Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 29

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 29
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2025 was £ 100 million, versus an impairment release of £ 83 million in the first half of 2024 which included a £55 million release from improvements to the Group’s macroeconomic outlook . A small number of material single name charges have been observed, in addition to a £75 million charge from the updated Macroeconomic outlook which included the potential impact from idiosyncratic risks to businesses arising from global tariffs and political disruption • ECL allowances increased in the year to £ 1,005 million at 30 June 2025 (31 December 2024: £ 985 mi llion), also as a result of the updates to single name cases and additional judgement • Stage 2 loans and advances reduced to £ 4,862 million (31 December 2024: £ 5,168 million), largely as a result of migrations into Stage 3. Stage 2 as a proportion of total loans and advances to customers reduced to 5.4% (31 December 2024: 5.8% ) with underlying credit performance and Stage 2 ECL coverage stable at 6.4% (31 December 2024: 6.1% ) • Stage 3 loans and advances increased to £ 2,034 million (31 December 2024: £ 1,839 million) and as a proportion of total loans and advances to customers to 2.3% (31 December 2024: 2.1% ). Stage 3 ECL coverage remained broadly stable at 23.1% (31 December 2024: 22.6% )

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| LLOYDS BANKING GROUP PLC | 2025HALF-YEAR RESULTS |

CREDIT RISK (continued) Commercial Banking UK Real Estate analysis • Commercial Banking UK Real Estate committed drawn lending stood at £ 9.3 billion at May 2025 (net of £ 2.7 billion exposures subject to protection through Significant Risk Transfer (SRT) securitisations). This compares to £9.3 billion at 31 December 2024 (net of £3.1 billion subject to SRT securitisations). In addition there are undrawn lending facilities of £ 3.7 billion (31 December 2024: £ 2.8 billion) to predominantly investment grade rated corporate customers • The Group classifies Real Estate as exposure which is directly supported by cash flows from property activities (as opposed to trading activities, such