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Our purpose and strategy

Our strategy is focused on supporting the needs of our customers, colleagues and communities, whilst delivering sustainable returns and creating value for our shareholders.

Our purpose: Helping Britain Prosper

We do this by creating a more sustainable and inclusive future for people and business, shaping finance as a force for good.

Our 2022 to 2026 strategy

We are successfully completing our strategy which will enable us to deliver our vision of being the UK customer-focused digital leader and integrated financial services provider, capitalising on new opportunities, at scale.

Our 2027 to 2030 strategy

We will have three strategic pillars that will enable us to accelerate through reimagined customer experiences, increased Group connectivity, and a productivity step-change, all enabled by pioneering technology.

Our 2022 to 2026 strategy

  • Strengthen cost and capital efficiency 

    As we invest to grow and diversify our revenue, it is essential to maintain our disciplined cost and capital management approach.

    We will also look to further improve capital efficiency as we maintain our strong balance sheet with a disciplined risk approach, pursuing growth in capital-lite, fee generating businesses and generating capital.

    How this is Helping Britain Prosper

    Optimising balance sheet to offset regulatory capital headwinds, helping customers and clients become more resilient, supporting customers, colleagues and communities through challenging times, minimising our carbon footprint and reducing our sustainability related risks all help us achieve a disciplined approach to cost and capital management and strengthen our balance sheet.

    Progress in H1 2026

    • We've generated over £2 billion of gross cost savings between 2022 to 2026 by improving productivity and efficiency, modernising the technology estate, digitising more interactions and rationalising our office footprint.
    • More than 45% improvement in the number of retail customers served per FTE.
    • c.35% reduction in Group run and change technology costs.
    • Around £28 billion of cumulative RWA optimisation alongside elimination of the c.£7 billion pension deficit.
    • This has helped support around £17 billion of shareholder distributions since 2021, with the ordinary dividend per share more than doubling since the first half of 2021.

  • Maximise the potential of people, technology and data

    Delivering our strategy requires the Group to accelerate the intensity with which we use digital technologies and data to support customers. Our colleagues’ expertise and skills are instrumental to our success.

    How this is Helping Britain Prosper

    We are investing in our people, digital technologies and data to enable us to deliver our strategy, thereby delivering for our customers.

    Progress in H1 2026

    • Our progress has been underpinned by a transformation in how the Group operates, radically enhancing our infrastructure, reducing data centres by more than 50% and migrating more than 60% of applications to the cloud.
    • We have hired around 11,000 technology and data specialists to drive digital and AI leadership.
    • The Group announced that GenAI is expected to deliver over £100 million of benefit in 2026. Together, these changes create the platform to serve customers more personally, connect more of the Group’s capabilities and continue improving productivity.

Drive revenue growth and diversification

Growth is a core focus of our strategy. We have prioritised opportunities across each of our businesses to ensure we generate value in the near term as well as creating new revenue streams which deliver over the longer term.

How this is Helping Britain Prosper

Our aim is to create profitable solutions which will help improve access to quality housing across the country, drive regional development, empower customers and businesses to a more prosperous financial future, and support the UK transition to net zero by advancing initiatives that address climate change and protect nature.

Progress in H1 2026

  • The Group returned to growth across its leading and diversified franchises.
  • Leading player in key markets such as structured finance, helping grow Corporate and Institutional income by around 70% annualised since 2021. 
  • Grown workplace assets under administration by more than 70% in the period.
  • These areas of progress have driven a 4% revenue compound annual growth rate (CAGR) for the Group during the period 2022 to 2026, with strategic initiative revenues expected to reach c.£2 billion for 2026 and OOI growing at an 8% CAGR which has further diversified our revenue and increased the sustainability of our shareholder returns.

Our 2026 strategic commitments

Increased confidence in delivering our 2026 strategic commitments.

c.£2bn
additional revenues from strategic initiatives

<50%
cost:income ratio

>16%
RoTE

>200bps
capital generation

See our latest annual report to read about our strategy in more depth.

Annual report

Our 2027 to 2030 strategy: Accelerate 2030


Our new strategy is aligned with our purpose of Helping Britain Prosper and our customer promise to make finance simpler, smarter and more connected for every moment that matters.

We will invest into the next phase of growth to deliver long-term sustainable value creation through reimagined customer experiences, increased Group connectivity and a productivity step-change, all enabled by pioneering technology.

In this video, Charlie Nunn, Group Chief Executive, gives an overview of this next step for the business.

Accelerate 2030

Detail on the three pillars, objectives and projected value of our 2027 to 2030 strategy.

Grow the core

Innovate to deepen and diversify

Simplify to outperform

Our 2027 to 2030 strategic commitments

Continued income growth

Mid-single-digit CAGR

Improving operating leverage

<45% cost:income ratio in 2030

Stronger, sustainable returns

c.20% RoTE in 2030​

Growing capital generation

>225 basis points in 2030​

See our half year presentation to read more about our upcoming strategy.

2026 strategy presentation

How we're Helping Britain Prosper

 These are some of the ways that we're delivering on our purpose of Helping Britain Prosper.

Access to housing

We aspire to contribute to a UK in which all households have access to affordable, safe and sustainable homes in places they want to live.

Empowering customers

Through providing the right support, tools and resources, we're empowering our customers and businesses to meet their financial goals and work towards a more prosperous future.

Regional development and communities

Supporting individuals, businesses and communities across the UK to grow and thrive.

Regional development

Inclusion at Lloyds Banking Group

A more inclusive business is a stronger business. Our goal is to ensure inclusion is at the heart of everything we do, supporting our customers, colleagues and communities. 

Supporting the transition to net zero

We're supporting the UK transition to net zero by advancing initiatives that address climate change and protect nature.