WEBVTT

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So let me ask you about this, this guidance

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and the, the, the the contrast that we

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see in the guidance message versus what you're sort of

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reporting backward looking on the on the guidance, you've

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increased guidance around return on tangible equity around net interest

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margins. But on the second quarter, it seems

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that you've you've missed estimates because of higher impairment charges

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. What kind of message are you looking to to

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pass on to the market this morning morning, Anna

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? It's great to be here. So, I

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mean, first of all, we had robust financial

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performance in the first quarter. It's obviously a challenging

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external environment for our customers in this context. And

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we've had a lot of focus on supporting customers,

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but what we've announced today are robust financial performance for

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Q two. And as you say, we had

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guided to the year 2023 evolving in a very specific

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way. And we've actually raised our guidance for the

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second part of the year. I think the third

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message, which is really important is the confidence we

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have around the strategy we're executing and our recommitment to

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our targets for really growing the organization and supporting our

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customers in 2024 and 2026. Mm. Ok.

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So, so those are the, that, that's

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your commitment there on the uh second quarter numbers though

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, that higher impairment charge. What's the trajectory that

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you now brace for though, in terms of impairments

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at Lloyds Banking Group? Yeah, actually in terms

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of our impairments and our credit uh performance, it's

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been really resilient. We guided at the start of

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the year and in Q one, our impairment numbers

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were about 30 basis points. Uh in terms of

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our guidance for the year, when you look at

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the underlying impairments for quarter quarter two, it was

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29 basis points so very much in line with our

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guidance. And that's what we continue to see real

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resilience around our credit portfolios that the additional add on

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in Q two was specific to some economic scenarios.

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We updated our outlook for the economy and although it's

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a bit stronger in 2023 we actually are saying that

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there's not going to be a recession in 2023.

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Now, there's going to be modest growth. We

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are also predicting because rates will be higher for longer

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, that unemployment will get a bit higher in 2025

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. And so the economic adjustments we made to our

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impairments reflect that forward looking view, underlying impairments show

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real resilience. And we're guiding to the same guidance

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we've given for the last six months