Lloyds Banking Group plc (NYSE:LYG) Q2 2023 Earnings Call Transcript

William Chalmers: Yeah. Thanks, Joe. A couple of points to make there. First, I’m afraid it’s a bit predictable, which is to say that, today we’re not going to comment further on 2024 expectations beyond what we’ve already said. So we won’t give precise guidance on 2024. I don’t think that will surprise you. Second, our RoTE guidance that is excellent for 2024, as we announced at the beginning of this year is actually just to be clear circa 13% rather than greater than to a small point, but perhaps just worth mentioning. Third, just to give you a bit of a sense of direction as we move forward into 2023 and therefore kind of set the stage, I suppose, to 2024. We’ve talked about the expectations for RoTE during the course of this year.

That is a function of some of the banking earnings trends that we’ve mentioned. The margin, the AIA contributions, together with things like operating lease depreciation normalizing. Those in turn are likely to continue as we go into 2024 in terms of patterns. Again, we’ll leave the guidance for the end of the year as we normally do. And then secondarily, we talked a lot about TNAV on this call and TNAV’s going to build in the second half of 2023 is our expectation. That gives you a stronger starting point for 2024. So Joe, I apologize, it’s not very detailed, but hopefully, it gives you a bit of a sense as to the trends that we expect to see continuing into the next year. Before we wrap up, I mentioned that I just wanted to add, sorry, Joe, did you have any further questions on that or does that address your query?

Joseph Dickerson: I’ll let you go with your comment and I’ll follow up later. Thanks.

William Chalmers: Thank you. It’s just a very small point, actually, which is that Robin Down asked a question as to whether or not OOI was expected to grow off the back of H1 of this year or for the back of H2 of last year. I just wanted to clarify, looking back at the numbers, Robin, to address your question. The answer is both. So I think I answered your questions to H2 of last year. In fact, looking at my numbers, the answer is both. I think that wraps it up, Operator. So thank you to everybody for attending the call and taking the time.

Charlie Nunn: Yeah. Thanks for the time.

Operator: Thank you. This concludes today’s call. There will be a replay of the call and webcast available on the Lloyds Banking Group website. Thank you for participating. You may now disconnect your lines.