Company: LLOBF
Filing Date: 2025-10-23
Form Type: 6-K
Source: 0001654954-25-012079
Chunk: 11

Company: Lloyds Banking Group plc
Filing Date: 2025-10-23
Form: 6-K
Chunk 11
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.2 |     |     2.7 |     |    16.3 |     |     0.7 |     |         |     |         |

1 UK mortgages balances on an underlying basis A exclude the impact of the HBOS acquisition-related adjustments.

2 UK Motor Finance balances on an underlying basis A exclude a finance lease gross up.

3 Contains central fair value hedge accounting adjustments.

4 UK Motor Finance includes £223 million relating to provisions against residual values of vehicles subject to finance leases.

5 Stage 3 and Total exclude loans in recoveries in credit cards of £7 million, UK unsecured loans and overdrafts of £5 million, Business and Commercial Banking of £200 million and Corporate and Institutional Banking of £1 million.

**ADDITIONAL INFORMATION (continued)

Total ECL allowance by scenario – underlying basis A**

The following table shows the Group’s ECL for the probability-weighted, upside, base case, downside and severe downside scenarios. As at 31 December 2024, the severe downside scenario incorporated adjustments made to UK Bank Rate and Consumer Price Index (CPI) inflation paths which, as at 30 September 2025, have been removed.

| Underlying basisA    | Probability- 
 weighted     
 £m           |       |     | Upside 
     £m |     | Base case 
        £m |     | Downside 
       £m |     |   Severe 
 downside 
       £m |
| At 30 September 2025 |              | 3,468 |     |  2,656 |     |     3,052 |     |    3,947 |     |    5,712 |
| At 31 December 2024  |              | 3,651 |     |  2,634 |     |     3,204 |     |    4,159 |     |    6,515 |

#### Base case and MES economic assumptions
The Group’s base case economic scenario has been updated to reflect ongoing geopolitical developments and changes in domestic economic policy. The Group’s updated base case scenario has the following conditioning assumptions. First, global conflicts do not lead to major discontinuities in commodity prices or global trade. Second, the US effective tariff rate is maintained at prevailing levels pending a switch to a sector-based tariff framework. Third, UK fiscal policy acts to restore a margin of headroom against the current fiscal rules.

Based on these assumptions and incorporating the economic data published in the second