Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 27

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 27
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 accounts are a subset of total Stage 3 given the exclusion of accounts in possession and those meeting other Stage 3 criteria. 3 Average loan to value is calculated as total loans and advances as a percentage of the total indexed collateral of these loans and advances.

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

CREDIT RISK (continued) Credit cards • Credit cards balances increased to £ 17.0 billion (31 December 2024: £ 16.2 billion), due to higher demand for new cards and increased customer spending • The credit card portfolio is a prime book, with new to arrears continuing to decline and repayment rates remaining strong • The impairment charge of £ 200 million for the first half of 2025, is higher than the charge of £ 115 million in the first half of 2024 due to upwards revisions to the unemployment forecast, compared to favourable updates in 2024, with underlying portfolio performance remaining resilient. Total ECL coverage is broadly stable at 3.9% (31 December 2024: 4.2% ) • Resilient credit performance and higher portfolio balances result in a slight reduction in Stage 2 loans and advances to 14.0% (31 December 2024: 15.0% ), with Stage 2 ECL coverage stable at 13.2% (31 December 2024: 13.6% ) • Similarly Stage 3 loans and advances reduced slightly to 1.5% (31 December 2024: 1.6% ) with Stage 3 ECL coverage increasing slightly to 51.7% (31 December 2024: 50.2% ) UK unsecured loans and overdrafts • UK unsecured loans and overdraft balances increased to £ 11.6 billion (31 December 2024: £ 10.7 billion) driven by organic balance growth and lower repayments • The impairment charge of £ 163 million for the first half of 2025 is higher than the charge of £ 140 million in the first half of 2024 largely due to upwards revisions to the unemployment forecast. ECL and coverage is broadly stable at total level and across all stages UK Motor Finance • The UK Motor Finance lending portfolio (which does not include operating leases) increased to £ 17.0 billion (31 December 2024: £ 16.4 billion) driven by retail demand, alongside