Lloyds Banking (LYG) 30 Oct 202020 Q3 Earnings call transcript

Thank you for standing by and welcome to the Lloyds Banking Group Q3 2020 Interim Management Statement Call. At this time, all participants are in listen-only mode. There will be a presentation by Antonio Horta Osorio, and William Chalmers, followed by a question-and-answer session. [Operator Instructions] I will now hand the conference over to Antonio Horta-Osorio. Please go ahead.

thank statement joining presentation. and quarter XXXX everyone management interim morning you our for third Good to quarter, I customers. our transformation and in return being encouraging give is business in will a for market-leading recovery QX, brief creating new recognized with the our as by how followed overview opportunities of profitability digital the Group, a our by sustainable continue All for and strive we inclusive to future. this, while more a we will I through and will then the the at William over time run to have end. hand to questions for financials, I the will recovery turn first to our quarter business in X. on slide challenging significant quarter seen by have environment, of with a Despite book billion £X.X operating share and and uncertainties remain, grow mortgage open while a we the in XX% the approvals. growth XXXX. quarter, of in This highest in represents since volume a approvals the

also the quarter, deposits and the retail growing current We to billion of Group at end see the third accounts higher markets the have ahead continued than through £XX are now of year.

significant performance in deliver business due on has have also of return increase to an change largely QX. equity We the in Group to enabled in X.X% impairments, is tangible with a in a volumes to This financial a seen but profitability. return to QX, and

The our engagement next to risk-weighted and satisfaction and on than of assets. £X.X investments, conditions better shall our for slide. enhance from William I is seen to can strategic our expected in benefits book, the through Given Group the we record The able on also and impairments benefiting strategic billion optimization over go our in execution. and digital the investment macroeconomic of quarter ongoing are as business, in focus commercial guidance long-run shortly. detail the our scores, both this line XXXX the of continue be

slide X recognized digital to our and for Group. position the is new creating how opportunities So leadership turning

apps. Up digital months. digital which last the million X.X million mobile nine largest active the million UK, bank XX.X the use are of users, our in We in with XX.X

a a clear on app total continued We pleased is this very log as are XX advantage, with month, that strategic and is far so more times that per of year. X.X seen those this customers customer a growth digitally in enabled and products throughout needs period, challenging a serve us customer this have digitally year. to we XX% log-ons billion has this increase This originating to

of this expense quality, net and X% digital score the Importantly, is promoter not at same period. is our over up the

building. say to banking enables We alongside to many single As Those to functionality. including of unique customers, our through quarter, is support times are order capability in share able bank over Group viewed account view you the investment insurance, X customer month, This long-term and relationships, protection a home the and in savings customers me our who million retail the million of X% use mobile insurance deep up over this and our customers came have heard XX% XX views have needs. unique products, pensions, every before, leverage those now apps.

of customers the through and in group pandemic. have investment competitive continue in the the confidence long-run transformation, serve our Our to the digital its I well position. future position great to in Group

and the now toward turn the relentless Group an and continuing investing will and slide is I developing outline more future. supporting to continue We sustainable customers further. the on future while advantages we maintain UK economy, strive how competitive will focus will our our for to our X inclusive and

for of funding XXXX, the mental which and committing charitable foundations help with country, health are is on We well-being, We them their as businesses our working and £XX.X focused our coronavirus pandemic, recover, other Group's up a to while the at closely and also which the enable and proactive we purpose. vital to the Britain will have particularly stakeholders, to million response and continue the support we heart government, regulators adopted independent of customers work. down had to

We vital still moved to have around of all been how deeply the importance have by we have much and do. diversity, which recent the events world, highlighted

our change Plan, of Action which ensuring We progression. have will Race across announced organization, the cultural drive and recruitment while diversity

quantified that the benefit credit This positive, the black Action thing have the Group, our We diversity Plan Race important as risk. addition improved Moody's also of note it our this given colleagues do diversity the increase recognized for existing but in and target is reduced social to senior right a and our has to and roles, to representation clearly in for to targets. is is

from directly the and to objectives, have the and I more same we hand our time, new on for now over so will financials This economy, met And the by supporting pay with to shareholders. we interests strategic of will aligned we we long-term the Finally, the XX% our At are emissions which carbon as of through concludes will the more diversity fully by Group's That internal recovery sustainability, reduce working and remarks. of are announced position already opening the to target in UK goal to sustainability is detail. franchise, William, run XXXX, the reduction developing XXXX. benefit. my carbon actions targets. do, an finance, have to right we the on things These over ambitious the

Thank to Group's everyone. you, morning a I'm of performance. going financial give run through and good the Antonio,

Q&A the usual, we open at then up end. for As will

TNAV macroeconomic been included impacted it the £X.XXX in or NII very gives and revenue earning on profitability business per £X.X The an it quarter, QX more up costs. of margin Group's environment. substantial points, CETX in small billion. lower ratio billion. of supported to billion cost-income £X reduction later overview operating the challenging in reduced I'll Group. XX.X% come this basis this quarter few billion resilient at ratio for £X.XXX charge in has driven the £XXX intense more detail quarter back in come the QX. assets undertaken to to The minutes. loss X% in still the increased meanwhile, share. tax increase a other before net to has to of in has is relatively a remain X performance QX, absorbing third X and average in from the Group's is of million Pre-provision XX% by environment the second slide profit in Net and reflects on. back our targets look total largely in clearly income now XXX I'll detail a statutory the Turning excluding interest performance I'll interest reserving to franchise in slide to derived relative environment X% a and income. transitionals, a the largely down capacity. in QX, profit down customer £XXX return in regulatory of financials; focus Group's is due quarter performed on in both year-to-date while the been £X.XX Costs how QX. expectations. at The is turn an the The quarter, BAU and costs by the of requirements. impairment from is has impairment stable model in to area X% and charge and comfortably of £X.X a £X ahead significant to benign million, of with capital

