Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 31

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 31
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4: £ 92.5 billion). The Group maintains access to diverse sources and tenors of funding. The Group’s liquid assets continue to exceed the regulatory minimum and internal risk appetite, with a liquidity coverage ratio (LCR) 1 of 145% as at 30 June 2025 (31 December 2024: 146% ) calculated on a Group consolidated basis based on the PRA rulebook. The decrease in the LCR resulted from a reduction in liquid assets, primarily driven by an increase in lending, offset by an increase in customer deposits. All assets within the liquid asset portfolio are hedged for interest rate risk. Following the implementation of structural reform, liquidity risk is managed at a legal entity level with the Group consolidated LCR representing the composite of the Ring-Fenced Bank and Non-Ring-Fenced Bank entities. LCR eligible assets 1 have reduced to £ 131.8 billion (31 December 2024: £ 134.4 billion), primarily driven by an increase in lending, offset by an increase in customer deposits. In addition to the Group’s reported LCR eligible assets, the Group maintains borrowing capacity at central banks which averaged £73 billion in the 12 months to 30 June 2025. The net stable funding ratio remains strong at 127% (based on a quarterly simple average over the previous four quarters) as at 30 June 2025 (31 December 2024: 129% ). LCR eligible assets comprise £ 126.3 billion LCR level 1 eligible assets (31 December 2024: £ 128.5 billion) and £ 5.5 billion LCR level 2 eligible assets (31 December 2024: £ 5.9 billion). These assets are available to meet cash and collateral outflows and regulatory requirements. The Insurance business manages a separate liquidity portfolio to mitigate insurance liquidity risk. The banking business also has a significant amount of non-LCR eligible liquid assets which are eligible for use in a range of central bank or similar facilities. Future use of such facilities will be based on prudent liquidity management and economic considerations, having regard for external market conditions. During the first half of 2025, the Group accessed wholesale funding across a range of currencies and markets with term issuance volumes totalling £ 8.0 billion. The Group expects full-year wholesale issuance requirements of around £10.0 billion for 2025. The total outstanding amount of drawings from the Bank of England’s Term Funding Scheme with additional incentives for