Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 31

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 31
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1 Securities easily or at prices that will provide them with a yield comparable to other types of subordinated securities,
including LBG’s other subordinated debt securities. In addition, the risk of Automatic Conversion could drive down the price of
the Ordinary Shares and have a material adverse effect on the market value of Settlement Shares received upon Automatic Conversion.

Changes to the calculation of CET1 capital and/or
risk weighted assets may negatively affect LBG’s CET1 Ratio, thereby increasing the risk of a Trigger Event which would lead to
the Automatic Conversion, as a result of which your Additional Tier 1 Securities will automatically be converted into Settlement Shares.

LBG is required to calculate its capital resources
for regulatory purposes on the basis of “common equity tier 1 capital” or “CET1 Capital” as determined in accordance
with the Applicable Regulations, including U.K. CRR. LBG is also required to calculate its “risk weighted assets”, which represent
assets adjusted for their associated risks, on the basis set out in the Applicable Regulations, including U.K. CRR. Each of these definitions
will be calculated in accordance with the capital adequacy standards and guidelines of the Relevant Regulator applicable to LBG on the
relevant date.

The U.K. CRR legislation sets out a minimum pace
of introduction of such enhanced capital requirements (the “Transitional Provisions”). The Transitional Provisions
were designed to implement certain U.K. CRR requirements in stages over a prescribed period commencing in 2014; however, each of the EU
Member States and the United Kingdom had the discretion to accelerate that minimum pace of transition in certain respects. In the United
Kingdom, the PRA accelerated the introduction of certain of the enhanced capital requirements under U.K. CRR, thus requiring the Group
to meet certain capital targets, without having regard to any Transitional Provisions in that respect. LBG has applied those Transitional
Provisions since January 1, 2018.

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At September 30, 2025, LBG’s CET1 Ratio
giving full effect to U.K. CRR on a fully loaded basis was 13.8%. For further information, see LBG’s Annual Report on Form 20-F
filed with the SEC on February 20, 2025 and LBG’s report on Form 6-K filed with the SEC on October 23, 2025 announcing its interim
report, which includes the