Lloyds to Expand Insurance/Wealth Business & Cut Costs

Lloyds's has set out fresh targets to expand its lender's insurance and wealth business and further cut costs, as the bank resumed a dividend despite a sharp fall in profits for 2020.

Lloyd’s has reported pretax profits of $1.7 billion, well down on last year’s pre-COVID-times results, but still exceeding analyst expectations. 

A strategy update showed Lloyds aimed to offset pressure on profits, including from wafer-thin central bank interest rates by further cutting costs and increasing income from wealth management and corporate banking. The bank’s CEO had said he would increase funds from insurance and wealth customers by 25 billion pounds by 2023 and expands its currency and rates services for corporate customers.

The company additionally mentioned it would cut office space by 20% within three years.

The lender’s shares were seen up 2% by 09.47 GMT, amid a 0.6% fall in the wider FTSE 350 bank index. 

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