Looking ahead, we will continue to adopt a channel specific strategy in mortgages. Successful execution is reinforcing our competitive advantage and creating new ones. Okay. On the other hand as Vim also says and given where the swaps are, the margins have improved for the market as a whole. So, I think it's important to characterize it in that way before we begin. So, that's the basis for our guidance. And as Antonio said at the start, the Board will continue to consider potential excess capital repatriation at each year-end. We should enjoy some competitive advantage there. But again I want to underline it's a business that we strongly believe in and we'll continue to invest in and we see that as a going forward point. We have also become the highest corporate payer of UK taxes in each of the last four years. There are other bits and pieces, if you like, in that overall restructuring picture, but those are three significant ones that are important to point out. New to arrears in credit cards remained modest at around 0.7% and charge-off rates correspondingly are low and stable. I'll do -- finish the overdraft point and then I'll just talk about switches. Lloyds Banking Group pension schemes have agreed a longevity swap deal which covers £10bn of pensioner liabilities. So, the messaging around capital seems quite positive. But subject to those caveats, it is if you like one of the benefits of being a combined group. We have two ways of looking at it. It doesn't have to come through the switching service for us to book new current accounts too. Solvency II, yes, we're happy with where we are in Solvency II. The result was that under his retirement scheme his benefits would not increase. As I mentioned earlier, statutory profit after tax of GBP3 billion was down 33% and, as you know, impacted by PPI. Much of the overdraft issue has been to a degree contemplated and anticipated by some of the product changes that Vim can talk about that we have introduced in years prior to today. Claire, would you mind, can I -- can we take that one separately with the IR team simply because it's perhaps a question that will be better answered by them. So, there's then the central item which as I mentioned earlier on, I think is going to see lesser gilts income, hopefully a little bit of improved performance of the back of LDC. The first point I should clarify if it wasn't clear enough, our guidance is based upon 75 basis points in-year five-year swap rate on average through 2020. In the intermediary market, which accounts for 75% of new business, the extent of our participation will likely be dictated by market pricing trends as you saw in 2019 where our growth increased in the second half as the market improved. On 16th December 2019, the group, together with six other financial institutions in the United Kingdom, has been subject to stress test for the fiscal year 2019 by the Bank of England (BoE). The net AQR for 2019 was 29 basis points. I was just wondering how you think this will impact deposit pricing here and whether you think there will be any spillover in terms of asset pricing given obviously a reduced amount of funding being available? And finally before I conclude with 2020 guidance, we'll take a brief look at capital. Okay. If I could just follow up briefly in terms of bridging from your guided statutory RoTE target to an EPS number, I appreciate you don't want to give a figure, but if I ask it slightly differently. Analysts had predicted a profit of £905m on income of £14.2bn. Remediation was down 26% albeit a bit above our expectation for 2019 as a whole. One is where the reversionary book goes so that your question in terms of attrition, that's been stable in the second half of the year so -- and that's obviously on a smaller base as that keeps coming down. Registered office: 25 Gresham Street, London EC2V 7HN. That's an important engine of the business and it's an important engine in 2020 of the business. Despite this, we are not complacent and remain focused on ensuring that our key strategic and financial priorities are delivered in 2020, while also thinking ahead to the next phase of our strategy. You've been very transparent on your thoughts on counter-cyclical, the 2A offset and I think the remaining question that hasn't been asked is around the impact from the Bank of England stress test and the implications for your PRA buffer. Pacific Life Re head of longevity, Andy McAleese, commented: From our first discussions with them, the Trustee had a clear plan, and this gave us the confidence to work closely with them to offer significant capacity in supporting their objective. I think it's about half the pension population is covered by that GBP10 billion swap that we did. Our legacy mortgages originated in 2006 to 2008 continue to reduce every year. For example, there are meaningful further opportunities in private and public cloud for a more flexible and indeed lower cost base. I mean, this is completely the repetition of the policy because as I said, we don't have anything at the moment that we are looking at. Savings maturities, there's a little bit of that going on in 2020. SME lending, which is one of our targeted growth areas and represents more than 30% of the commercial portfolio, is largely secured. The GI point, there is -- there are a number of factors going on within GI both as to premiums and growth of the business, the opportunities that we see around the business. So, potentially this time next year you could end the year with a 13.8% CET1 ratio, pretty decent visibility