Lloyds Bank to cut £2bn in costs as part of AI-powered strategy
📰 source: theguardian_business · 💼 business
lloyds banking group plans to cut another £2bn in costs as part of a four-year strategy launching in january. ceo charlie nunn said the plan involves investing £13bn by 2030, including in "pioneering technology" and ai to drive growth. the bank will roll out ai-powered advice for wealth and pensions, and use ai to personalise offers and support relationship managers. nunn acknowledged the need to improve, saying "we're not good enough today." cost cuts will target areas like technology, office space, and productivity, but no specific job losses were detailed. the strategy also includes international expansion in the us and europe for corporate banking, a shift from post-2008 retrenchment. lloyds aims to cut mortgage approval times to about three days using ai and blockchain. it will also double down on its car loan division with a new app for drivers. the bank reported better-than-expected q2 profits of £2.3bn, up 14% year-on-year, and announced a 1.58p dividend and a £1bn share buyback, the first half-year buyback ever. shares rose 1.7% on the news.
why it matters: lloyds' £2bn cost cuts and ai investment signal a major strategic shift, with potential for improved efficiency and shareholder returns in uk banking.
source: theguardian_business
sentiment: +0.30 · impact: 0.50