Lloyds Banking Group Annual Report

The 2012 Lloyds Banking Group Annual Report makes good reading.

[http://2012.lloydsbankinggroup-annualreport.com/downloads/lbg-2012-annual-report.pdf]

Only 372 page, but some salient points can be found, if you dig deep

Page 2: Total wholesale funding reduced by £81.6 billion to £169.6 billion;[money it needs to bridge the gap from deposits to loans]

Page 6&8: Brands: LloydsTSB, Halifax, Bank of Scotland, Cheltenham & Gloucester, Birmingham Midshires, Intelligent Finance, Scottish Widows, Lex Autolease.

Page 14: Targeting further reduction in total costs to around £9.8 billion in 2013 [more automation /job cuts and perhaps asking strategic vendors to do more for less…]

Page 29: Lloyds Banking Group has retained our position in the FTSE4Good socially responsible investment index

Page 44: the core loan to deposit ratio of 101 per cent at the end of 2012 now very close to our long-term target of 100 per cent.[today for every £100 on deposit, £101 is on loan, thus the need for £169.6 billion for wholesale funding]

Page 50: Customer deposits £422.5 billion (£422,500,000,000)

Page 63: Funds under management increased by £7.1 billion to £189.1 billion primarily driven by improved investment markets. Inflows have increased in the year primarily in St James’s Place. However this was largely offset by a reduced level of inflows in Scottish Widows

Page 124: HM Treasury currently holds 39.2% of the Group’s ordinary share capital. (UK tax payer owns 39.2% of Lloyds Banking Group)

Page 158: During the year, the Group drew €13.5 billion (£11.2 billion) under the European Central Bank’s Long-Term Refinancing Operation facility for an initial term of three years, to part fund a pool of non-core euro denominated assets. (borrowing from the ECB)

Page 170: Trading portfolios: The Group’s trading activity is small relative to its peers and the Group does not have a programme of proprietary trading activities

Page 208: Balance Sheet: Total assets £924,552 million = £924 Billion = £0.954 Trillion
Page 208: Balance Sheet: Loans to Customer £517,225 million = £517 Billion = £0.517 Trillion

The UK 2012 GDP was £1,541,465 Million = £1,541 Billion = £1.541 Trillion

Thus Lloyds Banking Groups assets = 60% of the UK 2012 GDP. The bank is vast.

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