Lloyds targets £2 billion cost-cutting as profits rise

Lloyds Banking Group’s profits have jumped by nearly a quarter as it presses on with digitalisation plans amid a £2 billion cost-cutting drive.

The banking group’s new strategy will come into effect from 2027 when a previous five-year plan under chief executive Charlie Nunn ends.

It comes as pre-tax profit came in at £4.3 billion for the six months to the end of June, up 23 per cent on the same period last year.

Bosses say it was driven by increased income and more controlled business costs, while customer lending and deposits increased over the period.

Lloyds says it is on track to have found more than £2 billion of gross cost savings between 2022 and 2026, and is targeting a further £2 billion by 2030.

It hopes to achieve the figure by continuing a digital transformation and modernising the bank’s technology, particularly from deploying artificial intelligence across operations.

Mr Nunn has overseen significant changes since 2022, including transforming digital banking and ramping up the use of artificial intelligence, building up the bank’s wealth arm and cutting hundreds of high street branches.

Lloyds also recently scrapped the Halifax brand.

Mr Nunn said: “We are successfully completing our 2022 to 2026 strategy, focusing on customer experience, pivoting the group to growth and laying the foundations for our exciting new strategy.

“We have strengthened our market leadership, built our digital and artificial intelligence capabilities, and enhanced our cost and capital leadership, while remaining on track to deliver our 2026 financial targets.”

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.