Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a695336

Lloyds to plug deposit gap by focusing on advice

by Sarah Miloudi on Aug 01, 2013 at 09:27

Lloyds to plug deposit gap by focusing on advice

Lloyds is looking to pick up the slack from falling deposits by focusing on advice, it told investors.

After reporting a first half profit of £2.9 billion - paving the way for the Treasury's stake sale in 2014 - the bank said its wealth division was continuing to evolve with client relationship management technology and a digital push on the way.

It also said that in the current environment where deposits were scarce, it intended to focus on advice.

'We are focused on ways to leverage the strength of our core banking franchise which holds a number of significant customers who meet the criteria for our wealth proposition. As market deposit rate levels continue to fall we will focus on supporting our customers with advice,' the bank said.

While at a group level Lloyds' H1 profit will allow it to begin negotiations over re-instating its dividend, in its wealth and asset finance division losses came down significantly.

These fell by 86% to £101 million, though this decline was driven primarily by lower impairments.

The wealth and asset finance arm's underlying profit in its core business came in at £296 million, up 47%.  More broadly, however, the division made an underlying loss of £101 million, down from the same stretch last year when the bank said the division was £761 million in red.

Going forward, Lloyds said its digital push within the wealth space would involve the continued improvement of client services, combined with better accessibility through faster access to advice and support.

Lloyds said that some of these changes are already underway, with its new private banking client centre now open and a new point of sale system being piloted.

Following on from this, Lloyds said it would introduce new customer relationship management technology in the second half of the year, and is in the process of developing more bespoke ways to interact with clients, particularly through digital channels.

leave a comment

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

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the shares

  • Lloyds Banking Group PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet