Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 30

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 30
---
 as hotels, care homes and housebuilders). Drawn lending of £ 6.8 billion to social housing providers are also excluded (31 December 2024: £ 7.2 billion) • Despite some headwinds, including the impact of elevated interest rates, the portfolio continues to remain well- positioned and proactively managed with conservative LTVs, good levels of interest cover and appropriate risk mitigants in place • Overall performance of the portfolio has remained resilient. The Group has continued to see strong asset quality within this sector, with a decrease in cases in its more closely monitored Watchlist category and limited flow into Business Support • Lending continues to be heavily weighted towards investment real estate (c. 94% ) rather than development. Of these investment exposures c. 93% have an LTV of less than 70%, with an average LTV of 45% . The average interest cover ratio was 3.1 times, with 75% having interest cover of above 2 times • The portfolio is well diversified with no fully speculative commercial development lending (defined as property not pre-sold or pre-let at a level to fully repay the debt or generate sufficient income to meet the minimum interest cover requirements). Approximately 47 % of exposures relate to commercial real estate, including c. 13% secured by office assets, c . 9% by retail assets and c. 12% by industrial assets. Approximately 51% of the portfolio relates to residential lending • Recognising this is a cyclical sector, total (gross and net) and asset type quantum caps are in place to control origination and exposure. Focus remains on the UK market and new business has been written in line with a prudent risk appetite criteria including conservative LTVs, strong quality of income and proven management teams. Development lending criteria also includes maximum loan to gross development value and maximum loan to cost • Use of SRT securitisations also acts as a risk mitigant in this portfolio. Run-off of these is carefully managed and sequenced to avoid concentrations

| Page 31 of74 |

| LLOYDS BANKING GROUP PLC | 2025HALF-YEAR RESULTS |

LIQUIDITY RISK Overview The Group has maintained its strong funding and liquidity position with a loan to deposit ratio of 95% as at 30 June 2025 (31 December 2024: 95% ). Total wholesale funding was stable at £ 92.2 billion as at 30 June 2025 (31 December 202