Company: LLOBF
Filing Date: 2025-05-01
Form Type: 6-K
Source: 0001654954-25-004952
Chunk: 8

Company: Lloyds Banking Group plc
Filing Date: 2025-05-01
Form: 6-K
Chunk 8
---
 Banking deposits were up £2.3 billion in the quarter, aided by short term balances.

The Group delivered £0.9 billion net new money in Insurance, Pensions and Investments and Wealth open book assets under administration (AuA) over the period. In total, open book AuA stand at c.£199 billion at 31 March 2025.

The Group has a large, high quality liquid asset portfolio held mainly in cash and government bonds, with all assets hedged for interest rate risk. The Group’s liquid assets continue to significantly exceed regulatory requirements and internal risk appetite, with a strong, stable liquidity coverage ratio of 145% (31 December 2024: 146%) and net stable funding ratio of 128% (31 December 2024: 129%). The loan to deposit ratio of 96%, stable compared to 31 December 2024, continues to reflect a robust funding and liquidity position, with significant capacity to grow lending.

#### Capital
The Group’s CET1 capital ratio at 31 March 2025 was 13.5% (31 December 2024: 13.5% pro forma). Capital generation during the first three months was 27 basis points, reflecting strong banking build after the impact of front-loaded severance costs, partially offset by risk-weighted asset increases, including temporary increases. The Group has accrued a foreseeable ordinary dividend of 23 basis points, based upon a pro-rated amount of the 2024 full year dividend. The Group continues to expect capital generation in 2025 to be c.175 basis points.

Risk-weighted assets increased by £5.5 billion to £230.1 billion at 31 March 2025 (31 December 2024: £224.6 billion). This reflects the impact of strong lending growth, but also includes a temporary c.£2.5 billion increase primarily due to hedging activity that is expected to reverse by the third quarter. The growth in risk-weighted assets was partly offset by continued optimisation activity and other movements. While no Retail secured CRD IV increases were recognised during the quarter, the Group continues to envisage that the overall uplift to be recognised against performing exposures in respect of CRD IV secured assets could be modestly higher than £5 billion (including the £3.3 billion recognised in 2024), subject to finalisation with the PRA.

The Group’s regulatory CET1 capital requirement remains at around 12%. This includes the Pillar 2A CET1 capital requirement