And to strong we've XX% a £X.X the on a expect book we half at be billion open into the performance stronger the in open mentioned, in is strong of XX% better the looking the the to with I be in mentioned approvals, Antonio half. the book X% QX. As has QX mortgage that, growth than expectations. quarter. second Finance seen expected Consumer pipeline to building up we third year, end share in of balances book quarter. Based at around the in performed down that

now QX, government be X% closer we In HX. we of driven to lending, balances now by in lending, with of market expect schemes. to to guaranteed down XX%. support continue delivered about the performance billion the a in ��X share see SME Commercial, We've Given

the loan as on £X expect the are seen would Commercial quarter, to down is crisis. as support Going are we relationships. to RCFs, the way, strong £X.X to and book. clients back fourth drawings the drawdown the our AIEA Average down on work balances also see returning February open Institutional other in up quarter, I we've level, billion on continued interest RCF and forward for billion continue early but the pay having continued their Corporate now looking from in mortgage growth significant the QX mentioned earning assets in are

very now performance. strong from in As XX% over commercial accounts. the has retail remaining you've continued of a indeed ahead Antonio, scheme This total deposit. lending in heard the of deposits around growth is benefiting support in from year, billion QX, £XX Meanwhile, market on are current up

billion basis £X.X XXX from is quarter. with and in net year-to-date X. half-year to NII QX slide now billion line interest points margin Turning basis £X.X or is a on up The income points couple of in guidance, QX. of the

better the to the finance benefit overdraft charging the mentioned consistent addition already half we've deposit quarter's to seen year. mortgage also of versus low a In consumer benefit strong well I've margin, cost at expectations, as back significant the growth, and outline of the starting repricing, full as gave deposit come balances performance. into that with I

environment flexibility. supportive shorter than current AIEAs slightly achieve asset we've New three rate five LIBOR, to attractive attractive of us fourth albeit the quarter, book This in year basis will impacting business while margin. support dilutive only mortgage to month swap The income, replacing over maturing is interest margins the the maturities structural dated been continue higher front preserving thereby to hedges. also X with low is allows strategy and are That hedge, Group growth business. Group and protection, points income around with

the that if billion context, average gradually roughly over curve that continue hedge. year-to-date, flat. X.X% of two-year £X.X You over to or average in life of see, reduce time, now consequence the LIBOR of weighted In the will hedge earnings remains likely the approach

we and in economy the points. better than expected resulting around points full margins in in together, Based yield is to basis up, at be fatter real expected curve, XXX a and basis to AIA the offset is mix, on currently lending QX, remain around XXX of margin supportive year this of interest stable income. expect broadly Taken

in expect low months, income. below relatively key for also and in industry. focus relatively subdued. transaction across banking market level environment the Turning QX. pricing to lot respect customer now income Commercial With line is levels subdued by an investment seen charge an the the includes but review the impacted £XX persistency levels in approximately benefit to of from markets. non-repeat continued Overall, slide the the QX, due of billion we across the our OOI subject of in benefited in markets of spend is of AMMR pressures our and £X activity. is X AMMR a be with has QX. similar £X.X of premium the We've to assumptions. Retail other a divisions, in and to reduced FDA's UK to remains in activity remain incomes the and other QX review of OOI nine the versus our card charge aspirations, of continues the activity charge fourth illiquidity by quarter, less of review, business, This QX Insurance insurance billion clearly impacted potentially of management and annual asset given respect the million while saw following new pickup

level, now recover XXXX. in activity start the base in we to would are to around which we expect However,

platforms, for and both wealth. example personal venture, within and in income, as the including payments joint are propositions our traded and investing in and products as We markets platforms, in resilience in commercial, wealth and our diversification well insurance other

Now costs. slide and on to moving XX,

restructuring be to given a year-on-year. costs as to has our charges expectation This BAU costs expected the headcount, million up XXXX intense annum. Total ever. in £XXX been end. has our This conduct important programs. deferring accruals. coming this across per by in expect these number Overall, a million is existing months average year-on-year, of focus of on months year, above reflects about number nine a million albeit £XXX by down as in heard X% programs have for increased achieved of £XX corona remains reduction £XXX all ongoing higher for based many Remediation in lower I and historic including despite of very to the likely to small cost an times this with You've X% than QX, come resulting it costs. million end before, higher activity, bonus

The of of the enabled Our current £X.X ongoing of success over to in investing in this a we as life particularly billion of has our savings Investment investment record on. £X.X you've so the spend XXXX long-term and adapting absolutely made evident of pandemic, has Group, the GSRX but to of the been the investment committed digital far the in been continued We've sustainable earlier capabilities. has Antonio from total pandemic the strategic billion situation, date. business. in during especially remain cost program benefit a invested investment to heard

of update frontloading to million run for we've While to priority overall, year. The expect below our The significant little slide credit investment better only taken quarter will any to the expected charge holds economic above on and is impairment impairment, million benign, not a the steady. charge expected operating and been has on customer of for in costs of and in government be the is £XXX continue schemes. the presence commercial, and our now The of consistent the XX. QX. This reserving in outlook for move billion a pre-pandemic benign will QX, £X.X charges Group, remain picture, than the we with retail to continued the impairment QX given the the environment £XXX quarter. macroeconomic in support seen this loss experienced recognizes I rate, this and

Importantly, taken a as charge arrears This a includes in £XXX of overlay generates is result experience the management benign our offset that of releases provision retail million. QX. model to

to arrears We by been larger hence been losses have that the this available, would support it of releases point. range customer provision taken measures judgment, kept at the low not appropriate and have and have recognize

also looking economic we've forward updated assumptions. our mentioned, As

are the that balances, triggers reprofiled, in benefits modest of associated better a essentially delaying reflecting adding £X.X that It's some significant of performance unchanged of higher This slowdown recognizes of Forecasts also in million. of up-to-date in seen maintaining staging view we we've HPI provision a XXXX. activity, quarter into about to by refined stage much billion to million, the in an slightly largely term, It and longer update two release in our leading results also of £XXX the in but but worth our for from it, a cards, in QX. increase moving £XX XXXX.

a a severe stable scenarios, £X.X at ECL of ECLs against impairments. broadly QX of at economic and all of continues stock to of XX.X% our this, case billion. of our and on significant Given potential protection unemployment ECL incorporating providing XXXX. remained The £X.X billion A XX%, base credit pick-up weighted reflect range peak in future including downside

obvious under Assuming economic expect at impairment the billion now economic no The further given HX, £X.X our caveat our IFRS-X changes we to scenarios be our the charge, change no lower billion to in scenarios, of that full of range. to year front-loading of end material is our to the provision important, uncertainties. means £X.X the

across XX; I we how Now touch our business maintained slide to moving will on reserving have lines.

some after medium by mortgages months an reduction sectors year. charter of ECL pre-crisis on Group's a now careful credit-loss of coronavirus Indeed, Group X.X% with are exposure XX% has Group. we four at The corporate mentioned, half the to maintained provisions from nine card in sectors X.X%, with provisions now these the our I lending. in commercial XX. XX% if months, expected Within sheet and on clients, balance an sheet management increase coverage we grade I'm levels. look stock policy cards with briefly charged provides increased have X% significant slide balance XX%. remain write-offs billion stage is off £X while resilience, most It's lending, line to the with recent of in been pro current the at that, that the certain line book XX% billion. means during in cards around exposure of peers, only to large line in £X.X of the total proactive in to has while on the impacted to Overall, will coverage Around quarter. is XX including subject commercial closer be around to exposure X. with X.X% total X.X% investment our months, impacted is first our this, in We in lending commercial As the the There forma arrears. on coverage secured. This additional XX% years. exposure around of three or of sectors going been SME X.X% the is context stage overall portfolio the to of modest Within in risk and of our

was This which the the been mentioned, reducing back billion crisis, risk. As fallen and pre-crisis at RCFs now £X beginning down are sheet that billion, to balance by have repaid £X means commercial around has QX. our further drawn drawings full the in of RCF levels,

payment billion XX%, have customers year. now move Finally, at lending, payment vast billion average billion on the – portfolio The below real retail with XX% first half while of have from repaying, total, its of initial our outstanding, half XX. payment the today than matured with on In now maintaining slide to now payments. of million estate holidays XX% XX% including year, two-thirds granted holidays been on by £X.X holidays majority commercial; is £X.X around reduced with payment commercial £XX of I'll holidays LTV. of around less since LTV around up over £XX

XX% below XX% payment market with of mortgage share payment. mortgage delays holidays extended share. market expired, our have Our Around national around payment now is of now also resuming

two. are to mature stage ECL at the This credit stage across lending, at that to is secured start X% less already and retail. with on low, while of low population half and the holidays. around seeing the at million. across noting, the outstanding of remain of includes under XX% were holidays; at SME £XXX than are and remaining incremental products in lower are arrears similar already moving over Early payment missed mortgage year, holiday. extensions of two, just levels, and payment the higher half XX% all arrears of maturities balances holidays Indeed, payments arrears assets of picture generate Finance it Briefly payment we of in motor capital notably repayment cohort extensions around worth we of As an a also their mentioned is quality, of

items quarter, the is we remeasurement by the Volatility insurance look unutilized as in resumed QX, conversion in Now provision happy of continue, Restructuring on in underlying volatility, moving again other and line banking halted XX. circa QX. the and year-to-date, losses benefit expect and £XXX value in include credit remain restructuring £XXX down Year-to-date items QX, severance P&L, will tax taxable fair the the quarter million. positive another the Group in significantly the below thereafter. but prior line property work at and on up charges plans slide provisions relatively to the offset the and high previously zero rationalization PPI quarter in of normal million of with and we and QX. broadly XX% with reflects are partially model the with rate, charge. DTA This

The equity £XXX of Antonio ended the we this, quarter. tangible a million all is as year-to-date the QX. third on return and after £XXX profit tax the As million of for in said, of X.X% in result statutory

XX. to on on slide capital moving Now

XXXX, protection is X requirements, and of credit from XX%. capital see expecting IFRS to capital our XX XX.X% looking continues impairments. points addition a as staging had Our basis target, of to benefit previously now But this likely in more internal against of above temporary of But story. We essence expect acts also regulatory this X. be both XXX around in-year with a the potential transitionals. move still of stage substantial CETX comfortably a increase up to our CETX unlikely. ratio HX. in We unwind, we is We've lower in is largely unwind on reasons migration. this partly credit and from now to half to XXXX to the It had XX next RWAs Partly is to is still points of migration benefit be expected In expect because for RWAs. in QX our total, is the this place, on broadly quarter. while this at macro this further not managed better, expect forecast Therefore, QX. to RWA in up helped seen clearly in year-end basis take expect benefit strong, now year we albeit we've now the CETX transitional which reduction because point Again, have we event. a see RWAs by be the basis stable we quarter, and been basis

Looking amortization software approval, to forward expectation, XX from regulatory treatment change buffer to over change the above years. potential and requirements, around a the will capital intangibles basis for regulatory in previous higher a in we QX. a than in comfortably see is internal of circa CETX our point This This we of subject benefit and potential our are means we XX.X%, three X%. both hold capital of On that around target requirements. our target ongoing management with given

any outlook, As in return all capital at regulatory economic Board and the consider they levels particular, when the year-end, look as capital including available well information, usual, as will requirements. at and

to on has balance environment, growth rate environment. return of turning strong us the slide with has Finally, of to enabled the offset sheet contributed challenging economic Together a sides a this to stable Group's pre-provision enhanced It the both the strength, impact we uncertainty. position The gives capital also and solid ongoing to in a are QX. attribute. strong despite means customers, support profitability, our prudent reserving loss XX; in profitability to that absorbing significant

based updated assumptions, and economic XXXX mentioned risk-weighted our on assets. areas in the for impairment As relevant guidance and we've

future of a front see summary the slide have in in confidence the Group. can conclusion, great of the we In on you. of You our guidance

happy for for our and and concludes will new in interest the this UK Group we and learned questions. is deal the of take organization, to of you we're focus and our This sustainable do, thing long-term is to And returns. superior on future this the remain to emerge our We listening. economy. right We ways and presentation maintain will supporting the customers brings, having from deliver Thank the customers Whatever the your a best working. great morning. shareholders. That well-positioned about crisis, our

Thank you. [Operator Instructions].

comes Morgan. the go of ahead. line Rahul Please first from Your question Sinha, J.P.

the on You're call. live

is to Good Good with morning on NII; the to you second that pleasing morning delivered, sort operate see much for recovery if struggling am market, the what sort are at to you run in that A plus the same give bottomed on share, the £X.X of going this of you what the non-NII, consensus XXXX, might of am been a are pricing of I assets. billion we really essentially I the pricing hear actually and in driven my what higher on that now. think your you. And I few be what might could drivers improved help consensus peter share given just and take couple you can it demand understand, Antonio. would you've we've the accept just you by boost intention the sort which the has that trying at structurally of off quarters. run do have numbers obviously about questions then I'm in £X out recovery seeing the with Could side, us, greater calls are gap rate us understand, sort year? Thank trends trying of you a from mortgage the rate, I expenses. of from sort pent-up share start that to quarter, billion one So mortgage sufficiently, pickup for called, whether to average now I just you with, interest [indiscernible] some helpful. around William. looking next I'm topics from the related of out how non-NII discussing of the bridges now, versus improved, ask, here, still you market to comfortable and that of billion earning £X since probably have the just right Can last have growth

on markets, the numbers you question Maybe OOI. an build give start to mentioned your Rahul. also, William NII, you morning mortgage environment and I'll specific to of on up overview the explain Good on can of the

the versus have and this in of on strong to the supplying question. a remember prudent as needs very that the country, we the in your or adopted many and discussed in We times terms start and improve. strong thought board, the we the we from therefore you would relation mortgage mortgage basically as helping – on has been very, this as our risk our in margins volumes, So customers years, of and last open have to you book, given discussed before, said, the have see lender mortgage will on like to have across absolute the been therefore, case, were it Britain markets. improved that QX, And prices continued held mortgage capital to we them, market, of focus where mortgages, previously heard being they largest not stable. in year, our strategy privileged prosper recovery we we you this and we and and and Prices few has had the been quite and

and buyers three movers, home think on based both I on this So basically is that first-time this outcome an on and is factors.

