Our strategy

Becoming the best bank for customers and our shareholders

Customers are at the heart of our strategy. By using our skills, resources and people effectively we believe we can help Britain prosper and deliver superior and sustainable returns for shareholders.

In June 2011 the Group announced a strategy with the aim of becoming the best bank for customers and shareholders. Our success in transforming the Group since that time is the result of our relentless focus on the delivery of this clear and customer-centred strategy, putting customers truly at the heart of everything we do.

This strategy has enabled us to create a stable, well funded Group with a leading position in UK banking.

Since 2011, we have succeeded in simplifying, reshaping and strengthening the Group to become a low cost, low risk, customer focused UK retail and commercial bank. Coupled with a focus on our core business, and investment in our iconic brands, this has put us in a stronger position to support the UK economic recovery, and that strategy has returned us to profitability.

In October 2014 we announced the next phase of this strategy, designed to build on the significant progress we've made over the last three years, with our vision and purpose to become best bank for customers and shareholders and to Help Britain Prosper still at the core.

Over the next three years, our focus will be to adapt to the changes in financial services brought about by shifts in technology, changing customer behaviour as well as the evolving competitive and regulatory environment. Our strategy through to 2017 has three priorities; creating the best customer experience, becoming simpler and more efficient, and delivering sustainable growth.

We will create the best customer experience by continuing to rebuild trust with our customers, providing a reliable, consistent and convenient service. We will transform our digital capability, providing customers with simpler, seamless interactions across online, mobile and branches, and improving the efficiency of products and services.

We will retain a leading network of branches which will evolve to reflect our customers’ changing preferences, integrating the role of branches with digital and telephony as part of a seamless multi-channel approach.

As we develop our digital capabilities throughout the business, branches will continue to play an important role in our multi-channel approach. We are committed to ensure that over 90 per cent of Lloyds and Bank of Scotland customers will continue to have a branch within five miles of their home while the Halifax branch network will be maintained.

We will become a simpler and more efficient business which can respond rapidly to changing customer needs. We will continue to simplify how we operate for customers by investing in our digital capabilities, further improving our service.  We will continue to reduce our operating costs, enabling investment in our business for future growth. A more efficient business will deliver benefits for our customers.

We will deliver sustainable growth by seeking growth opportunities from across the Group. Our multi-brand strategy will allow us to grow and serve customers in areas where we are currently underrepresented. Through this we will grow returns sustainably for our shareholders. In 2014, we helped more first time buyers than any other Group and we are committed to doing so again in 2015, 2016 and 2017.

We will increase our lending to core customer segments including to small businesses, and will continue to support and benefit from the UK economic recovery.

Over the next three years we expect to commit over £30 billion in additional net lending to UK personal and commercial customers by growing in line with the market in our key retail business lines and growing above the market in areas where we are currently underrepresented.

This will help us achieve our aim of becoming the best bank for our customers and our shareholders while continuing to help Britain prosper.