He concluded: “This will set the group on a higher growth trajectory with more diversified revenue streams, while we retain our strong focus on cost and capital discipline.”
A new mass affluent offering
Last year, Lloyds’ customer deposits increased by £25.6bn to £476.3bn, which included retail current account growth of £14.1bn.
In July, Lloyds bought advised platform Embark in a £390mn deal marking its entry into the mass affluent product space.
In its results today, the bank said these types of customers are “an attractive and currently under-served segment”, acknowledging “a clear gap in the market for a digital-first, integrated offering”.
This, it said, would require supporting customers in the accumulation and decumulation stage of their lives, by joining-up services across banking, housing, pensions and investments.
“The group is uniquely placed to do this,” said the bank. “It starts with the largest mass-affluent customer base in the UK of more than 2mn customers through its banking relationships and a complete product range at scale.”
Lloyds will focus on customers with income or wealth above £75,000, building an integrated banking solution alongside scaling a separate digital wealth offering.
The Embark platform will help the bank draw all these services together. “As part of this, we are targeting an increase of over £5bn in total banking balances for our mass affluent customers by 2024,” it said.
On investments, the bank intends to reach £55bn of new open book net flows in investment and retirement products by 2024 through Embark.
ruby.hinchliffe@ft.com
