Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 37

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 37
---
 will also be reduced by the servicing of other debt and equity instruments.

The ability of LBG’s subsidiaries to pay
dividends and LBG’s ability to receive distributions and other payments from LBG’s investments in other entities is subject
to applicable local laws and other restrictions, including their respective regulatory, capital, loss absorbing capacity and leverage
requirements, statutory reserves, financial and operating performance and applicable tax laws, and any changes thereto. These laws and
restrictions could limit the payment of dividends, distributions and other payments to LBG by LBG’s subsidiaries, which could in
time restrict LBG’s ability to fund other operations or to maintain or increase its Distributable Items.

The level of our Distributable Items may be further
affected by changes to regulation or the requirements and expectations of applicable regulatory authorities. In particular, local capital
or ring-fencing requirements both inside and outside the U.K. could adversely affect our Distributable Items in the future, such as, for
example, the U.K. ring-fencing requirements which have applied from January 2019 and the implementation of section 165 of the Dodd-Frank
Act, including regulatory capital and internal loss absorbing capacity requirements and buffers applicable to intermediate holding companies
(“IHCs”) in the United States and potential restrictions on such IHCs’ ability to engage in capital distributions,
to the extent applicable to LBG.

Further, our Distributable Items may be adversely
affected by the performance of the Group’s business in general, factors affecting its financial position (including capital and
leverage), the economic environment in which the Group operates and other factors outside of our control. See “—Risks Relating to LBG and the Group”.

Our Distributable Items are also sensitive to
the accounting impact of factors such as the redemption of preference shares, restructuring costs and impairment charges and the carrying
value of our investments in subsidiaries, which are carried at the lower of cost and their prevailing recoverable amount. Recoverable
amounts depend on discounted future cash flows, which can be affected by restructurings, such as the U.K. ring-fencing regime, or unforeseen
events. Any of these factors could limit our ability to maintain sufficient Distributable Items.

<div align='center'>S-32</div>

Interest payments on the Additional Tier 1 Securities
shall not be made, in whole or in part, to the extent maximum distributable amounts restrictions apply.

LBG shall not pay any interest otherwise scheduled
to be paid