Lloyds Banking Group has unveiled a four-year plan centred on cutting about £2bn of gross costs by 2030, while seeking steady income growth and higher returns over the period.
The programme, titled Accelerate 2030, is built on growing its business, innovating its offerings and simplifying operations.
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For the 2027-2030 period, the group is aiming for mid-single-digit compound annual income growth, a cost-to-income ratio below 45% by 2030, return on tangible equity of about 20% in 2030 and capital generation above 225 basis points.
In business and commercial banking, Lloyds intends to strengthen ties with clients through broader digital and AI-based services and to double the size of its relationship team for small and mid-sized companies.
It also plans to add to its corporate and institutional banking activities, with selected growth in the US and Europe.
The bank said it will place more of its services into third-party systems used by SME customers, make greater use of digital capabilities in selected asset and payments activities, and introduce an innovation banking offer for fast-growing companies.
As part of the efficiency push, Lloyds said it will roll out more AI-supported tools for relationship managers and selectively widen originate-to-distribute activity in an effort to increase balance sheet turnover.
Lloyds also set out other targets, including £40bn of lending for first-time buyers, more than £45bn of new funding for small business customers, more than £100bn of sustainable and transition finance, and support for one million people to start investing.
The Financial Times reported that the bank expects to spend £13bn on the plan, which includes a larger corporate banking operation.
In the first-half of 2026, Lloyds reported statutory profit after tax of £3.1bn , a rise of 23% from a year earlier.
Net income totalled £9.7bn, of which £7.3bn came from net interest income. The group said lending and deposit growth supported that performance, alongside a net interest margin of 3.19% for the half year. Other operating income was £3.3bn .
Earlier this month, Lloyds said the Halifax brand will be replaced by Lloyds in England, Wales and Northern Ireland, leaving Lloyds as its sole consumer banking brand in those markets.
Last month, the lender revealed plans to fill close to 300 roles linked to agentic AI, drawing candidates from both inside and outside the organisation.
The planned hires include data and AI scientists, engineers, responsible AI specialists and AI product managers.
It also expects to create more than 1,000 roles in 2026 as part of a broader expansion of its AI work.
