Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 38

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 38
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 otherwise under the
terms of the Additional Tier 1 Securities.

There may be regulatory restrictions on distributions
that will restrict LBG from making interest payments on the Additional Tier 1 Securities in certain circumstances, in which case LBG will
cancel such interest payments.

The capital, resolution and leverage frameworks
to which we are subject require us to hold certain levels of capital, including common equity Tier 1 capital and additional loss absorbing
capacity (MREL). A failure to hold sufficient levels of capital, including common equity Tier 1 capital, or MREL, as required by these
frameworks (as may be amended from time to time) may result in restrictions on distributions being applied pursuant to which we may be
required to cancel (in whole or in part) interest payments in respect of the Additional Tier 1 Securities. Cancellation (in whole or in
part) of interest payments in respect of the Additional Tier 1 Securities may affect the value of your investment in the Additional Tier
1 Securities.

<div align='center'>S-34</div>

We are required, on a consolidated basis, to hold
a minimum amount of total regulatory capital of 8% of risk weighted assets, a minimum amount of Tier 1 Capital of 6% of risk weighted
assets and a minimum amount of common equity Tier 1 capital of 4.5% of risk weighted assets (the “Pillar 1 requirements”).
In addition, the PRA requires us to hold extra capital to cover risks not covered or insufficiently covered by the Pillar 1 requirements
(the “Pillar 2A requirements”). Our Pillar 2A CET1 requirement as of December 31, 2024 was approximately 1.5% of risk
weighted assets. In addition, the capital that firms use to meet their minimum requirements (Pillar 1 own funds and Pillar 2A) cannot
be counted towards meeting the “combined buffer requirement”, meaning that the combined buffer requirement will effectively
be applied above both the Pillar 1 own funds and Pillar 2A requirements.

In addition to the requirements described above,
we must maintain several capital buffers, which are required to be met with common equity Tier 1 capital and which have been fully phased
in since January 1, 2019. The combination of (i) the capital conservation buffer (the “CCB”) (which increased to 2.5%
from 2019), (ii) the time-vary