Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 25

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 25
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fully loaded” basis. This will result in a lower calculated CET1 Ratio than one using U.K. CRR transitional provisions, increasing the potential for Automatic Conversion in the short term. Changes to the calculation of CET1 capital and/or risk weighted assets may negatively affect LBG’s CET1 Ratio, thereby increasing the risk of a Trigger Event which will lead to the Automatic Conversion, as a result of which your Additional Tier 1 Securities would automatically be converted into Settlement Shares”.

See also “—If a Relevant Event occurs, the Additional Tier 1 Securities may be convertible into shares in an entity other than LBG or may be converted into unlisted shares.” and “—Holders may be obliged to make a take-over bid following a Trigger Event if they take delivery of Settlement Shares” below.

The circumstances surrounding or triggering
the Automatic Conversion are inherently unpredictable and may be caused by factors outside of LBG’s control. LBG has no obligation
to operate its business in such a way as, or take any mitigating actions, to maintain or restore its CET1 Ratio to avoid a Trigger Event
and actions LBG takes could result in its CET1 Ratio falling.

<div align='center'>S-28</div>

The occurrence of a Trigger Event and,
therefore, the Automatic Conversion, is inherently unpredictable and depends on a number of factors, some of which may be outside of
LBG’s control. Although LBG currently publicly reports the Group’s fully loaded CET1 Ratio only as of each quarterly
period end, the Relevant Regulator, as part of its supervisory activity, may calculate or instruct LBG to calculate such ratio as of
any date, including if LBG is subject to recovery and resolution actions by the relevant U.K. resolution authority (as defined under
“Description of the Additional Tier 1 Securities— Redemption, Purchase, Variation and Substitution—Conditions to Redemption, Purchase, Substitution or Variation”), or LBG might otherwise determine to calculate such ratio in its own
discretion. As such, the Automatic Conversion could occur at any time. Moreover, it is likely that the relevant U.K. resolution
authority would allow a Trigger Event to occur rather than to resort to the use of public funds.

A Trigger Event will occur if LBG, the Relevant
Regulator or any agent appointed for such purpose by the Relevant Regulator determines that LBG’s CET1 Ratio is below 7.00% as of
any such calculation date. Such calculation could be affected by, among other things