Company: LLOBF
Filing Date: 2025-02-20
Form Type: 6-K
Source: 0001654954-25-001688
Chunk: 37

Company: Lloyds Banking Group plc
Filing Date: 2025-02-20
Form: 6-K
Chunk 37
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 requirements and cover economic and business uncertainties is c.13.0 per cent which includes a management buffer of around 1 per cent. This takes into account, amongst other considerations:

● The minimum Pillar 1 CET1 capital requirement of 4.5 per cent of risk-weighted assets

● The Group's Pillar 2A CET1 capital requirement, set by the PRA, which is the equivalent of around 1.5 per cent of risk-weighted assets

● The Group's countercyclical capital buffer (CCyB) requirement which is around 1.8 per cent of risk-weighted assets

● The capital conservation buffer (CCB) requirement of 2.5 per cent of risk-weighted assets

● The Ring-Fenced Bank (RFB) sub-group's other systemically important institution (O-SII) buffer of 2.0 per cent of risk-weighted assets, which equates to 1.7 per cent of risk-weighted assets at Group level

● The Group's PRA Buffer, set after taking account of the results of any PRA stress tests and other information, as well as outputs from the Group's own internal stress tests. The PRA requires this buffer to remain confidential

● The likely performance of the Group in various potential stress scenarios and ensuring capital remains resilient in these

● The economic outlook for the UK and business outlook for the Group

● The desire to maintain a progressive and sustainable ordinary dividend policy in the context of year to year earnings movements

**Minimum requirement for own funds and eligible liabilities (MREL)**

The Group is not classified as a global systemically important bank (G-SIB) but is subject to the Bank of England's MREL statement of policy (MREL SoP) and must therefore maintain a minimum level of MREL resources. Applying the MREL SoP to current minimum capital requirements at 31 December 2024, the Group's MREL, excluding regulatory capital and leverage buffers, is the higher of 2 times Pillar 1 plus 2 times Pillar 2A, equivalent to 21.3 per cent of risk-weighted assets, or 6.5 per cent of the UK leverage ratio exposure measure. In addition, CET1 capital cannot be used to meet both MREL and capital or leverage buffers.

#### Leverage minimum requirements
The Group is currently subject to the following minimum requirements under the UK Leverage Ratio Framework:

● A minimum tier 1 leverage ratio requirement of