Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 26

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 26
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, the growth of LBG’s business and LBG’s
future earnings, dividend payments, regulatory changes (including changes to definitions and calculations of regulatory capital, including
CET1 Capital and Risk Weighted Assets (each of which shall be calculated by LBG on a fully loaded, consolidated basis and such calculation
shall be binding on the Trustee and on the person in whose name the Additional Tier 1 Security is registered)), actions that LBG is required
to take at the direction of the Relevant Regulator, and the Group’s ability to manage Risk Weighted Assets in both its ongoing businesses
and those which it may seek to exit. In addition, the Group has capital resources and risk weighted assets denominated in foreign currencies,
and changes in foreign exchange rates will result in changes in the pounds sterling equivalent value of foreign currency denominated capital
resources and risk weighted assets. Actions that LBG takes could also affect its CET1 Ratio, including causing it to decline. LBG has
no obligation to increase its CET1 Capital, reduce its Risk Weighted Assets or otherwise operate its business in such a way as, or take
mitigating actions, to prevent its CET1 Ratio from falling below 7.00%, maintain or increase its CET1 Ratio or otherwise consider the
interests of the holders of the Additional Tier 1 Securities in connection with any of its business decisions that might affect LBG’s
CET1 Ratio.

The calculation of LBG’s CET1 Ratio may
also be affected by changes in applicable accounting rules, which may result in increased impairment charges (or volatility in impairment
charges as was the case with IFRS 9), or by changes to regulatory adjustments which modify the regulatory capital impact of accounting
rules. Impairment charges may cause significant decreases in our CET1 Ratio, especially given that the transitional arrangements which
have softened the impact of IFRS 9 on our loan loss allowances and allowed financial institutions to add-back increases in expected credit
loss provisions to CET1 capital have been phased out at the end of 2024. Even if changes in applicable accounting rules, or changes to
regulatory adjustments that modify the regulatory impact of accounting rules, are not yet in force as of the relevant calculation date,
the Relevant Regulator could require us to reflect such changes in any particular calculation of the CET1 Ratio. Accordingly, accounting
changes or regulatory changes may have a material adverse impact on LBG’s calculations of regulatory capital resources and requirements,
including CET1 Capital and Risk