Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 30

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 30
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 require firms in scope of the output floor, with internal model permissions, to calculate RWAs for the purposes
of compliance with own funds requirements and buffers, as the higher of: (i) the total RWAs calculated using all approaches that they
have supervisory approval to use (including internal model approaches); and (ii) 72.5% of RWAs calculated using only standardized approaches.
With regards to the output floor transitional period, the PRA has decided to retain the proposed end-date of December 31, 2029. On January
17, 2025, the PRA, in consultation with U.K. HM Treasury announced its decision to further delay the implementation of the Basel 3.1 standards
by one year until 1 January, 2027, citing uncertainty regarding Basel 3.1 implementation plans in the United States. The PRA noted that,
as a result of this delay, the transitional periods in the rules will be reduced to ensure the date of full implementation remains January
1, 2030. Subsequently, on July 15, 2025, the PRA published a consultation paper (CP17/25) proposing a delay in the introduction of the
new internal model approach for market risk in the Basel Committee on Banking Supervision package until January 1, 2028. These proposals
and resulting changes, either individually and/or in aggregate, may lead to further enhanced requirements in relation to the Group’s
capital, leverage, liquidity and funding ratios or alter the way such ratios are calculated.

Because of the inherent uncertainty regarding
whether a Trigger Event will occur and there being no obligation on LBG’s part to prevent its occurrence, it will be difficult to
predict when, if at all, Automatic Conversion could occur. Accordingly, the trading behavior of the Additional Tier 1 Securities may not
necessarily follow the trading behavior of other types of subordinated securities, including LBG’s other subordinated debt securities.
Fluctuations in the CET1 Ratio may be caused by changes in the amount of CET1 Capital and Risk Weighted Assets as well as changes to their
respective definitions under the capital adequacy standards and guidelines set by the Relevant Regulator and changes in accounting rules.
Any indication that the Group’s CET1 Ratio is moving towards the level which would cause the occurrence of a Trigger Event may have
an adverse effect on the market price and liquidity of the Additional Tier 1 Securities. Therefore, investors may not be able to sell
their Additional Tier