De-risking efforts yet to boost profits at Lloyds

Although UK lender Lloyds lowered risk-weighted assets at its commercial banking unit in 2019, the business continues to drag on its profitability.

Lloyds lifted its group-wide Common Equity Tier 1 (CET1) capital ratio by a net 20 basis points through RWA optimisation efforts last year. RWAs at the commercial banking operation fell -11% to £77.4 billion in 2019. The unit is now 24% smaller on a RWA basis than in 2015.

Shrinking the division has not boosted profitability, however. Return on

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