Lloyds sets £2bn savings target under new 'Accelerate 2030' AI strategy as half-year profits rise 23%
Lloyds sets £2bn savings target under new ‘Accelerate 2030’ AI strategy as half-year profits rise 23% #
Lloyds Banking Group has unveiled a four-year strategy built around artificial intelligence and digital transformation, targeting £2 billion in gross cost savings by 2030, after posting first-half profits that beat analyst forecasts.
The UK’s largest retail bank reported statutory pre-tax profit of £4.3 billion for the six months to the end of June 2026, a 23% rise on the same period a year earlier and above the approximately £4.1 billion most analysts had forecast. Total net income reached £9.7 billion, up 9% year-on-year, driven by a 9% increase in underlying net interest income to £7.3 billion and an 11% gain in other income to £3.3 billion. The banking net interest margin widened to 3.19%. Return on tangible equity came in at 17.1%, surpassing the group’s own 2026 target of more than 16%.
Chief executive Charlie Nunn unveiled the group’s next strategic chapter, labelled “Accelerate 2030,” which will launch in 2027 once the current 2022-2026 plan concludes. The programme involves total investment of more than £13 billion over four years, with AI agent deployment as its focus. Lloyds said it remains on track to deliver more than £2 billion in gross cost savings under the outgoing strategy; the new plan targets an equivalent second tranche by 2030 through continued digital transformation, technology modernisation and broader AI rollout.
Lloyds said its AI-powered customer complaints processing generated a £50 million financial benefit in 2025 and expects that contribution to reach £100 million in 2026. The bank has also unveiled Envoy, an internal platform co-developed with Google Cloud that allows teams across the organisation to build and deploy AI agents within a governed, scalable framework.
Lloyds confirmed it is consolidating its brand portfolio by phasing out the Halifax name and migrating existing customers to the Lloyds brand. The Halifax app is scheduled to close permanently on 31 October.
On shareholder returns, the group announced a 30% increase in its interim ordinary dividend to 1.58 pence per share and a £1 billion share buyback, bringing total first-half capital distributions to £1.9 billion.
Nunn said the bank was “successfully completing” its 2022-2026 strategy and entering the next phase from a “position of strength,” citing strengthened digital and AI capabilities alongside improved cost and capital discipline.
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