Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 18

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 18
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 threats and incidents such as IT system outages, using threat intelligence and learnings from recent industry events where relevant. The Group is transforming its approach to risk management to support its strategic ambition and purpose of Helping Britain Prosper. Following changes to the three lines of defence model in 2024 to ensure more clearly defined responsibilities and accountabilities across the business, further enhancements to the way the Group delivers risk management have been made by standardising practices and streamlining processes. The Group Risk Management Framework was enhanced during the first half of 2025, along with the approach to risk appetite and risk governance, enabling simplification and efficiency. The Group has 11 principal risks, which are unchanged in 2025 and are underpinned by a suite of level two risks. These risks are reviewed and reported regularly to the Board in alignment with the enhanced Group Risk Management Framework, and consist of capital risk, climate risk, compliance risk, conduct risk, credit risk, economic crime risk, insurance underwriting risk, liquidity risk, market risk, model risk and operational risk. Further information regarding the Group’s principal risks is available on page s 144 to 198 in the Group’s 2024 annual report and accounts.

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

CAPITAL RISK Overview CET1 target capital ratio The Board’s view of the ongoing level of CET1 capital required by the Group to grow the business, meet current and future regulatory requirements and cover economic and business uncertainties is c. 13.0% , which includes a management buffer of around 1%. This takes into account, amongst other considerations: • The minimum Pillar 1 CET1 capital requirement of 4.5% of risk-weighted assets • The Group’s Pillar 2A CET1 capital requirement, set by the PRA, which is the equivalent of around 1.5% of risk- weighted assets • The Group’s countercyclical capital buffer (CCyB) requirement, which is around 1.8% of risk-weighted assets • The capital conservation buffer (CCB) requirement of 2.5% of risk-weighted assets • The Ring-Fenced Bank (RFB) sub-group’s other systemically important institution (O-SII) buffer of 2.0% of risk- weighted assets, which equates to 1.7% of risk-weighted assets at Group level • The Group’s PRA Buffer, set after taking account