8 Best Large Cap Penny Stocks to Invest In

6. Lloyds Banking Group (NYSE:LYG)

Number of Hedge Fund Holders: 10

Share Price as of February 14: $3.20

Market Cap as of February 14: $48.55 billion

Lloyds Banking Group (NYSE:LYG) offers banking and financial services in the UK and internationally. Through its multiple segments, it provides services ranging from personal banking and mortgages to corporate lending, insurance, and investment management. It also offers digital banking services and operates under several brands, including Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows.

It’s pursuing a digital transformation currently, which includes an AI Centre of Excellence. This is to improve customer experience and reduce costs. On January 30, the company appointed Magdalena Lis, who has a PhD in Computational Linguistics (AI) from the University of Copenhagen, as head of responsible development and use of AI. Lis, with over 15 years of AI experience, will focus on enhancing products with AI while establishing safeguards for its safe deployment.

While the financials don’t isolate the impact of just these transformations, they do reflect the overall progress. For the first nine months of 2024, the bank posted a £3.8 billion profit after tax and £12.7 billion in net income. Q3 2024 specifically saw income growth, including a 2% increase in net interest income, reaching £3.2 billion. The bank is investing heavily in new initiatives, including AI, with a target of £0.7 billion in additional strategic income for 2024.  These efforts are part of a larger plan to enhance customer experience, boost efficiency, and deliver stronger returns.