Lloyds Bank Posts Net Income of £15.8 Billion in 2021

  • The financial services provider outlined its digitization strategy.
  • The stock of Lloyds Banking Group dropped by almost 9% on Thursday.

Lloyds Bank, one of the largest financial services providers in the UK, released its results for Q4 and full-year 2021 today. The banking giant saw a jump in net income as the number reached £15.8 billion, which is up 9% compared to 2020.

Lloyds Bank’s statutory profit before tax touched £6.9 billion. The bank posted a statutory profit after tax of £5.9 billion. During the recent period, Lloyds Banking Group increased its digital capabilities significantly to meet the growing demand from customers.

“2021 has been a year of solid financial performance with successful strategic execution, ongoing investment and continued franchise growth. This has enabled the Group to deliver on its customer-focused ambitions, as set out in Strategic Review 2021, as well as on Helping Britain Recover during the pandemic. It has also enabled the Group to offer high levels of capital return to our shareholders. Building on our strong foundations, our purpose of Helping Britain Prosper forms the basis of our new strategy to profitably deliver for all of our stakeholders,” Charlie Nunn, the Group Chief Executive at Lloyds, commented.

Future Outlook

Apart from the recent financial results, Lloyds introduced a new strategy to accelerate the company’s growth across different divisions. By 2024, Lloyds Banking Group is planning to provide £10 billion green mortgages, £8 billion financing for plug-in hybrid/electric vehicles, and £15 billion business green financing. Regarding 2022 guidance, Lloyds is expecting a banking net interest margin above 260 basis points.

“Enabled by maximizing the potential of our dedicated people, technology, and data capabilities, our strategy represents an exciting new chapter for Lloyds Banking Group. I am confident that the Group’s purpose, customer focus, unique business model, and significant competitive strengths embodied in our ambitious strategy will ensure the Group is able to deliver higher, more sustainable long-term returns and capital generation for our shareholders, whilst meeting the needs of broader stakeholders,” Nunn added.

The stock price of Lloyds dipped by 9% during the trading session on Thursday.