernized our infrastructure and actively leveraged our legacy data assets and technologies.”
Lloyds Banking Group currently operates around 22 million mobile app users, 7 billion digital logons a year and 800 AI models, according to its 2026 first half performance and strategy update published on Thursday.
According to the latest information, the bank expects AI productivity gains of 0.4 to 1.2 percentage points per year over the next 10 years.
In the retail business, Lloyds Banking Group plans to extend the customer journey through agents to improve customer experience, new customer growth efficiency and service costs following updates.
In its commercial operations, the bank is leveraging AI-enhanced tools to improve the productivity of relationship managers and enhance its digital and AI-enabled services to deepen business and commercial banking (BCB) relationships, according to an update.
Lloyds Banking Group’s commercial initiatives include the expansion of auto credit decisions and a new broker portal. We offer simple and flexible payment solutions for small and medium-sized businesses. According to the update, it provides built-in financial solutions to third parties.
Lloyds Banking Group has hired around 11,000 technology and data professionals since 2021, Nunn said on the results call.
“These actions mean our organizations are better equipped to deliver significant change quickly,” Nunn said. “This has created a platform to foster innovation, with clear benefits for both our customers and the Group.”
