DGAP-News: Lloyds Banking Group PLC: 2020 Full Year Results

DGAP-News: Lloyds Banking Group PLC / Key word(s): Annual Results
Lloyds Banking Group PLC: 2020 Full Year Results

24.02.2021 / 08:00
The issuer is solely responsible for the content of this announcement.

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2020 Results
News Release
Lloyds Banking Group plc

24 February 2021


CONTENTS

	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
Divisional results
Retail	43
Commercial Banking	46
Insurance and Wealth	48
Central items	51
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
Risk management
Credit risk portfolio	57
Funding and liquidity management	70
Capital management	71
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.

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24.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language:	English
Company:	Lloyds Banking Group PLC
	Gresham Street
	EC2V 7HN London
	United Kingdom
Phone:	020 7626 1500
Internet:	www.lloydsbankinggroup.com
ISIN:	GB0008706128
WKN:	871784
Listed:	Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, BX, SIX
EQS News ID:	1170640

End of News	DGAP News Service

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1170640 24.02.2021