Lloyds Banking Group PLC (LSE:LLOY) chief executive (CEO) Charlie Nunn has warned the UK is in danger of talking itself into recession, adding there are "pockets of strength in the economy” in spite of the gloomy headlines.
"I think we collectively are talking ourselves into the risk of too negative an outlook,” Nunn said In an interview with the BBC.
Nunn admitted, though, that 75% of its customers are worried about the cost-of-living crisis and the vast majority of its customers have little in their accounts to act as a buffer.
"80% of individuals and UK customers and families have less than £500 worth of savings in their current account and their savings account,” the CEO commented.
They may have money held elsewhere but it is still a significant “starting point for looking at financial resilience," the boss of the UK’s largest high street bank said.
Lloyds customers with persistent debt problems grew by a third in the first six months of the year but Nunn insisted half of those were in a better financial position compared with pre-pandemic times.
Credit card spending advanced - at the quickest rate in 17 years – driven largely by travel, he added.
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