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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 strategy

We have three strategic priorities 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 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 2025

    • c.45% increase in active customers served per distribution FTE since 2021. 
    • c.30% gross reduction in run and change tech costs since 2021.
    • £24 billion cumulative gross RWA optimisation since 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 2025

    • Launched UK's first in-app financial assistant.
    • 50 live GenAI use cases in 2025, generating c.£50 million incremental value.
    • Completed UK-first public blockchain tokenised deposits transaction.

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 2025

  • UK's largest digital bank with c.21.5 million mobile app users, logging on c.6.5 billion times in 2025.
  • >£22 billion support to social housing since 2018.
  • >750,000 Scottish Widows app users, up >75% year on year.
  • Over £70 billion sustainable financing provided since 2022.

Our 2026 strategic commitments

Increased confidence in delivering our 2026 strategic commitments.

>1.5bn
additional revenues from strategic initiatives

<50%
cost:income ratio

>15%
RoTE

>200bps
capital generation

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

Our 2025 annual report will be published on 18 February 2026.
 

Annual report

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.

Supporting the housing market Colleague health and wellbeing

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.

Financial wellbeing

Supporting regional development, charities and communities

We're committed to supporting the UK's regions and communities through regeneration, addressing disparities and fostering investment and growth. 

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. 

Inclusion

Support the transition to net zero

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

Net zero transition

Related content

 

Bank on Lloyds: shaping the future of finance

Charlie Nunn, Group Chief Executive, reflects on Lloyds Banking Group’s delivery of the largest digital transformation in UK financial services, and shares his confidence in shaping the future of finance.

Read Charlie's article

Championing social housing

We’re working with partners across the UK to build more social housing and create stronger futures for families and communities.

Social housing

Sustainability

As the UK’s largest financial services provider, we have an important role to play in creating a more sustainable and inclusive future for people and businesses, by shaping finance as a force for good.

Sustainability

Group overview

We're a leading UK-based financial services group. We provide a wide range of banking and financial services, focused primarily on retail and commercial customers.

About us