Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 53

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 53
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 |     |                          |   -7 |     |        674 |
| Other Retail       |           860 |     |                        |   – |     |                          |   90 |     |        950 |
| Commercial Banking |           894 |     |                        | 354 |     |                          | -259 |     |        989 |
| Other              |            16 |     |                        |   – |     |                          |    – |     |         16 |
| Total              |         3,171 |     |                        | 354 |     |                          |  -44 |     |      3,481 |

Adjustments to modelled ECL

UK mortgages: £ 98 million (31 December 2024: £ 132 million)

These adjustments principally comprise:

Repossession risk: £ 85 million (31 December 2024: £ 110 million)

Additional ECL continues to be held judgementally to capture the potential repossession and recovery risk from

specific subsets of largely long-term defaulted cases. This is alongside an adjustment to capture a longer duration

between default and repossession than model assumptions use on existing and future defaults. The reduction in

the period reflects latest data points on the population judged at risk.

Adjustment for specific segments: £ 13 million (31 December 2024: £ 13 million )

The Group monitors risks across specific segments of its portfolios which may not be fully captured through

collective models. The judgement for fire safety and cladding uncertainty remains in place as the only Mortgages

segment sufficiently material to address, given evidence of cases with defective cladding, or other fire safety issues.

Credit cards: £ 9 million (31 December 2024: £ ( 7) million) and Other Retail: £ 102 million (31 December 2024:

£ 90 million)

These adjustments principally comprise:

Lifetime extension: Credit cards: £ 50 million (31 December 2024: £ 55 million) and Other Retail: £ 10 million

(31 December 2024: £ 10 million)

An adjustment is required to extend the lifetime used for Stage 2 exposures on Retail revolving products from a

three-year modelled lifetime, which reflected the outcome data available when the ECL models were developed,

to a more representative lifetime. Incremental defaults beyond year three are calculated through the extrapolation

of the default trajectory observed throughout the three years and beyond.

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