some demand to you there pent-up The first, satisfy. as mentioned, was

board more outside go you general. across homes time them, they became have with and Secondly, people secondly, less it hospitality, have people is more, spent also there cities, in the that gardens the incentives is more more spend home homes duty much a well, traveling again, as their behaviors, customer been expiring said larger buy a thirdly, one on fact moving to of and valuable have strong most into saved have saving possible. on as hand, they at have, they But they you And change significant are year. next and therefore know, as we somewhat if on to in stamp home, wanting strongly as to people and

people. it's the behaviors this the that in from structural buyers So movers, my and significant both home that in a mortgages, is, and opinion, in change first-time are driving demand

And these important. So you effects. three of have this all is quite

has been XX% the since highest at approval of Our market have which XXXX. we had share is target,

completions So meeting even give time strong share lag we stronger customer we within the those we know, has at months, book time already very around you conditions, been is trend. that already know have three know higher this XX%, got. that and our absolutely will even we a market on between idea been is, mortgage and buyers, And to as customer demand, these to first have we needs, an the in four with a QX, growth even applications an applications and changing in open that therefore given of there you

We are as said. lender largest country mortgage I the the in

We are capital have comment need, supporting low customers you William we is curve. NII, and absolutely strong important this other on income has a the our yield and the position, mortgages than the they offset, of said, supply impact it the to that more therefore William, the question? very as and sustain very and can

Thanks Rahul.

First we other in all see. what on QX income

we take As see £XXXX from an that million, we of charge. that had out you means roughly completed around million, AMMR in can which turn that the if are today, March charge £XX you million, release £XXX which AMMR

little and down And new from as of, activity where as UK clearly in bulk modestly saw its back schemes, not claims such OOI relatively relatively charge, in We the of August, a like subdued won't in of back absence coronavirus next our well on such to of quarter workplace, your in GI to matter continues focus also business on comment very terms performance, some insurance banking on in performance. of off flat and commercial about I important saw to not today. for activity, the for consensus year, our but Retail things new by of see, think a there. for on year, What But taking toll activity. off what's that answering what's a modest performance terms affected weather as obviously protection we the limited I two it's AMMR performing as travel. particular give events areas, the next retail. was some which impact in that's business we question, to the we markets, in charge do degree, limited and be saw and is context

look streams extent some return in travel to in activity we retail, see for more to things OOI, activity like things a example, you like is like for UK bit very and would forward bit sensitive, and expect markets when the more Things insurance you Then we the OOI to that respond a So that it activity for value have. of example. that. to

streams I secular on business. mentioned of the within in in comments my number OOI a think I in build we're stream, the making added earlier non-interest as investments, the to order to basis, that on a

insurance, transaction of examples GI stream. packaged those in platform propositions bank banking income within protection might be retail, So might account platform investments in will and the this management. the over and platform, that the be cash Likewise, build commercial time

Rahul this is, final It's and your investment. said activity is will of as change think also sensitive, comment, I before, to it it is I not going the overnight, be ongoing gradual. but subject

Great. very Thank you much.

you. Thank

ahead. go Rakkar, Aman of line the Please from comes Barclays. question Next

call. the in live You're

Morning gents. Could couple ask I please. a

I but the upgraded interested on capital that, and mortgages; to the front in kind presumably observed of us you're headwinds good if much in performance, QX, work one QX? this level wanted book, really come seeing experience trying know how – now, year? a first understand your been you are kind it a out dynamic billion you to October? called able does quantify it's margin similar is, of might that as drawdowns And any tailwind in that, before, out, into the has you help? see just back on £XX billion. would to timing. just Another I'm is have if a to give may, robust I it's that which to the you've £X open and Is on so of in we OE? nice on you next a As is be back part tailwind in regulatory it application guys and So guidance of indication could good, dynamic volume completions help matter to of RWAs that about what

was expected estimate coming? is that, that RWA inflation how year, versus your might number best of the a regulatory through is I just that interested captured much noted I a pro that to year? next on of combination I'm to you. sense but year, next guess of in I think Thank come in be get you as lower. might also headwinds coming and what's trying this be RWA cyclicality, the that RWA

book I very second can the William on front you on will and Aman. terms in of much, question one capital. Thank Right. and elaborate your on and first QX back applications, the take and

how a you our always, different customers. and haven't to significant channel, strategies depending October our strategy, in on to We constantly according behavior multi-brand what especially haven't – we of in the change of from any I'm seen on from saying seen we And intermediary any know, in significant adapting. But quite view, prices in So, behavior terms complement are to as October. just point adapt demand agile demand. we we

that advantage to duty duty, gets previous into that. have incentives rush that they take applications disappear. I And you that, think to advantage the of as stamp course, And have people end less that incentive the in deadline from might you take the year want my relating of closer, the of an by to as deadline. people order points year, submit next the advantage, will for will after stamp additional to take then more of or their know, to

disappear, So, you but that on. expect should bit to later a

on in given investing time other people houses, think customer structural demand and point. structurally hand, the is have I more houses impact, I better you houses, the wanting the told spend more they to behavior On a the about and structural more their it

additional these give on the color So, would points. you I feedback be and could this

Thanks, Antonio. Aman, for Thanks, the question.

completions there first mortgage said around and the in maturities. like basis having question, XXX what But points looking is points all, On XXX at taking points we're QX. basis above versus at more are also place margin on XXX of applications basis that,

the So as and that margin sense trends the you front. on mortgage the to a gives

again, giving that which not comments RWAs guidance, for that my The we're matter next earlier next year's credit RWAs. factors mind are point called as When about I we in three out on. in two bearing year, worth at perhaps look really or context. forward, for going a migration a is asked in RWA's You picture on this But call.

we've seen haven't QX. in that QX. seen We to on it don't see basis so We expect really of far what in the

more next-year of upon a macroeconomics. So, event, of it's your perhaps view contingent

RWAs regulatory offset You credit modest, it's there. next asked in at that, course in XXXX there. business, moment just continue particular, XXXX And but our to in the more for today. see that year. that counterparty we But call the XXXX. early done this in about give we'll That's it expect our of risk, in rather of ongoing will lead headwinds Commercial has that guidance with The we'd which to again, optimization, only headwind picture significant its against Then during regulatory out the part then as will year. is on combination we than

a it you clarify come of a lot. does only Perfect. actually year? isn't a £X Thanks billion £XX it this and I is billion in you it more decent that then, Or digested sound next was Can thought little to chunk to just there's the that before? like that so happening bit year, it way

year, issues particular are guidance of matter but the suspect, I a that the of referred I it's think beginning at probably it's for next and timing, to. question more a – being again,

you. Thank Okay.

of go comes Exane. line the ahead. Stebbings, question Next from Please Guy

the live in Your call.

quickly NII, just references and exit Good thinking made margin. year come sort rate on Thanks taking multiple about today and you've for morning. year. actually, it's I please, next and to on the just I the into stability mean, back NIM in of the this the questions. Can

then the about the hedge on we've the and mortgages, level volumes think and is – into interesting look of and sort widening we're we meaningful year? book. rate pipeline front which at stability on year, will think we spread that £X Consensus based positive £XXX the maybe still and is I of already and year £XXX are Or into in book, the next next a quarter. somewhat, above just unsecured good else we looking prevailing enough Looks we into drag the next interest-earning on much for something assets, actually from that I on? ended over got but back is probably dynamic then exit on dissipate Or year? there secured maybe than we're going to is into rates. year, that year million like, if next a into average next a somewhere million got provide clearly, it this then mean, billion bit mortgage as pressure of quarter average be year. next is the terms obviously, above net you've XXX And more lending. front which back to to And

actually you. is anything So, running somewhere that should just to above thinking can persuade that trying see work us Thank I'm out, there you into that from we're XXXX?

Thanks all in very with first I'll start picture. what we've for with Maybe of questions. QX. seen dealing much, Guy, the the off margin

of margin couple ended The good around at margin. virtue similar QX to coming a quarter things deposit out the overdraft and comments very forward and see see in on drawdown little dilutive group as And interest for negatives. that the was was context while negatives, reduce little repricing, maturities mortgages, of to The deposit boost again, in couple just of into of Chargeable QX. saw they funding but XX% our surprising. which full subject comments That my indeed made again, QX Against interest-free we're margin in structural saw the mortgages, costs guidance weren't repricing, a earlier a half like negatives. gives in off of consistent we on, of commenting lot very why little the billion were calling the attrition XXXX. as more a gave little from are earlier, saw, to That's interest-free I for by £XX XXX. of quarter saw that you They're that margin. I factors, albeit of the similar. QX bit net mix, were remainder overdrafts. Again, the is end that's a to we picture picture you in the the down. example, we about dilutive Within full couple going are with And bit at income, The structural on. The balances, margin. earlier the a As that, volumes, hedge The to slowing one, of to of hedge Antonio for great has a margin unsecured was year. in is TFSME. a an stability a that's of bit positives a into a the number And positives second be we'll them. bit, out and a removal one say being which, called NII, we looking – to with as unsecured and to up positives is asset came we'll that, the balances

a XXXX, I think in is for play the going guidance factors to are totally not looking that, be beyond QX, you see but really at matter again, which dissimilar. can

interest context income. and The the driver important the seen which of is second question, that the AIEAs of on in point here QX your comes in to strength to going net what's mortgages. in We've

to from on. what continue off is XXXX, head but the extent that's in can To a a the course of With I less unsecured the going Back pipeline, QX, upon continue perspective. that seen to – AIEA at in earlier unsecured coming from matter perspective. are year-end. just you XXXX out. down, we've attrition, nets a commented or those obviously, bit and as today this an we going guidance, grow. Bounce us Loans year. go balances NIM, where a we RCFs and increase what the to into end into from again continue of to mortgage for to see to seen you and margin that the stable view going see if NII an which When more of up good to see combination on we're And the seeing the continue see the that We're the leads have growth news, Commercial, little that we patterns of like, continues AIEAs that We the Overall, offset, based that we're today they will

feels interest perhaps emphasis very Very, on clear. sense obvious the past, NIM. simply it Okay. fair headline we're way in get that an I whereas we're a point, that but there that Thank just Is was margin, more like environment these placed more the rather focused a than should more the days? thinking it given what you. be Perhaps you're bit NII it's really in, on net the about

Yes.

that is. are it in are the context that sure things of is pricing. in think think the But best say context in making I both it of relatively we I shareholders important to that customers we and it's attractive do interest the margin and of mortgage

Okay. Thank you.

you. Thank

Chris line Autonomous. Cant, Next from of the question Please go comes ahead.

You're the live in call.

Thank for taking you morning. questions. Good my

Just on the hedge. structural

remarks, billion; your and at at six for in I equivalent disclosures stage, in the months, talked I net contribution. in net you £X.X the it was. mentioned months say billion, £XXX XQ was You you the think nine look disclosure If million hedge the being about for the XQ months, contribution your £X.X the nine

would there £X on we're number maturities the a give any it average could year So, life per on also looking net quarter, at a annum say Thank I'm XQ the be clarification. would that the next if hedge, for two-year would helpful. £XXX And you if annualizing that of the be specifically billion. £XXX from are you. But NII be contribution million misunderstanding a about level? to third £X basically that hedge at headwind we about specifically, about rounding And if us the is helpful we – there billion, million

for all, we just it's The important, to benchmark. refer first the that structural sure the right Thanks to question, hedge, of sure. make Yes, Chris.

the subtract which and you from around which to year-to-date that is is hedge £X.X structural number is lower there structural a £X.X billion. so is There LIBOR, above So, like, billion hedge around absolute you number. if – and because LIBOR some is contribution far obviously income, beyond have

against to, reference, like, you So, way by benchmark of it's context. important just just right the if

we the billion as my we kind downside, that appropriately look in the short-dated What the ourselves the I but I our comments have you protects XXXX. hedging, negative of mentioned context has like, the just of value, with mentioned optionality, strategy a the of been rates, In rates low earnings at of not for we on, terms to against very is of if earlier of the context maturities virtue £XX example, back preserve always which preserve have interest short-dated making should, hedge. curve to the sure short-dated. see And time downside in – we to that we led trying stability protecting us further that base by as and doing, normal do forward, we in resumes the is have emerge, by, hedging same should that to case, we're again, hedging, are preserving if against but been

it's but question, first. my second part to your is of the answer this – forward Looking