about Pillar 2A coming down such that 13.5% is the right number for you. I think I'll allow William to answer that. For now given the announced increase in the counter-cyclical buffer very likely only partially mitigated by the proposed Pillar 2A offset both at the end of 2020, we are holding a level slightly above this finishing 2019 at 13.8%. We are not considering anything significant at the time as we speak, but we will continue with the policy that we have followed in the past. We enjoyed some growth in key segments offset by continued run-off of a closed mortgage book and lower balances in mid markets and global corporates as I described earlier. And finally, we are delivering more tailored propositions to our customers. Our January performance is better than what we expected. And the second was just a clarification on the balance sheet, you talked about flat interest earning assets. But you were seeing a decline on business confidence that sooner or later if continued would not only damage the investment, but employment and would affect the rest of the economy. And HSBC yesterday said that they are going to close their principal finance business because of the peak to trough losses and the stress test and I was wondering if you've got any thoughts about whether or not this is also one of the areas which is causing your volatility in the stress test performance. So, perhaps just to give some response to that. So some of the pressure, if you like, from that overdraft change has been pre-empted by some of the moves in the product line that as I say precede 2020. Indeed over 70% of our customers interacted with us through more than one channel in 2019. We have taken a deliberately prudent stance in relation to capital. I'm just trying to square your guidance on average interest earning assets because you're going from GBP437 billion at the end of Q4 -- the Q4 average to GBP435 billion as an average for FY '20. This more than offset the impact of IFRS 16 and the Tesco book acquisition together. RMB/Morgan Stanley (Pty) Limited (terminated Q3 2019… Good morning. Our unique single customer view is now available to more than 5 million banking and insurance customers covering multiple products including pensions, home insurance, and protection and we remain on course to extend this to around 9 million customers by the end of 2020. Yes. That differential is favorable and is positive today versus negative as it was 12 months ago. We've now reviewed over 60% of the 5 million PIRs completed. This enabled our market leading cost to income ratio to reduce further to 48.5% even while we continue to invest strongly in the business. This margin pressure in 2019 as a whole was mainly driven by continued competitive pressure on the asset side and to a degree this is likely to continue over the coming quarters as we discussed at the Q3 results. And if you have a view, if you like, the regulatory change is hopefully going to be slightly less prevalent looking forward than it has been in the past that in turn we should see our restructuring charge benefit off of that as we go forward. New to arrears are low at around 4% and the book has a low average LTV of 44.9%. The survey findings relating to the other subject areas in the survey are available separately. So if you put that together with some headwinds on regulatory changes for other income line with some of your peers giving guidance around the overdraft fee changes for instance and high cost of credit, I'm just trying to gauge whether GBP5.7 billion is a sort of sensible run rate or the H2 GBP5.1 billion to GBP5.2 billion is more like where we're going to end up for the full-year. I had two questions. We’re motley! I don't expect that to slow down any time soon. Going forward, we see opportunities from the expansion of MBNA into personal loans. We come to the end of the year and the Board decides with information available then, our guidance is 13.5%. So, I think that's probably just worth iterating and also I think from an ROI perspective, it's not in there so -- because we made the change already a couple of years ago. We have a particular attention to our market share in terms of current accounts where we showed you our current account market share in terms of balance is around 22%, but in terms of loan books, we are below that. I wouldn't rule it out for 2020, but I wouldn't expect it to be of the order of magnitude that we saw in 2019. As you know, the Group has a focused cross culture and a strong track record of delivery. Thank you, Claire. This scenario reflects an increase in unemployment and interest rates and a fall in GDP and property prices. The testimony to that in a sense is the fact that much of the retail -- sorry, much of the commercial optimization exercise is actually going on at the better end of the credit spectrum. Engagement levels with single customer view significantly surpass those of stand-alone insurers, as well as initial open banking user activity. Hi. Can I just confirm that you're happy with this level, you're happy with the leverage after repayment of loan last year, and consequently GBP500 million of divis? And that's the cumulative effect of, if you like, the ongoing or introduced part of the structural hedge coming in at slightly lower levels than we anticipated our 75 basis points plus the absence of a base rate rise. The State Pension age (SPA) is changing: The SPA for women will gradually increase to 65 by November 2018 and again to 66 between December 2018 and October 2020. Statutory profit before