Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 49

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 49
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 convert, write-down or cancel the
Additional Tier 1 Securities given to U.K. resolution authorities pursuant to the rules and regulations described below are in addition
to the terms of the Additional Tier 1 Securities which provide for Automatic Conversion upon the occurrence of a Trigger Event.

As the parent company of U.K. banks, we are subject
to the Special Resolution Regime (“SRR”) under the Banking Act, that gives wide powers in respect of U.K. banks and
their parent and other group companies to HM Treasury, the Bank of England (“BoE”) (including the PRA), and the FCA
in circumstances where a U.K. bank has encountered or is likely to encounter financial difficulties.

<div align='center'>S-39</div>

The SRR consists of five resolution tools, referred
to as stabilization options, and two insolvency and administration procedures applicable to U.K. banks which may be commenced by the BoE
as the resolution authority. The stabilization options provide for:

| • | private sector transfer of all or part of the business of the relevant entity; |

| • | transfer of all or part of the business of the relevant entity to a “bridge bank” established by the BoE; |

| • | transfer to an asset management vehicle; |

| • | the bail-in tool; and |

| • | temporary public ownership (nationalization) of the relevant entity. |

Each of these stabilization options is achieved
through the exercise of one or more “stabilization powers”, which include: (i) the power to make share transfer orders pursuant
to which all or some of the securities issued by a U.K. bank may be transferred to a commercial purchaser, a bridge bank or the U.K. government;
(ii) the resolution instrument power which may make provision for bail-in; (iii) the power to transfer all or some of the property, rights
and liabilities of a U.K. bank to a commercial purchaser or to an entity established by the BoE; and (iv) the third country instrument
powers that recognize the effect of similar special resolution action taken under the law of a country outside the U.K. A share transfer
order can extend to a wide range of securities, including shares and bonds issued by a U.K. bank or its holding company and warrants for
such shares and bonds and could, therefore, apply to the Additional Tier 1 Securities. In addition, the Banking Act grants powers to modify
contractual arrangements in certain circumstances, powers to suspend