Lloyds Banking Group announced a long-term strategic plan on Thursday, aiming to generate approximately £2 billion in cost savings by 2030 through artificial intelligence and advanced technology.
Chief Executive Officer Charlie Nunn outlined the strategy alongside the lender's first-half financial results for 2026.
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The plan focuses on evolving core operations such as retail banking, mortgages, and commercial banking, while expanding high-value fee-generating services.
The bank also intends to pursue focused international expansion within its corporate and institutional unit.
This marks a return to selected cross-border investment banking activities that were curtailed after the 2008 financial crisis.
Lloyds reported a statutory pretax profit of £4.3 billion for the first six months of 2026, up from £3.5 billion in the same period last year.
Despite the profit increase, shares dropped 0.5% in early Thursday trading as analysts described the long-term targets as conservative.
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When asked about potential workforce impacts from the efficiency drive, Nunn declined to provide specifics. "We don't put targets around numbers of staff," he said.
The bank is targeting a return on tangible equity of around 20% by 2030.
It also announced a £1 billion share buyback and a 30% increase in its interim dividend to 1.58 pence per share.
Lloyds' performance reflects broader strength in the British banking sector, supported by sustained interest rates and robust capital generation.
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Regarding potential tax changes under Prime Minister Andy Burnham, Nunn said, "Wait and see."
