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

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 6
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 unwind of the cash flow hedging reserve and issuance of an AT1 capital instrument in February 2025. This was partially offset by the impact of the commenced share buyback programme in respect of 2024, the dividend paid in May 2025, as well as the impact of redemption of an AT1 capital instrument in June 2025 and a lower pension surplus.

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

FINANCIAL REVIEW (continued) Capital The Group’s common equity tier 1 (CET1) capital ratio reduced to 13.8% at 30 June 2025 (31 December 2024: 14.2% ). Banking business profits for the first half of the year and the dividend received from the Group’s Insurance business in February 2025 were more than offset by the recognition of the full capital impact of the announced ordinary share buyback programme in respect of 2024, the accrual for foreseeable ordinary dividends, including the announced interim dividend, distributions on other equity instruments and an increase in risk-weighted assets. The Group’s total capital ratio remained at 19.0% at 30 June 2025 (31 December 2024: 19.0% ). The issuance of new AT1 and tier 2 capital instruments during the period was broadly offset by the reduction in CET1 capital, AT1 and tier 2 instrument calls, other tier 2 movements and the increase in risk-weighted assets. The MREL ratio reduced to 31.4% at 30 June 2025 (31 December 2024: 32.2% ) with the increase in MREL resources, reflecting the increase in total capital resources net of other adjustments, more than offset by the increase in risk-weighted assets. Risk-weighted assets increased by £6,797 million to £231,429 million at 30 June 2025 (31 December 2024: £224,632 million ). This reflects the impact of strong lending growth, but also includes a temporary c.£1.2 billion increase related to hedging activity that is expected to reverse in the third quarter. The growth in risk-weighted assets was partly offset by continued optimisation activity. The Group’s UK leverage ratio reduced to 5.4% at 30 June 2025 (31 December 2024: 5.5% ). The increase in the leverage exposure measure primarily reflects increases across loans and