Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 51

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 51
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 used (although the mandatory write-down and conversion power should still respect the statutory order described in the
preceding paragraph). 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 you in the resolution and there can be no assurance that you would recover such compensation
promptly or at all.

<div align='center'>S-40</div>

In addition, the Banking Act requires the relevant
U.K. resolution authority to cancel, transfer or dilute common equity tier 1 instruments, permanently write-down, or convert into equity,
additional tier 1 capital instruments (such as the Additional Tier 1 Securities) and tier 2 capital instruments at the point of non-viability
of the relevant entity or its group and before, or together with, the exercise of any stabilization option (the “mandatory write-down and conversion power”) (except in the case where the bail-in tool is to be utilized for other liabilities, in which case such
capital instruments would be written down or converted into equity pursuant to the exercise of the bail-in tool, as described above, rather
than the mandatory write-down and conversion power applicable only to capital instruments). The power has been extended to include internal
eligible liabilities (which may be used independently, or in combination with, a resolution power). See “—The Additional Tier 1 Securities are LBG’s exclusive obligations and LBG is structurally subordinated to the creditors of its subsidiaries”.

The determination that all or part of the principal
amount of the Additional Tier 1 Securities will be subject to the exercise of the bail-in tool or mandatory write-down and conversion
power may be unpredictable and may be outside of our control. Accordingly, trading behavior in respect of the Additional Tier 1 Securities
which are subject to the exercise of such tool or power is not necessarily expected to follow trading behavior associated with other types
of securities. The exercise of the bail-in tool or mandatory write-down and conversion power, as the case may be, in respect of us and/or
the Group and the Additional Tier 1 Securities or any suggestion of any such exercise could materially adversely affect your rights, the
price or value of your investment in the Additional Tier 1 Securities, the trading liquidity of the Additional Tier 1 Securities and/or
the ability of us to satisfy our obligations under the Additional Tier 1 Securities and