Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 49

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 49
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 Liabilities arising from non-participating investment contracts       |         – |     |    51,228 |     |         – |     |  51,228 |
| Total financial liabilities carried at fair value                     |     2,479 |     |    97,592 |     |       444 |     | 100,515 |

| Page 56 of74 |

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

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED) (continued) Note 10: Fair values of financial assets and liabilities (continued) Valuation control framework Key elements of the valuation control framework include model validation (incorporating pre-trade and post-trade testing), product implementation review and independent price verification. The framework covers processes for all 3 levels in the fair value hierarchy. Formal committees meet quarterly to discuss and approve valuations in more judgemental areas. Transfers into and out of level 3 portfolios Transfers out of level 3 portfolios arise when inputs that could have a significant impact on the instrument’s valuation become market observable; conversely, transfers into the portfolios arise when sources of data cease to be observable. Valuation methodology For level 2 and level 3 portfolios, there is no significant change to the valuation methodology (techniques and inputs) disclosed in the Group’s financial statements for the year ended 31 December 2024 applied to these portfolios. Movements in level 3 portfolio The tables below analyse movements in the level 3 financial assets portfolio.

|                                                                                                                                                             | Financialassets atfair valuethrough profitor loss£m |     | Financialassets atfair valuethrough othercomprehensiveincome£m |     |     | Derivativeassets£m |     | Totalfinancialassetscarried atfair value£m |
| At 1 January2025                                                                                                                                            |                                               9,889 |     |                                                                | 373 |     |                741 |     |                                     11,003 |
| Exchange and other adjustments                                                                                                                              |                                                  -1 |     |                                                                |   2 |     |                 12 |     |                                         13 |
| Gains (losses) recognised in the income statementwithin other income                                                                                        |                                                 213 |     |                                                                |   2 |     |               -154 |     |                                         61 |
| Gains recognised in other comprehensive incomewithin the revaluation reserve in respect of financialassets