This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Lloyds Banking Group Plc Management Discusses Q2 2011 Results - Earnings Call Transcript

Our main scenario continues therefore to point to a slow recovery in line with consensus, with continued deleveraging and high inflation for some time to come. On the other hand, as we discussed 5 weeks ago, there are some additional scenarios of additional macroeconomic risks such as the double-dip confrontation [ph] from a sovereign debt crisis, where the probability of occurrence has recently increased. Against this backdrop, our decision to accelerate our noncore disposals and strengthen our funding position in the first half of 2011 was key. Reducing the risk in the balance sheets and adapting our business model to be more resilient to any future volatility in the markets will continue to benefit the financial strength and competitive position of the group.

The business performance in the half year has been resilient, even the economic and regulatory uncertainty and the significant challenges facing the business. These results are in line with our expectations. Tim will provide more detail on the financial performance of the group, with substantially greater disclosure on both core and noncore businesses. We are reporting an underlying profit before tax, which excludes liability management and ECN effects of GBP 1.3 billion in the first half at 36% on the prior year. This is a resilient performance based on falling impairments and slightly lower costs, substantially offsetting the fall in underlying revenues.

In our core businesses, the group generating an underlying profit before tax of GBP 2.9 billion in the first half, and Tim will add more detail on this. At the same time, we have continued to reduce the group's risk profile and we have made good progress in improving the loan-to-deposit ratio from 154% to 144%, reflecting the balance sheet reduction and strong deposit gathering programs during the half year, whilst maintaining our robust capital position. We've continued to make strong progress with integration and this is now in its final stages. The benefits of these in our property procurement and IT-related programs will continue to flow through and drive us towards the overall annual synergy targets of GBP 2 billion by the end of this year. From an IT perspective, we have already rolled out the large counter system to Halifax and Bank of Scotland branches and migrated HBOS ATMs to the Lloyds platform. This puts us in a good position for the final migration of Halifax and Bank of Scotland customer accounts and data to the scale [ph] Lloyds platform. This is an immense exercise involving the migration of approximately 30 million customer accounts but this platform foundation -- this platform would be the foundation for the group's transformation plans.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs