New Model Adviser - For Professional Investors

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Lloyds targets £50bn financial planning and retirement assets

Lloyds targets £50bn financial planning and retirement assets

Lloyds Banking Group has announced it will plough £3 billion into a development strategy in which growth of financial planning and retirement propositions will be key priorities.

In its full year results for 2017 Lloyds recorded a statutory pre-tax profit of £5.3 billion, 24% higher.

In its statements Lloyds announced the next stages of its transformation plan. These included 'continued development of an integrated group proposition for retirement savings and investment'.

Last year Lloyds announced the acquisition of Zurich's UK workplace pensions and savings business providing, chief executive Antonio Horta Osorio said 'a strong platform on which to develop the next stage of our strategy in the financial planning and retirement business'.

Lloyds said it planned to grow 'in targeted segments' addressing customers' banking and insurance needs 'as an integrated financial services provider'. This will include 'increasing financial planning and retirement open book assets by more than £50 billion by 2020 with more than 1 million new pension customers'. It said it would also implement an 'integrated' financial planning and retirement proposition 'with single customer view'.

Lloyds today announced it will invest £3 billion into four strategic priorities: 'customer experience, digitising the group, maximising group capabilities and transforming ways of working'. This includes an 'integrated group propositon' for retirement savings and investment.

Total Life and pension sales of £9.9 billion were up 12%, driven by a 29% growth across workplace, planning, retirement and protection. This figure was partially offset, it said, by a slight decrease in bulk annuity business. In 2017 it wrote £600 million of bulk annuity business, and said it continues to see 'significant demand' from UK defined benefit schemes for bulk annuity deals to help manage risk.

Workplace, planning and retirement assets under administration rose 15% to £43 billion, on the back of positive inflows and market movements.

Wealth customer assets increased 7% to £25 billion, reflecting market movements, it said. However, the insurance and wealth division overall saw underlying profit fall, by 3% to £939 million, due to lower wealth income.

The board recommended a final ordinary dividend of 2.05 pence per share, taking the total ordinary dividend for 2017 to 3.05 pence per share, up 20% cent on 2016. Lloyds also announced a share buyback of up to £1 billion, equivalent to up to 1.4 pence per share.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Comment & analysis