Company: LLOBF
Filing Date: 2025-10-29
Form Type: 424B2
Source: 0000950103-25-013799
Chunk: 27

Company: Lloyds Banking Group plc
Filing Date: 2025-10-29
Form: 424B2
Chunk 27
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 group and/or to convert certain debt claims
into another security, including ordinary shares of the surviving Group entity, if any, which ordinary shares may also be subject to write-down
or write-off.

As the parent company of U.K. banks, we are subject
to the Special Resolution Regime (“SRR”) under the Banking Act, that gives wide powers in respect of U.K. banks and their
parent and other group companies to HM Treasury, the Bank of England (“BoE”) (including the PRA), and the Financial Conduct
Authority of the United Kingdom (the “FCA”) in circumstances where a U.K. bank has encountered or is likely to encounter financial
difficulties.

It is possible that the exercise of other powers
under the Banking Act to resolve failing banks in the United Kingdom and give the authorities powers to override events of default or
termination rights that might be invoked as a result of the exercise of the resolution powers, could have a material adverse effect on
the rights of holders of the Senior Notes and/or a material adverse effect on the price of the Senior Notes. The Banking Act also gives
BoE the power to override, vary or impose contractual obligations between a U.K. bank, its holding company and its group undertakings
for reasonable consideration, in order to enable any transferee or successor bank to operate effectively. There is also power for the
U.K. Treasury to amend the law (excluding provisions made by or under the Banking Act) for the purpose of enabling it to use the regime
powers effectively, potentially with retrospective effect. In addition, the Banking Act may be further amended and/or other legislation
may be introduced in the United Kingdom to amend the resolution regime that would apply in the event of a bank failure or to provide regulators
with other resolution powers.

<div align='center'>S-20</div>

Finally, the determination that all or part of
the principal amount of Senior Notes will be subject to bail-in is likely to be inherently unpredictable and may depend on a number of
factors which may be outside of our control. This determination will also be made by the relevant U.K. resolution authority and there
may be many factors, including factors not directly related to us or the Group, which could result in such a determination. Because of
this inherent uncertainty, it will be difficult to predict when, if at all, the exercise of a U.K. bail-in power may occur which would
result in a principal write-off or conversion to other securities