| Page |
Results for the full year | 1 |
Income statement - underlying basis | 5 |
Key balance sheet metrics | 5 |
Quarterly information | 7 |
Balance sheet analysis | 8 |
Group Chief Executive's statement | 9 |
Strategic Review 2021 | 17 |
Summary of Group results | 23 |
Segmental analysis - underlying basis | 41 |
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Divisional results | |
Retail | 43 |
Commercial Banking | 46 |
Insurance and Wealth | 48 |
Central items | 51 |
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Other financial information | |
Reconciliation between statutory and underlying basis financial information | 52 |
Banking net interest margin and average interest-earning assets | 53 |
Volatility arising in the insurance business | 53 |
Changes in Insurance assumptions | 55 |
Tangible net assets per share | 55 |
Return on tangible equity | 56 |
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Risk management | |
Credit risk portfolio | 57 |
Funding and liquidity management | 70 |
Capital management | 71 |
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Statutory information | |
Condensed consolidated financial statements | 80 |
Consolidated income statement | 80 |
Consolidated statement of comprehensive income | 81 |
Consolidated balance sheet | 82 |
Consolidated statement of changes in equity | 84 |
Consolidated cash flow statement | 89 |
Notes to the condensed consolidated financial statements | 90 |
| |
Forward looking statements | 102 |
Summary of alternative performance measures | 104 |
Contacts | 105 |
| | | | BASIS OF PRESENTATION This release covers the results of Lloyds Banking Group plc together with its subsidiaries (the Group) for the year ended 31 December 2020. Statutory basis: Statutory profit before tax and statutory profit after tax are included within this document. However, a number of factors have had a significant effect on the comparability of the Group's financial position and results. Accordingly, the results are also presented on an underlying basis. Underlying basis: The statutory results are adjusted for certain items which are listed below, to allow a comparison of the Group's underlying performance: - Restructuring, including severance-related costs, property transformation, technology research and development, regulatory programmes and merger, acquisition and integration costs
- Volatility and other items, which includes the effects of certain asset sales, the volatility relating to the Group's hedging arrangements and that arising in the insurance business, the unwind of acquisition-related fair value adjustments and the amortisation of purchased intangible assets
- Payment protection insurance provisions
Analysis of lending and expected credit loss (ECL) allowances are presented on an underlying basis and reconciled to figures prepared on a statutory basis where appropriate. On a statutory basis, purchased or originated credit-impaired (POCI) assets include a fixed pool of mortgages that were purchased as part of the HBOS acquisition at a deep discount to face value reflecting credit losses incurred from the point of origination to the date of acquisition. Over time, these POCI assets will run off as the loans redeem, pay down or losses crystallise. The underlying basis assumes that the lending assets acquired as part of a business combination were originated by the Group and are classified as either Stage 1, 2 or 3 according to the change in credit risk over the period since origination. Underlying ECL allowances have been calculated accordingly. The Group uses the underlying basis to monitor the creditworthiness of the lending portfolio and related ECL allowances. Unless otherwise stated, income statement commentaries throughout this document compare the year ended 31 December 2020 to the year ended 31 December 2019, and the balance sheet analysis compares the Group balance sheet as at 31 December 2020 to the Group balance sheet as at 31 December 2019. Segmental information: During the year ended 31 December 2020, the Group migrated certain customer relationships from the SME business within Commercial Banking to Business Banking within Retail. In addition, Commercial Banking has been resegmented to reflect the division's new client coverage model and is now analysed according to SME, Mid Corporates, Corporate and Institutional, and Other. The Group has also revised its approach to internal funding charges, including the adoption of the Sterling Overnight Index Average (SONIA) interest rate benchmark in place of the London Inter-bank Offered Rate (LIBOR). Comparatives have been restated accordingly. Alternative performance measures: The Group uses a number of alternative performance measures, including underlying profit, in the discussion of its business performance and financial position. Further information on these measures is set out on page 104. | | | | | Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/1131Q_1-2021-2-23.pdf This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. | |