Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 28

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 28
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9/24,
addressing the bulk of the remainder of CP16/22 was published on September 12, 2024, confirming the implementation date as January 1,
2026, subject to certain transitional provisions. The PRA stated that it does not intend to change the policy or make substantive alterations
to these 'near-final' rules before publishing the final rules. The proposed changes affect existing approaches to calculation of risk
weights and introduce new limits around the use of internal models to calculate risk weights. In particular, the proposed rules introduce
a floor on RWAs that would require firms in scope of the output floor, with internal model permissions, to calculate RWAs for the purposes
of compliance with own funds requirements and buffers, as the higher of: (i) the total RWAs calculated using all approaches that they
have supervisory approval to use (including internal model approaches); and (ii) 72.5% of RWAs calculated using only standardized approaches.
With regards to the output floor transitional period, the PRA has decided to retain the proposed end-date of December 31, 2029. On January
17, 2025, the PRA, in consultation with U.K. HM Treasury announced its decision to further delay the implementation of the Basel 3.1
standards by one year until 1 January, 2027, citing uncertainty regarding Basel 3.1 implementation plans in the United States. The PRA
noted that, as a result of this delay, the transitional periods in the rules will be reduced to ensure the date of full implementation
remains on January 1, 2030. These proposals and resulting changes, either individually and/or in aggregate, may lead to further enhanced
requirements in relation to the Group’s capital, leverage, liquidity and funding ratios or alter the way such ratios are calculated.

<div align='center'>S-29</div>

Because of the inherent uncertainty regarding
whether a Trigger Event will occur and there being no obligation on LBG’s part to prevent its occurrence, it will be difficult to
predict when, if at all, Automatic Conversion could occur. Accordingly, the trading behavior of the Additional Tier 1 Securities may not
necessarily follow the trading behavior of other types of subordinated securities, including LBG’s other subordinated debt securities.
Fluctuations in the CET1 Ratio may be caused by changes in the amount of CET1 Capital and Risk Weighted Assets as well as changes to their
respective definitions under the