Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 22

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 22
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 broadly stable in the first half of 2025 at £ 3,402 million (31 December 2024: £ 3,481 million). Stage 2 loans and advances to customers are slightly lower at £ 43,493 million (31 December 2024: £ 44,765 million) and are 9.2% of total lending (31 December 2024: 9.7% ) largely due to migrations into Stage 3 within Commercial Banking. Stage 2 coverage remained stable at 2.8% (31 December 2024: 2.9% ). Stage 3 loans and advances to customers remain stable at £ 6,822 million (31 December 2024: £6,716 million), and as a percentage of total lending at 1.4% (31 December 2024: 1.5% ). Migrations into Stage 3 from a small number of cases within Commercial Banking are offset by continued resilient Retail performance, especially within UK Mortgages where default rates continue to improve. This also resulted in stable Stage 3 coverage at Group level at 16.4% (31 December 2024: 16.5% ) . Prudent risk appetite and risk management • The Group continues to take a prudent and proactive approach to credit risk management and credit risk appetite with robust oversight, particularly in response to recent external events. Risk appetite is in line with the Group’s strategy and helps support customers during continued economic uncertainties in both global and domestic markets • Sector, asset and product concentrations within the portfolios are closely monitored and controlled, with mitigating actions taken where appropriate. Sector and product risk parameters help manage exposure to higher risk and cyclical sectors, segments and asset classes • The Group’s effective risk management seeks to ensure early identification and management of customers and counterparties who may be showing signs of distress • The Group will continue to work closely with its customers to ensure that they receive the appropriate level of support where required

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

CREDIT RISK (continued) Impairment charge (credit) by division

|                                     | Half-yearto 30 Jun2025£m |     | Half-yearto 30 Jun2024£m |     | Change% |     | Half-yearto 31 Dec2024£m |     | Change% |
| UK mortgages                        |                     -133 |     |                     -119 |