Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 19

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 19
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 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 30 June 2025, 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% of risk- weighted assets, or 6.5% 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 3.25% of the total leverage exposure measure • A countercyclical leverage buffer (CCLB) which is currently 0.6% of the total leverage exposure measure • An additional leverage ratio buffer (ALRB) of 0.7% of the total leverage exposure measure applies to the RFB sub-group, which equates to 0.6% at Group level At least 75% of the 3.25% minimum leverage ratio requirement as well as 100% of all regulatory leverage buffers must be met with CET1 capital. Stress testing The Group undertakes a wide-ranging programme of stress testing, providing a comprehensive view of the potential impacts arising from the risks to which the Group and its key legal entities are exposed. One of the most important uses of stress testing is to assess the resilience of the operational and strategic plans of the Group and its legal entities to adverse economic conditions and other key vulnerabilities. As part of this programme the Group is participating in the Bank of England 2025 Bank Capital Stress Test. The scenario tests a severe negative global aggregate supply shock, leading to deep recessions globally and in the