tax, however, of GBP4.4 billion was down 26% compared to the previous year. Now, as we see it, it is a well performing book that is well seasoned and we feel very comfortable with it. You had a question on restructuring charge as well, Fahad, which perhaps I'll answer. I think you mentioned GBP435 billion. Guy, please. Vim, would you like just to add something? I was just wondering... And the second question just on the TFS. We are also seeing a strong start for our joint venture Schroders Personal Wealth. And as you saw, the commercial bank has been as a consequence a big contributor to the cash flow -- to the free capital that we release every year and that should continue. Turning to the first slide with a summary of the financials. First of all, you wouldn't expect me to and I'm not going to comment on Pillar 2B. We do ultimately expect that to be insufficient and there will in turn by a further step-up, but I very much doubt it will be 2020. So, that's an example of what you now see. These reductions were partially offset by initial costs relating to the establishment of Schroders Personal Wealth. If I could ask on your RoTE guidance, please. It will be a matter of target segments, the right customers, attractive economics for shareholders because I think the past transactions show. The continued shift to digital channels and in particular mobile during the course of GSR3 is creating new customer expectations with a focus on simplicity and real-time insight with these expectations also influenced by their experiences outside financial services. Lloyds Bank is working on allowing savers to top up their pension pot instantly via its mobile app, while also offering guidance and advice solutions through the same service. The Group's organic capital build in the year was supplemented by 34 basis points from the cancellation of the remaining buyback in the third quarter. So, I mean we are growing with segmenting our personal business and we have key segments where we want to grow and we came to the conclusion, just to build on what William says, that for example the Halifax switch off that we are giving to customers was quite indiscriminated and it did not attract the right customers that we wanted to attract. As you've already heard, in 2019 the Group delivered solid financial returns and a resilient underlying performance in what was a challenging external environment. One is that a base rate change of that type allows a degree of friction if you like within the overall product base, which means that you can recoup some of the issue there. The judgment found that pension benefits must be equalised to deal with inequalities between men and women introduced by Guaranteed Minimum Pensions earned for service between 17 May 1990 and 5 April 1997. Within insurance, we see the advancement in annuities both bulk and individual. Low interest rate environments are not especially helpful from an insurance capital point of view. I have just one very quick question. Other income came in at GBP5.7 billion, down 5% year-on-year. It was impacted by two material single name cases as highlighted already at Q2 and then again at Q3. you, It's Joe Dickerson from Jefferies. Thank you, Vim. Contributions thereafter will be a function of that discussion that we have with the trustee, which will be subject to the normal inputs, if you like, into that conversation. You got the second point. In consumer lending, we have successfully integrated MBNA delivering a return on investment of 18% above the original target. Total costs were GBP8.3 billion and down 5%, driven by reductions in both operating costs and in remediation. 2019 saw the run-off of a couple of programs, ring-fencing and MBNA among them. Although Q4 was a bit above our expectation, we expect remediation costs to reduce to around GBP200 million to GBP300 million per year from 2020. We've observed what we think is very likely the partial mitigation through Pillar 2A. And we have today announced a new target of less than GBP7.7 billion of operating costs in 2020. The UK economy remains resilient despite the challenges in 2019 from the slowing global economy and elevated uncertainty from both domestic politics and the future relationship with EU. Looking forward in 2020, we expect RWAs to be broadly in line with 2019 despite regulatory headwinds. The TNAV number of 50.8p for the full year, you're around the level you say you need in terms of CET1, you're going to be doing quarterly dividends during the course of 2020 which will avoid any meaningful build I guess in TNAV during the course of the year because you're distributing on a more regular basis. I was just wondering if you could tell us please what the gearing is on that. So what happens with the election, as I said in my remarks, where you have a clear government with a clear majority, you now have in our opinion a much clearer sense of direction. We are a truly customer-focused business and continually strive to make things simpler and more transparent for our customers. Going forward in 2020, we expect the NIM to be between 275 basis points to 280 basis points. We are getting out of some exposure simply because the relationships are not yielding what we would like to see, but we are going into others. The second thing is the SVR book fell by GBP12 billion in the year. On the other side of the balance sheet, lower deposit costs and higher retail current account balances provided partial offsets during 2019. Turning to the next slide, we'll take a look at credit. Thank you. The current low interest rate