Lloyds Banking Group’s (LYG) Q3 2016 Earnings Call

Antonio Horta-Osorio – Group Chief Executive

Brexit Impact on consumer markets

“In terms of our business trend see the referendum, there has been no significant impact in any of our consumer markets. In the corporate sector, we have seen some impact as businesses have deferred elements of their investment and borrowing both pre-and post-referendum, given the uncertainty. However, the aggregate volume effect has been relatively limited.”

The UK economy is well positioned

“Looking at the UK economy, the outlook remains uncertain, following the outcome of the EU referendum. However, the strength of the recovery in recent year’s means that UK is well positioned faced into the situation.”

Healthier Loan to Value Ratios due to increased house prices

“House prices have increased, which combined with low mortgage growth has led to much healthier LTVs. Our customers on average now have mortgage debt which is less than half the value of their homes. Looking longer term, the UK has clear structural strength that have allowed economy to flourish in the past, and which are likely to remain in place.”

Continued increase in Inflows of deposits in Q3

“…we said at Q2, we have kept an abnormal influx of deposits following the referendum vote. And that’s what you remember made our loan to deposit ratio go down from 109 to 107 in June, we said we would go back to 109 and possibly be hired given the lower level of rate. Well during Q3 we have continued additionally inflow of deposits and that’s why our loan to deposit ratio is even lower at 106.”