Lloyds Bank is expanding its lending and commercial banking capabilities through digitalization and AI deployment.

THE BIG PICTURE: Manchester, U.K.-based Lloyds today reported 230.1 billion pounds ($306.5 billion) in risk-weighted assets (RWA) in the first quarter, up 2.4% from Q4 2024 and up 24.8% from Q1 2024.

The growth in RWA was largely driven by growth in the bank’s lending segment, which increased 2% quarter over quarter and 4% year over year to $621.6 billion worth of loans, William Chalmers, executive director and chief financial officer, said today during the $1.1 trillion bank’s Q1 earnings call.

Lloyds on April 22 announced it was using FICO’s AI-powered FICO platform for credit decisioning.

The platform supports more than $9.3 billion in annual lending and has led to a 2.5% increase in credit card approvals, according to a release from Lloyds at the time.

The decision to integrate FICO’s platform was in part due to Lloyds’ move to transition to a cloud-based platform with a decisioning-as-a-service model, a FICO spokesperson told Bank Automation News.

Other FIs using FICO’s platform include:

• $1.9 trillion Wells Fargo;
• $487.2 billion Capital One; and
• $102.7 billion Santander.

BY THE NUMBERS: Lloyds in Q1 also reported:

• $5.8 billion in net income, flat from Q4 2024 and up 4% YoY;
• $650.2 billion in customer deposits, up 1% QoQ and up 4% YoY; and
• $3.4 billion in operating costs, up 4% QoQ and up 5% YoY.

OF NOTE: Lloyds is developing new customer-facing AI initiatives and processes in 2025, a spokesperson for the company told BAN in February.

The bank in April announced it had transitioned more than 15 of its modeling systems from on-premises infrastructure to Google Cloud‘s Vertex AI platform.

Since moving to Vertex AI, Lloyds Banking Group has developed more than 80 machine learning use cases and rolled out more than 18 gen AI systems, with another 12 slated to go live by the end of June, according to an April 9 release.

Lloyds is also developing an advanced agentic AI system, created in partnership with Google Cloud, which aims to reshape customer interactions and is expected to debut this year, according to the release.

The bank in March announced a multiyear agreement with IT service provider Oracle for cloud and AI services and sent 300 of its senior executives to the University of Cambridge for AI training.

The bank’s 2025 goals also include scaling its Lloyds Bank Connected digital services platform for business and commercial banking clients, CFO Chalmers said during the call.

MARKET REACTION: Shares of Lloyds Bank (NYSE: LYG) were up/down 2.7% from market open to $94.74 as of market close today. Lloyds has a market capitalization of $56.9 billion.

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