Charlie Nunn, Group Chief Executive, talks about how Lloyds Banking Group is delivering against its strategy, and the importance of a vibrant and resilient banking sector in supporting strong communities and the wider economy.

Charlie Nunn
Group Chief Executive
22 February 2024
3 min read

Leading one of the UK’s largest banks means there is rarely time to stand still, but our financial results are a helpful moment to take stock of how we’re delivering on our purpose and strategy – enabling us to become an ever stronger and more intuitive source of support for our customers and communities. 

Following the low growth and persistent inflation of recent years, which has had particular impact on those with lower incomes, small to medium-sized enterprises, and current and aspirational homeowners, the UK needs to grow its way back to economic health and prosperity. This will only be achieved with a strong, innovative and successful financial sector – serving as an effective conduit for investment into our economy, and increasing consumer confidence and financial resilience. 

We at Lloyds Banking Group are pleased to strengthen confidence for our shareholders, with strong capital returns and by maintaining our guidance on the targets set for 2026.  
 

Helping our customers in the moments that matter 

Our purpose is Helping Britain Prosper every day and in life’s key moments – whether finding a first home (supporting around 56,000 first-time buyers in 2023), saving for a deposit, caring for family, investing for retirement, or accessing finance for businesses to diversify and grow.  

Financial resilience also requires longer-term financial planning. At present, 35% of people don’t have enough savings for even the most simple retirement, half of mortgage owners don’t have any life insurance cover, and 9 in 10 people have no critical illness cover. We are deeply active in communities across the UK, and have a responsibility to help turn this around – equipping people with a greater understanding and control over their finances. In particular, we have continued to respond to pressures on the cost of living – offering support to 7.5 million people who we knew might need it, contacting over 15 million customers who could benefit from better savings options, and giving guidance to 600,000 businesses. 

"Our purpose is Helping Britain Prosper every day and in life’s key moments."

Our ambitious strategy and digital transformation is on track

We are making consistent progress against the targets we set ourselves in 2022, underpinned by a robust financial performance for 2023 and growth in our overall income – enabling us to make strategic investments and deliver strong returns to shareholders.  

As the UK’s biggest digital bank, we are undertaking the largest digital transformation in our sector – harnessing new innovations and integrated technology to support our 21.5 million digitally-active customers. In 2023, we had 6 billion log-ons to our mobile app and internet banking – in fact, 150,000 in-app conversations now happen each week and, during last year’s changing interest rate environment, our mobile alerts on savings rates reached many more customers than ever before. We also launched our mobile-first journey for home buyers and home owners – helping them to manage their mortgage digitally, and easily access products such as insurance.  

Our mobile app is putting more power into the hands of our customers and, thanks to ‘Lloyds Bank 360’ and Ready Made Investments, they can make clear, personal choices to maximise their money for the future – a digital tool which is particularly in demand from younger customers. Businesses are also benefitting from mobile-first and digital solutions, contributing to over 20% growth merchant services’ clients. And across the UK, Universities are switching to our industry-leading GEM platform to simplify their management of cash and payments. 

Innovations such as these are enabling colleagues to be there quickly and helpfully for our customers. Whether through community bankers or call-centres, we are adapting to the ways in which people want and need to bank with us.

How we're Helping Britain Prosper

Video | 2 mins

Watch Charlie's message, as he reflects on supporting our stakeholders in 2023 and beyond.

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Supporting a sustainable, inclusive future for people and businesses  

Financial services are critical in enabling the Net Zero transition, which will in turn secure the long-term resilience of our communities, customers and our own sector. We have exceeded our £15 billion target in transition financing for business customers, and are continuing to challenge ourselves with a new target of £30 billion between 2024 and 2026. And following last year’s acquisition of Tusker, we now finance 1 in 8 ultra-low emission vehicles on UK roads – a priority for green transport.  

However, it is clear that parts of our economy are still not able to transition at the speed and scale we need. We are committed to working with Government, industry and civil society in order to accelerate the necessary progress on the pathway to Net Zero.

Greening homes is an important part of that journey and those on the lowest incomes are often paying a high price, if living in poorly-insulated housing.  According to the Centre for Ageing Better, every £1 spent on improving warmth in homes occupied by vulnerable households yields £4 in health benefits. We are providing billions in funding and investment to improve the energy efficiency of the UK’s housing stock – making them warmer, more comfortable and cheaper to run. And we are the biggest supporters of social housing in the UK with over £17 billion in financing for the sector since 2018 – including £2.7 billion in 2023, of which £1.4 billion was for sustainability-linked builds and retrofit. 

However, there remains a chronic shortfall in good-quality, genuinely affordable homes. This unmet demand is pushing up prices, which is contributing to increased homelessness and risk of homelessness. Many Housing Associations face immense retrofit requirements to rightly improve the energy efficiency and fire safety of existing stock, and so with every year that goes by, the gap in provision continues to widen. At Lloyds, we’ve joined forces with our charity partner Crisis to campaign for one million more homes at social rent over the next decade, and we need housing policies with the right incentives and investment structures to achieve this.  

Looking forward with optimism 

A strong and healthy economy is underpinned by a strong and healthy financial sector. Increasing investor confidence is a critical part of this equation, as the long-term strength of the UK economy depends on remaining a competitive and attractive destination for inward investment. As the UK’s leading bank for infrastructure and project-finance, providing nearly 10 billion pounds since 2018, we are proud to have supported many of the largest FDI projects in energy, engineering and infrastructure. It is in all our interests for these high-growth sectors to succeed, and to give international investors the confidence and clarity that they need.

UK banks have built strong foundations to withstand the disruption to the global economy, and absorb some of the impacts on homeowners, businesses, and people with different saving and borrowing needs. Our customers remain resilient overall, and we are committed to support their ambitions today and in the long-term. This requires a good balance – enabling innovation and growth in support of customers, while ensuring resilience and confidence in our financial system.

We want to continue building one of the world’s best banking environments, where consumers have easy access to fair, assured and straightforward products and services across a range of competitive providers. A financial sector primed for long-term success can continue anticipating the evolving expectations of our customers, strengthen financial resilience for people and businesses, and drive UK growth, innovation and prosperity now and for the future.  

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About the author Charlie Nunn

Group Chief Executive

Charlie has over 25 years’ experience in the financial services sector. Prior to joining the Group in August 2021, Charlie held a range of leadership positions at HSBC, including Global Chief Executive, Wealth and Personal Banking, and Group Head of Wealth Management and Digital, as well as Global Chief Operating Officer of Retail Banking and Wealth Management.

Charlie began his career at Accenture, where he worked for 13 years in the US, France, Switzerland and the UK before being made a Partner. He then moved to McKinsey & Co. as a Senior Partner, leading on projects for five years.

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