Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 55

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 55
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 and conversion powers, which powers are in addition to the terms of the Additional Tier 1 Securities which provide for Automatic Conversion on the occurrence of a Trigger Event.") if they receive less favorable treatment than would have been the case had LBG entered into normal insolvency
proceedings. However, even in circumstances where a claim for compensation is established under the “no creditor worse off”
safeguard in accordance with a valuation performed after the resolution action has been taken, it is unlikely that such compensation would
be equivalent to the full losses incurred by the holders of the Additional Tier 1 Securities in the resolution and there can be no assurance
that such holders would recover such compensation promptly or at all. In addition, due to the discretion afforded to the BoE, the claims
of some creditors whose claims would rank equally with yours may be excluded from being subject to the bail-in tool. The greater number
of such excluded creditors there are, the greater the potential impact of the bail-in tool on other creditors who have not been excluded
(which may include you). As the implementation of these provisions remains to be tested and may be further amended, there can be no certainty
as to how these legal protections or remedies would be implemented by the relevant U.K. resolution authority.

Where the mandatory write-down and conversion
power is used, the write-down is permanent and investors receive no compensation (save that common equity tier 1 instruments may be required
to be issued to holders of written-down instruments). The mandatory write-down and conversion power is not subject to the no creditor
worse off safeguard, unless another stabilization power is also used.

Further, although the BoE’s resolution instrument
with respect to the exercise of the bail-in tool must set out the provisions allowing for securities to be transferred, canceled or modified
(or any combination of these), the resolution instrument may make any other provision that the BoE considers to be appropriate in exercising
its specific powers. Such other provisions are expected to be specific and tailored to the circumstances that have led to the exercise
of the bail-in tool under the Banking Act and there is uncertainty as to the extent to which usual processes and/or procedures under English
law will be available to holders of securities (including the Additional Tier 1 Securities). Accordingly, you may have limited or circumscribed
rights to challenge any decision of the BoE or other relevant U.K. resolution authority to exercise its U.K. Bail-in Power.

The SRR is designed to be triggered prior to
our insolvency and holders