environment is challenging for all retail and commercial banks. In terms of our base rate, it is our expectation to be back ended so it does not really impact the NIM of the year. Together all this translated into a resilient underlying profit of GBP7.5 billion. Could I ask on competition in mortgages. And now moving to TNAV. Credit quality remained strong with a net AQR of 29 basis points, again within our guidance. On the outlook improving the recovery trends, I mean you probably got the best insight of all the banks given your current account share into what's going on on the ground. The awards are decided by the only votes that really matter – yours. The higher effective tax rate of 32% reflects the non-deductible PPI provisions. Commenting, Lloyd Banking chair of the trustee, Harry Baines, said: “We are delighted to have successfully completed these longevity insurance and reinsurance arrangements with Scottish Widows Limited and Pacific Life Re Limited. And of course there remains uncertainty about how the Coronavirus outbreak will impact the world economy. BlackRock Investment Management (UK) Limited (terminated Q4 2019) Legal & General Assurance (Pensions Management) Limited (LGIM) 1. That's been an area of substantial investment for the Group over the last couple of years. And in line with that what we are seeing is the following. A lot of the UK banks -- a lot of the banks have come out with restructuring charges that have been higher than expected. Underlying profit for the year amounted to GBP7.5 billion with a market-leading underlying return on tangible equity of 14.8%. What do you get back on your Pillar 2A? I'll start with an overview of our business. So we are not -- we are anticipating this trend to continue, but on the back of a stronger market given we see -- what we see on the economy, what we see on house prices, what we see on volumes of transactions, and of mortgages requests. Now looking forward in 2020, we plan to continue investing to build the resilience of the other income line. “This will protect the Schemes from the financial risk of an unexpected increase in life expectancy and make the schemes more secure to the benefit of all members. Finder Banking Customer Satisfaction Awards 2019 How did your bank do in our latest survey of customers? This has resulted in a market share increase of around 6 percentage points to 19% at the end of 2019. Insurance and wealth on the other hand is continuing to perform well albeit it's also impacted by rates. It just puts us toward the lower end. I mean, our strategy is exactly the same. And so in a sense, the question has to depend upon a point of view as to regulatory change. If I could just stay on capital and the capital stack. That's question one. In terms of our guidance, we see about GBP200 million less structural hedge income in 2020 versus 2019. Turning to the hedge. Thanks. Lloyds Banking Group revealed its 2019 profit sank 26 per cent today as it said it must pay £2.45bn to settle payment protection insurance (PPI) claims. So for every GBP100 million that goes in, what happens to the Pillar 2A? And then when you look at the switching out data and what we can see -- what we see in the switching out data, the quality of where the growth is coming in, the switching out data is pretty low and that's why you're not seeing that impact our business in the way you might think it does. Well, this GBP26 billion of RWA is it makes GBP800 million of obviously profits, LDCs within that. And I guess relative to those three potential headwinds, where do you see the offsets? GMP equalisation after 2018’s Lloyds Bank court case ruling. The pivot toward serving more complex customer needs has delivered a number of tangible successes to-date such as increasing market shares in relationship mortgages and business banking current accounts, as well as a 19% increase in mortgages protected through the branch network. One is for sure the market dependency and if you see a market that comes back to life, you'll see a lot more activity in the commercial banking market. We have hedged and eliminated most of them. Turning now to two pillars of our multi-channel strategy. We can then open up for Q&A. And our success here is reflected in an improvement in customer satisfaction scores by almost 50% since 2011, as you've heard from Antonio and a reduction in customer complaints by more than 75% during the same period. Thank you first of all for the questions, Rohith. Well, maybe just to address the insurance point first. If we get that market rate aligned with the absence of a base rate rise in the back end of 2020, the impact of that is a couple of basis points. Thanks. Yes. The -- I think, I mentioned some points in my speech, which ended with you should not annualize the Q4 other income line. And on the business side where the problem was, you have seen a significant pickup in confidence. Second question I guess is just to confirm that within your ongoing 170 basis points to 200 basis points guidance, you've included the current existing plan that you've agreed with the trustees so you're not assuming any renegotiation. Thank you. Consumer confidence levels that several service have published have also improved. Looking forward, the Group continues to target an ongoing CET1 capital ratio of around 12.5% plus a management buffer of around 1%. And then finally longevity swap, in a way I'm glad that you brought that up because the longevity swap is quite a good example of the Pillar 2A analysis debate if you like. This will include severance