Looking hedging, forward, see we we're short-dated maturities slightly because now in more XXXX, looking billion and a at of maturities £XX number that around for in of XXXX structural hedge.

in you roll the like it, of but just over referring life, the the hedge of of at as over a average As look that a we that terms to to average hedge, five that life you're life the on is more weighted years. an basis importantly six headwinds, two-year forward have

– it type it's parameter that And structural so, should flat you off, see hedge, about a we about. rolls that as thinking then think curve, the be of when rate the you five-to-six-year if that's

mortgages that morning moves. rate low Number that effects of that pricing would and you're the relatively interest We've of low is quite in that deploy of couple environment, to. we kind make that those hope that this more one been rate in we're abate I that just as two that an extensively One the a structural, ensure In stability profile are, some the we which always we terms about are which seeing to number headwinds lumpy, and we referring against further The of I'd really. would a point environment. we that order are the achieve when some I suspect things will, that talking value, hedge about is of preserving of shareholder strategic the careful interest offsetting earnings the basis, of headwind caution be, some would interest annualized hedge on is in objectives, is one.

also some the a So, our the market, you and product we it's you context. environment have I when which in markets. think the that's think to rational, to but structural about response, rate low that think have, P&L, about the other benefits driving driving relatively dynamics We're in hedge, is well-ordered important think, in industry I

Understand if to to And though, gross. speaking give about hedge I back completely from billion just in missed But I come annualized gross on well, and you could other the the the the of £X parts. generated thinking the moving hedge. NII, numbers contribution the perhaps I the numbers that, perhaps about XQ, point, did as it's the NII you I'm were if understand

you right. give £X.X I mean I is number think gross billion. that's the

For the six months, was billion. £X.X it

lose year. that if hedge average contribution environment, The this about £XXX your £XXX much balance. a the if So, £XXX about in billion just very essentially it, in is you XQ I how by which checks the curve of versus would But is is life gross is next component the net out of think quite sounds The which million. £X million. flat into LIBOR hedge NII hitting contribution with, chunk the entire hedge the over annualized of rolls million,

different are said. for what that that beyond year They're I've slightly Chris, already much. I Obviously, next think the numbers to you've given I terribly the different, but won't see. not on comment performance numbers not the year-to-date, we

Okay. All you. Thank right.

Thank you.

the Goldman comes Next ahead. go question from Sachs. Leitgeb, line Martin Please of

You're live in the call.

the Yes, negative of you ask on potential Good see rates. negative rates morning. you how I impact just wanted to and

on ready the Bank the negative of think had whether comment a system. that I they're for rate bank England to of

liability So, ready question broader the is market anything the of of that come rate? address could on ready? And the but left pricing increasingly you. related a mortgage be Lloyd's banks at in to near-to-medium maybe look Meaning in as to rates? on there impact Thank you think side? potentially first could Or pricing, find to to pricing, where to question, operationally levers anything an now? then asset to offset scenario is left the Is potentially what order banks lower try mortgage the terms there are at in have repricing term? And do lower of the the least

two much, in in factors. bear you to Thank mind I negative Martin. think very Look, rates, relation we should

them and governor is have their So, the England side. bank tool the operational obviously and kits. And has be wants kits, said that that Haldane to feasible. side just to there in of financial rates is tool for to the their an the Bank What Andy and last in negative operationally week be

in are it we to make So, of how the are Bank their about part England that to make with that does the long tool feasible, discussions steps kits. take what how and of

that's one point. So,

QE their second bank Haldane said anything then The and decided interest just likely negative do Both to additional if rates. resort they about the bank about, the is financially, else, changed one view – said, would before is haven't that rates. to most bank, Andy Andy their mind about the on something about last the bank week mind. governor they their the changed thinking Haldane has

phase, we governor to take England. Bank bank that would are tool we with where operationally for kits the repeating be And the are what I'm on Andy of Haldane just said. discussing what said it to and the the so, enable available And what

want pricing will of William sure. to terms and comment, In I'm

you I not And more should we XX and see sustainably, few would would mortgage volumes I considerations. the almost as stable where the I environment a and pricing a risk difficult as be of prudent terms years said now would that in comment thought as other now, question, months mortgage I frankly in last to and more that mean, capital, thought make. advance considering we change. rational environment throughout have why very are for previous know, it it's in Just one margins we market, you been was

And significant LTVs. have forward, is we high there risk out significant especially going as there uncertainties is a still demand, we different discussed. for there, While premium

if don't would So, you I environment. to change the to know I current want in see difficult that economic William, add.

it given margin was whole, repricing, context, of sure the In that are. where I'm through interesting but some liability two as Well, Antonio Martin, modest mentioned just support won't around second indeed well. surprise what us, in of relatively just said is which there, a margin that as to address the inherent now, for to it The comments. for you, was is is rates sector right the your – interest and QX in not liability liabilities, questions as my actually I

more Looking asset forward, about it's repricing.

if like. looking you that's forward, So, a point

worth I balance the think that That, low means in forward of the one liabilities asset suspect is curve. a turn, where side from going is of I making point that sheet. of the being rates that in is function we most opportunities the pricing are

you Thank much. very

you. Thank

comes the Next of question go from Andrew Coombs, Citi. ahead. Please line

the in live call. Your

could the Perhaps on looking if mortgage numbers on dynamics, the margin I and applications. the stay maturities on for you. at same theme, thank completions Thank and you versus

supply been pass-through Just demand, mortgage interesting really market. rates that the and you in been on in past function it's quite this on year, the whereas In lower a to theme. really seen discussions that the Bank have of the in with we've the rates have England, dynamics the of of mortgage the

indicated You've to or that similar. environment is likely think scenario the you the just remain

the that discussions potentially cuts is through with you a to year the through about here consumer. that passed and So, end rates, prospect seen hasn't the talking hasn't in to further big mortgage passed of the when we've moving to the question have this picture Bank are rate England, they of negative market what

In mortgage higher. are the rates fact, going it's other way,

any on first England deposit. At on been on gross one. negative transmission customer aggregate the then question more boring discussions mechanism? So, a that rates? the Bank is And a stage, you've margin that disincentivize did and of There's consumer number gave introducing of second the you had them half with from

it think XXX bps consumer number, XX on and updated just customer I So, on Could the you give please? was deposits. us

I and Okay. the we on will will comment have just point, discussing, to what Andrew. the first, been I William Andrew, to second. would I mean, comment on add

it. the about us to it operationally would said are themselves, implementing to with us, for you, they banks, to conversations of Bank of in not ready terms but to them, do they should what of general, the have I about rates conversations take decide been England, as In negative be all implement

as this are in said. So, on The I to the the phase, we kit. have operational wants Bank of tool available England

available, to are feasible, on be discuss additional be implementable. to to it additional first has monetary it easing. that measures, if it quantitative has to they For And to be phase we that probably would minded they resort were policy

very are of in they and be implement to tool conversations, it clear the the about or the bank available, that, about implementation change not mind not. to terms our So, whether of about driving want of

have most that lowered exactly amount we rate an Andrew, very passing Well, by I which of understand, first, consumers. substantial mean, the banks to consumers. been immediate rates connects the points, they that and has which consumers. passed from to basis passed. point, second that went the points On rates XX base FCR basis XX to is to as their And the about passed I to have impact, was

will at to years. have into over and decrease in rate average, which absolute distinguish given on the a price the of There bit is different the was which apart the in on on impact the you continue will market. of what year both prices, and prices are duty, the which duty, the from many have business customer consideration and until very lower to fluctuated It in behavior, of the lower that also but have we has decrease you the has of But the the segment. but in of taking the is stamp driving of terms And at beginning base player year, base to as for consumers of is for the etc. think mean, little you, going from increased New structural margins, year, since up – rates, told than terms that, demand substantially. a approvals, the which next advantage because the largest the very substantial is I never continue. demand, beginning we there I incentives continue shift so had are I XXXX, beginning segments, of dynamics look has the the stamp

are in there important. opinion. – don't opinion, prices, rational changing mortgage factors high next rational our and that one more general, that's – both that So or quarters. the more The given demand I the mentioned uncertain our you, see don't in position, I results opinion risk to quite LTVs, and in factors two the I in really in see the And

then I'll second your two Andrew, one Antonio to just add maybe on go comment of address and there, the to questions.

our point view impact, the a view that financial England a rates from it as realizes of general concerns you if think I is negative more or regulator the profit sector like, Bank the around or matter. of the realizes appropriately

says, I rates, mortgage have in reductions think, that therefore, we've seen rate the Antonio we so passed far. – as rate on mortgage –

desire of of suspect Going forward, sympathetic ensure profitability I order be in introduced. negative But which you from realm slight like, the that get form rates a I and see, to We'll sectoral of suspect negative In terms avoid get the the negative concerns impact will in an rates England that, there if they that. speculation. introduction to addressed. of bank that's Bank significant might is are obviously understanding in necessarily if

because on give for lines XQ I your we of general the consumer. as The go matter, – been, those amount as there's detailed the the matter, business margin, more the that. of been on to pressure get save very We'll on that half. point beyond a we Finance give giving at a as HX. into just trend won't don't disclosures a along margin There's same detail won't Second but gross point, want modest into Consumer I

Thanks. Okay.

consumer quick follow-up on that then Just margin. a

the – probably Given you on book. terms going a of will effect weighed the consumer obviously in mix have forward? that and that market, now that gross mix credit Do margin in dynamics the effect is shift stabilize it's card largely on it seeing you're think

the to our activity that dependent what general, think levels, unsecured is mentioned in book. half year, very at does the and I as margin, Well, I upon

So, during XXXX, of expectation, would to be the if feeding one which sees activity a then see into expect you resumption would course through that margin. in our the

you. Okay. Thank

you. Thank

Jonathan of go Pierce, Next question Please the Numis. ahead. comes line from

call. in live the You're

Hello, folks. Two please. questions,

£XX XXXX? question. That's that so, say if maturities that year? The first you Did is relatively on set a just billion next is clarification smooth first number. of the through maturity And hedge

we The probably I profit, get second telling you're on suggests is question mean us everything small QX. capital. a again in

now got flat. the XX%. through it's feels XXXX? be Risk-weighted load particularly let severe I of only course important And software XX%. X you ratio any Tier markets difficult the to on, the into regulator equity probably but wouldn't It well downside the been know the good reason as fully toward of would You I back up at are even if you ends turn scenario, year on, can why to given sort you've comment your see lending benefits. distributions like assets

Yes. Thanks, Jonathan.

how On the about again go the of detailed timing that as won't down. three won't maturity, roughly billion during year, the is right the number I that the next £XX breaks into give the detail I XXXX, but billion of your questions, of exactly first to a for breakdown but £XX of hedge course number,

second capital performance two course prepared We and the The you your expect that that with of see in one see the but is for trends capital how of mentioned year or question the obviously continued is within would remarks. P&L performance. our build, capital of might macro-dependent. to my around remainder The dependency. the I of macro

software the exemption. mentioned You

on decides for organization, that the investors. where The that and third of I dividends to distributions I entirely do. the think the does we of the need your What recognizes questions. to goes what see all think, importance PRA it mean question, to

obviously and would expect see but position, regulator consider obviously obviously and the of upon uncertainties of to ultimately of sure and uncertainties, regulatory We know it I'm that us The also as we commented. with both like would macroeconomic strong the I strength is the position, the things also be the that Board – is as number that evolution we're where ourselves, have end That for agreed without sector a position to very the the be macro and outlook would and of see a the ones with, considerations, a distribution be capital question the do. types what we the transitionals. appropriate you've stand the given year and And capital clearly about. we've would in, we at the based would a

are it but would a the to debate. of So those question end of that's the considerations Board the again, for at I expect year, types the

Thank you. Okay.

Thank you.

from KBW. Next line of the Sleiffer, question go ahead. comes Frederique Please

call. in live the You're

Yes.

my think changed. I name been has

So, if yes, Tier under all to I'm about the at Manchester question economic had where a the are is a, seems we're impairment Frederique, in moment, we're newspaper, helps. environment it's etc. world reading – going lockdown, because here. several go And lockdown, of, into The Nottingham But delivering sort slightly Ed that you, I that Firth just low happy numbers. no, it reading the I'm back very in France not X, just banks, if my in

we areas And is, of how those rest, obvious performed – insofar, further? So, of Or of think in provisioning? of into versus I question has to see most those form them greater related some expect I my the my of that sort us that's you've and made sort the lockdown you those the goes reflected places the lock one, in back to do would to some in between give which marked happen what going I in if book can see adding is whole rather can, would first is And like of your to areas? then differential would call areas impairments be a than might guess already question. question form my lockdown, QX, QX that be the form we that guess, in some as some have the if I you into seen lockdown? that of utilize suppose UK UK of Manchester, back some the indication first second of you in

Okay.

still any I whether, is for – first it too book it lockdown speaking on the significant see, because mean, have had very William Manchester So, we will about I Look, I early take second frankly, your weeks. to the one. impact take the question the example, then is different and to will are would example, mean

difficult are about really probably that. to know is would it say So, I things. What two

The first right there. the the I of ones one to mean economy the is absolutely are government measures support

have productive a discussed dissipate, have structure can obviously we and whenever as it reset. quarters, used structure not in because immediately be effects that the pandemic keeps to productive previous be ready, First, that

as pandemic, course, sectors post operate has pandemic that the rightly we a impact very right sectors, pandemic. to structural supporting Of more move will differently and impact to government again, But with speaking, do. the so overall then driven the into the thing has shock help looked targeted and from to significant expected at has the which of sectors external the the continue is

just plan. less it etc., second that's and of the important important I If through support, etc., kept you unemployment you people have transition decreased. money into in only you see not not was enabled to to this would spent way, But have individuals that the lower And also from with production. the want, would you pandemic has think, has I that operating, to after discussed unsecured flexibility if through scheme, as the to That's not businesses you and the period, which spend and by having debt is going taxation corporations that but been this well, as benefits, businesses that first point. adapt one, the quickly furlough what mentioning,

they that as more individuals those the decreased which to makes as by will, the unexpected fact sheets they some having But in and And have is balances. financially. more are and which jobs they individuals terms their those resilient secured secondly, in reflected the unfortunately, going jobs balance an – forward, stronger have banks forward. expected a lose having important they – shock. they they save ahead an plan number going And to uncertainties, that leverage So, their for they might of lower to and lose of less, have spend are situation one, is time their had, in also really not

comment a specifically, those and based important really us and shock and you're you you what is are retail would a should in one is I because five retail So, you – past a previously moment, mentioning – that ask for commercial is like on have have start, bear to I'll one two not digital think a to to UK. in is what I bank, economy we us as of or into the is we bear shock William six loans should mind. the the in you low-risk, real simple, itself. the been and do cohorts know, relevant third books. points relating the to in really it a have add, being months commercial impairments, that think doing you that mind A bank that I And we build always putting the since institution for said What the in this have doing financial the years wanted been we important

that So, a view we sustainably. we discussed build through And years we with now, wanted you to have, several have have we low-risk bank. as taken

Southeast our the completely factual the deemphasize to at than the For an mortgage when our activity example, we to slides of years give mortgages, decreasing on to to again, look to that ago you by was order in you loan in focus you book, you just to example, incomes appendix, And on in five it gave in mortgages our the five of part before. different lower give we the London had is and four from that market. a already example, decided situation

XXX% billion of an XX see around years mortgages prices above XXX% example. you So, have have billion if you we look if £XX XX spite less £XX of in when mortgages is XXXX, we when certain that have look And over give above only of our we areas had an and LTV, equity of XX%. bank billion. years, LTV in you that, £X £XXX down gone And of billion at than ago, the billion had the country, LTV, £XX after you to

specific that's that's have the been low-risk second to most would bear what and our William, So, bank focused after prime really years. I in a our mind that many think like in building many years book is over important case we it's go to so you of now to question? on now, businesses

The better probably to see address in your question, the we provision start it I'll second and what's today. as point what's understand Ed. not is X in IFRS just

to forecasts currently lockdowns, our an QX. include support but the articulated end of So, government was measure localized end also some as of it at

it Now, anticipated. seeing if you how look that today, lockdowns at a better the see bit it's be what weeks. previously could get government worse. bit support the that than we transpires But is the coming we're over We'll a that also case have

a bit net there's and of there positives some a on. and going effect negatives So,

we It's to important upon impairment you. macroeconomic change, just will X does the constructed is do forecast that a that provision If have we if provision? provisions future, forward As back you X our macroeconomic IFRS into that in macroeconomic X our change more we then in adverse and a we forecasts up impairment given look asked dig situation, we cause based step end IFRS impairment have? the provision. so perhaps say already Or our into the those IFRS

the said having whatever be a based that, but forecasts upon to impairments measures blows. soften by are those government Now macroeconomic offset coronavirus net scenario, potential forecast may driven by to is it important that future taken recognize

within net have back two macroeconomic forward, QX, any net there pretty our to said, rest if are experience. a So, impact, to of seen changes of benign we'll going those And the forecasts like, I upon those what is. two. see arrears Coming if as you QX, we've

maintained have the within pretty We stance. at work to model to indeed, offset now £X.X by our more billion. maintain we've driven to that, hard And or that had ECL, less prudent releases

position very macroeconomic comfortable you our today. right So as now, upon with, given feel based to we assumptions

Right.

Okay. much so Thanks indeed.

Please time the RBC. line from Toms, to ahead. final Benjamin constraints, Due question. go of you. Thank It comes have one we

the in call. live You're

Hi. please. Two, Thanks taking my for questions.

you. the crisis? is secondly, your early it way buffer? its to footprint Firstly, paper the to too you published which the thinks say? have then do the the paper change consultation management Thank that the a recalibrate week, cost Or relation would And includes current that be form, management property rules if in MDAs, last change to the implemented to proposed PRA expect does about was still X% in to in potential following its

Thanks the much question. Sure. very for

ambition regulatory other our ahead comfortably first of very today, we've or of with the MDA any stay on think I those demonstrated two, is capital, to constraints. as

As regulatory XX%. BAU we today requirement is stand The today, got we've ratio of a XX.X%. around capital

a obviously there. there's So, very substantial buffer

manage I business comfortably the hurdles in may there think be. we whatever regulatory would to always of excess look

that of of look portfolio, property we've look be the On adjust that estate. that new in property the Again, in that learnings we and out is course some a taking in it ways we've of continue of forward, think property done we of the clearly XXXX. forward, planning network the of sense I the look context portfolio as we're at little in appropriate the as done charge, things working, do, will on our context that bit makes extent of the the is of And what we'll we the to one to restructuring we'll overall current property the the accordingly. environment, And in environment. coronavirus

you. Thank

concludes That you. Thank XXXX. Quarter your Lloyds results

You the rest Thank enjoy may joining please and disconnect. all the for of now day. you