Pestle Raport Lloyds Banking Group

Topics: Bank, Lloyds Banking Group, Lloyds TSB Pages: 15 (3626 words) Published: April 22, 2015


Table of Contents

1. Introduction……………………………………………………………….

1.1    Vision................…………………………………….. 2.Political………………………………………………………………….. 3.Economical…………………………………………………….……….. 4.Social…………………………………………………………..………... 5.Technological…………………………………………………………… 6.Legal………………………………………………..………….……….... 7.Environmental …………………………………………………………… 8.Three Challenges ………………………………………………………. 9.Conclusions…………………………………………………………….... 10.Bibliography……………………………………………………………… 11.Appendices……………………………………………………………….

1. Introduction

Lloyds Banking Group PLC is a financial institution that was formed after the acquisition of HBOS in 2009. Lloyds PLC are one of the largest banks in the UK by assets, containing over 100.000 employees in total. It operates in several countries and provides products and services such as retail commercial banking, wholesale banking and bancassurance. Their headquarters is stationed in London. After the acquisition of HBOS, Lloyds became the leading retail bank in the UK with core brands being Lloyds TSB, Halifax and Bank of Scotland (Market Line 2012). In this report I will start to analyse the external environment by conducting a PESTLE analysis for Lloyds banking Group PLC. The PESTLE analysis contains multiple external factors that can influence the company, this includes: Politics, Economics, Social, Legal and Environmental. All this factors have each their importance for the company and can have different impacts, depending on the situation. In the end of the report, I will write about three significant challenges that Lloyds are facing at the moment. At the end of the reports there will be a conclusion.

1.1 Vision


Lloyds Banking group's vision is to become UK’s top bank for costumers and shareholders.

To achieve their goals and the will make strategies that are simple and agile to the organisation and be responsive at the same time. They will also focus on products and services with good values and deliver stable and sustainable profits for the shareholders (Lloyds Banking Group, 2013)

2. Political and Economical:

In the recent years there has been a lot of focus on the recession 2008. A lot of the attention has been set upon the financial sector and the banks, mainly on how they handled the crisis and the system that didn’t prevent it from happen (Key Note, 2012). Several factors were discussed, one of them were about how banks contributed to the financial crisis with a “rapid expansion in global finance”. The crisis where a shock for many and brought up some severe weaknesses to the financial regulation and supervision in the UK (OECD, 2011), such as the Northern Rock scandal in 2008 (Hyun Song Shin, 2009) As a result of the recession, the government developed a “rescue pack” to stimulate the  economy and decided to spend 37bn pound to buy stakes in three banks, Royal bank of Scotland, Lloyds TSB and HBOS (BBC, 2008). But seeing the damage of the crisis and the current situation of the economy it became clear that the recession would be deeper than originally anticipated. In march 2009, the Financial Services Authority (FSA) stated several assumptions, which were not forecast but worst-case scenarios that brought to the conclusion that Lloyds bank would need additional capital from the government (FSA, 2009).  In March 2009 Lloyds PLC made a deal with the UK government that consisted of the redemption of Preference shares and the “asset protection scheme” (Lloyds Banking Group, 7. March 2009). But after “initial discussions about joining the scheme Lloyds paid £2.5bn without joining it” (BBC, 2012) In the following years the bank retail lending market grew in the UK by 2% in 2011. In 2016, it is estimated the UK lending market will have a value of $2,417.8 billion, an increase of 27.8% since 2011. It is said that after the...

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