Company: LLOBF
Filing Date: 2025-02-20
Form Type: 6-K
Source: 0001654954-25-001688
Chunk: 55

Company: Lloyds Banking Group plc
Filing Date: 2025-02-20
Form: 6-K
Chunk 55
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 |     4.5 |     4.8 |     5.0 |     5.2 |
| House price growth                  |     1.6 |    -2.6 |    -4.5 |     1.4 |    -1.1 |    -1.5 |     0.5 |    -2.2 |
| Commercial real estate price growth |   -18.8 |   -21.2 |   -18.2 |    -5.1 |    -4.1 |    -3.8 |    -2.2 |    -0.2 |
| UK Bank Rate                        |    4.25 |    5.00 |    5.25 |    5.25 |    5.25 |    5.00 |    4.75 |    4.50 |
| CPI inflation                       |    10.2 |     8.4 |     6.7 |     4.0 |     3.8 |     2.1 |     2.3 |     2.8 |

#### ECL sensitivity to economic assumptions
The impact of isolated changes in the UK unemployment rate and House Price Index (HPI) has been assessed on a univariate basis. Although such changes would not be observed in isolation, as economic indicators tend to be correlated in a coherent scenario, this gives insight into the sensitivity of the Group's ECL to gradual changes in these two critical economic factors.

The impacts are assessed as changes to base case modelled ECL only (at 100 per cent weighting) with staging held flat to the reported view. The probability weighted ECL impact of applying the changes to all four scenarios, including the impact on staging and post model adjustments, would be greater.

The table below shows the impact on the Group's ECL resulting from a 1 percentage point increase or decrease in the UK unemployment rate. The increase or decrease is presented based on the adjustment phased evenly over the first 10 quarters of the base case scenario. A more immediate increase or decrease would drive a more material ECL impact as it would be fully reflected in both 12-month and lifetime probability of defaults.

|                    | At 31 December 2024 |     |                 |      |     | At 31 December 2023 |     |                 |
| 1pp increase in    
 unemployment       
 £m                 |                     |     |