costs, the state rationalization, and regulatory driven costs; for example the IBOR transition. You only actually hit the targets. Complaints against Lloyds Bank Plc filed in the United Kingdom H2 2019 Number of active online bank users of the Lloyds Bank in the UK 2014-2019 The most important statistics We offer a free, no obligation, 20-minute call with one of our specialists. We remain focused on delivering our purpose of helping Britain prosper while building additional strategic advantages for the benefit of our customers and generating strong and sustainable returns for our shareholders. And second question will be could you just elaborate now with the benefit of hindsight on the stress test and with times past, why was there such a leg up in your losses for the consumer book under stress in the Bank of England stress test? But as William also says and I mentioned as well, we are continuing to -- on the large corporate space, we are continuing to optimize the portfolio in the sense of some products and relationships where we have sub cost of equity returns. Okay. Couple of quick questions. Our approach of progressing our strategic transformation at pace and continuing to deliver strong and sustainable returns to shareholders while being watchful and responsive to external risks remains the right one and this confidence is reflected in our 2020 guidance. Look, I mean you are absolutely right, I mean we are the largest retail and commercial bank in the UK and we -- and throughout the country. Are you seeing anything like this or expect anything like this to help drive that business? Thanks, Claire. We do however invest when we can protect value following our disciplined hedging approach. Elsewhere, we have continued to take share in targeted segments such as PCAs, car finance, and consumer loans. This makes clear that we see ESG as a core element of building a sustainable business not just an ancillary activity. Finally, on the positive side, we clearly expect a significant fiscal stimulus on infrastructure projects from the government in the budget, which should change as William said the relative stances of monetary versus fiscal policies. Moving down the P&L. Alongside this, we drove a 6% reduction in BAU cost. It's Claire Kane from Credit Suisse. The insurance dividend typically contributes around 13-ish basis points of capital to the Group. Since the start of GSR3, our open book assets under administration have increased by around GBP37 billion, supported by GBP18 billion transferred from the Zurich acquisition. Should we expect kind of permanently higher restructuring charges on the back of that as well if we are to assume that costs keep coming down? The gross margin on our total mortgage book stood at 1.7% in the second half of 2019, down 10 basis points, compared to the same period last year. So, there's not really -- there's not too much of an issue that you're describing. Cumulative Growth of a $10,000 Investment in Stock Advisor, Lloyds Bank Group PLC. So as a result, what you see in auto enrollment is an ongoing business, which is again one that we very strongly believe in and we'll continue to invest in, but you will see it slightly dip or slightly lower if you like in 2020, that piece of the business versus 2019 simply by virtue of that accounting. And then on the insurance dividend, you said you feel good about the outlook there. It's Aman Rakkar from Barclays. The hedge balance therefore stood at GBP179 billion at the end of 2019, which is up around GBP7 billion since the end of September. That doesn't change the total distribution. In terms of the specifics of your rate hardening, to a degree I'm not sure whether that's a particularly general insurance related question. If we do get it, it's likely to be back end, second half of 2020 not front end as it was in the course of 2019. The conversion rate remains low. It is something we will continue to concentrate on and it will remain a source of competitive advantage for the Group. So, you should expect us to act accordingly. The business model, as you know, remains strongly capital generative. My view, as I see the economy at this moment in the UK, is that this all taken together is positive. Am I missing anything in the maths there? For example in insurance and wealth, we're investing in financial planning and retirement, protection, and home insurance product capabilities. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. So, those are the dynamics. And second question, you accelerated the bulks in H2, there is some seasonality in that. Your 1% management buffer that you incorporate, what are the inputs into that 1%? And the Group built 86 basis points of free capital. I may need to come back to you just to clarify on the other two. That's been factored into our guidance of 275 basis points to 280 basis points. Thanks. So, I think we can all do the maths that you have excess capital in 2020. Credit quality remains strong. Martin, why don't you start? On the other income point, I think I would come back to the discussion that we had earlier on around what's going on in the other income line. Is that incremental risk of you basically coming in below 275 basis points next year? It's a question that relates to how is technology going to change? The first of those two parts, the RoTE calculation, you're right, the amortization point is in the RoTE and that is responsible -- I see it more generally as about 100 basis points, but you're absolutely right it's there.

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