Lloyds Banking Group is preparing to strengthen its foothold in workplace pensions, making its wealth segment a central pillar of its strategy through 2030. The bank aims to challenge companies like Aviva Plc, a major player in UK retirement plans and life insurance, according to a person familiar with the matter. Lloyds intends to attract more large corporate clients as part of this pension push, seeking revenue streams that are less cyclical and capital-light, based on internal documents reviewed by Bloomberg.
Traditional UK retail banks have historically relied on interest income from mortgages and loans. Under CEO Charlie Nunn, Lloyds has worked to reduce its dependence on interest rates by expanding into wealth services and insurance. Boosting non-bank revenue would shield the bank from fluctuations in interest rates in the years ahead.
Non-interest income grew 9% year-over-year in both 2024 and 2025, financial reports show.
Lloyds' Non-Banking Revenue Rises
Growth in pensions and wealth supplements core banking earnings
Note: 2026 Q2 numbers are estimates.
Source: Bloomberg, Lloyds financial statements
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The bank's five-year plan includes efforts to boost cross-selling, according to individuals with knowledge of the matter who spoke on condition of anonymity because the discussions are internal. The plans are not yet final and could be adjusted. A representative for Lloyds provided no comment.
Chief Financial Officer William Chalmers noted that the bank plans to maintain investment in income sources beyond interest. He described that focus, alongside what Lloyds calls "GDP plus growth opportunities," as a key part of the next strategy. Chalmers delivered his comments during a conference hosted by Goldman Sachs in Europe in early June.
Lloyds is scheduled to release its next strategic update in July. This will mark the next phase of Nunn's leadership, following his 2022 digital and technology strategy, which resulted in peak earnings following several years of cost reductions and service cuts.
At the end of last year, Lloyds had set goals to expand its mass affluent client base and grow other operating income, as disclosed in its annual report.
Diversification Effort
When it comes to broadening its financial base, Lloyds has outpaced several of its rivals. Last year it acquired the remaining 49% stake in Schroders Personal Wealth, adding 60,000 clients and about £17 billion in assets under administration.
The bank owns pension provider Scottish Widows. Its open book assets under administration reached £232 billion by end of last year, up 15% from 2024, partly due to inflows from its workplace pension operations, a financial report noted. Earlier in 2025, Lloyds participated in bidding for the UK division of Dutch insurer Aegon Ltd., as per Bloomberg.
The new strategy is anticipated to emphasize cross-selling wealth and insurance offerings through a unified Lloyds banking application, the sources said. Lloyds additionally aims to gain greater online visibility via partnerships, such as integrated offerings within real estate websites. The bank currently provides banking accounts, rewards, motor finance, loans, and mortgages on its app; however, certain offerings have proven challenging to market across different lines due to legacy systems, the people noted.
The push for more cross-selling, especially for mortgages and motor financing, might result in well-known brands such as Halifax being consolidated into the Lloyds group, featuring the Black Horse logo and green color scheme, according to those familiar with the matter. No final decision has been made.
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