Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 40

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 40
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 total lending at 1.9% (31 December 2024: 2.0%). Migrations into Stage 3 from a small number of cases within Commercial Banking are offset by continued resilient Retail performance, especially within UK Mortgages where default rates continue to improve. This also resulted in stable Stage 3 coverage at Group level at 16.0% (31 December 2024: 16.4%).

#### Prudent risk appetite and risk management
● The Group continues to take a prudent and proactive approach to credit risk management and credit risk appetite with robust oversight, particularly in response to recent external events. Risk appetite is in line with the Group's strategy and helps support customers during continued economic uncertainties in both global and domestic markets

● Sector, asset and product concentrations within the portfolios are closely monitored and controlled, with mitigating actions taken where appropriate. Sector and product risk parameters help manage exposure to higher risk and cyclical sectors, segments and asset classes

● The Group's effective risk management seeks to ensure early identification and management of customers and counterparties who may be showing signs of distress

● The Group will continue to work closely with its customers to ensure that they receive the appropriate level of support where required

**CREDIT RISK (continued)

Impairment charge (credit) by division - statutory and underlying A basis**

|                                      | Half-year to 
  30 Jun 2025 
           £m |     |      Half-year 
 to 30 Jun 2024 
             £m |     | Change 
      % |     | Half-year 
 to 31 Dec 
      2024 
        £m |     | Change 
      % |
| UK                                   
 mortgages                            |         -133 |     |           -119 |     |     12 |     |       -75 |     |     77 |
| Credit                               
 cards                                |          200 |     |            115 |     |    -74 |     |       155 |     |    -29 |
| UK                                   
 unsecured loans and overdrafts       |          163 |     |            140 |     |    -16 |     |       132 |     |    -23 |
| UK                                   
 Motor Finance                        |          111 |     |             61 |     |    -82 |     |        55 |     |        |
| Other                                |            1 |     |             -3 |     |        |     |        -4 |     |        |