Lloyds Banking Group reported substantial value from AI deployment within lending, complaint management, fraud detection, customer service and engineering in the second quarter.  

Lloyds expects agentic and generative AI tools to deliver more than 100 million pounds ($134 million) of value in 2026, more than doubling its AI-generated value in 2025, Chief Executive Charlie Nunn said during today’s earnings call.  

In its earnings presentation, the bank attributed AI value to:

• More than 11 million customers using its “explore your spending” tool, an AI-powered financial assistant in Lloyds’ mobile banking app;
• Roughly 40,000 employees using its knowledge management tool, reducing search times for internal information by up to 75%;
• Complaints classification times reduced to less than one second; 
• A digital fraud detection rate of roughly 90%; and
• More than 11,000 engineers and developers using Microsoft’s coding tool GitHub Copilot, reducing legacy code conversion times by roughly 50%.  

Lloyds expects AI to play a role in every customer interaction and be used by every employee by 2030, Nunn said.  

AI and other tech initiatives are projected to save the company roughly $2.7 billion from 2027 to 2030, according to the presentation. 

Meanwhile, Lloyds reported $6.7 billion in net income in Q2, up 9.7% year over year.  

New AI tools, opportunities  

The $1.3 billion, London-based bank highlighted new AI tools and initiatives in Q2.  

On the retail front, Lloyds rolled out an AI mortgage solution in its mobile app that can cut median offer times by 70% to less than three days, with other features including automated property valuation and real-time income verification, according to the presentation. 

Lloyds plans to layer additional AI and blockchain technologies onto the platform to increase personalization and speed, Nunn said. 

“Agentic AI will make it easier than ever for customers to get advice and better value on their mortgages and broader homeownership needs.”

— Charlie Nunn, CEO, Lloyds

The bank also launched a mobile platform with AI tools that help customers with vehicle purchasing and financing, according to the presentation.  

“AI will offer tailored guidance, helping customers choose vehicles that suit their needs and budgets,” Nunn said.  

For commercial banking, Lloyds plans to deploy AI for trading and to better serve corporate clients overall, especially in the mid-market sector, Nunn said.  

“Our strategy therefore focuses on digital and AI-enabled differentiation and doubling the size of our relationship team to support clients and growth and further enhancing our products,” he said.  

“We will offer seamless digital experiences, improving access to cash alongside simple, flexible payment solutions for small businesses.” 

The bank is focused on developing products with “more comprehensive offerings” across both trade and working capital, complementing its heightened focus on mid-market clients, he said. 

“Relationship managers will leverage AI tools to establish us as the leading partner for this vital segment, supported by our deep regional presence,” Nunn said. 

Editor’s note: All amounts have been converted to U.S. dollars.  

Register here for the FinAi Lending Summit, set for Oct. 7-8 in Las Vegas. This inaugural event will include speakers from Fifth Third, Chase and Capital One as well as a fireside chat with Piermont Bank founder and Chief Executive Wendy Cai-Lee.