Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 28

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 28
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 increased stocking • Updates to Residual Value (RV) and Voluntary Termination (VT) provisions held against Personal Contract Purchase (PCP) and Hire Purchase (HP) lending are included within ECL and the impairment charge. Falls in used vehicle values have primarily driven an ECL increase to £ 211 mi llion as at 30 June 2025 (31 December 2024: £ 178 million) • The impairment charge of £ 111 million for the first half of 2025 is higher than the charge of £ 61 million for the first half of 2024, reflecting increased RV and VT charges year-on-year Other • Other loans and advances increased to £ 20.3 billion (31 December 2024: £ 18.0 billion), largely driven by the European business • Stage 3 loans and advances remained stable at 0.8% of total loans and advances (31 December 2024: 0.8% ) • There was a £1 million impairment charge in the first half of 2025, compared to a £ 3 million release in the first half of 2024

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

CREDIT RISK (continued) Commercial Banking • The Commercial portfolio credit quality remains stable, benefitting from a focused approach to credit underwriting and monitoring standards supported by proactive management of exposures to higher risk and cyclical sectors • Credit strategies and policy remains robust and within our credit risk tolerances. The Group remains cognisant of the continued relatively elevated interest rate environment especially in, but not limited to, sectors reliant upon consumer discretionary spend • The Group continues to review segments of our portfolios as appropriate, ensuring our credit strategies, appetite, sensitivities and mitigation action plans are up-to-date and suitable for rapid action in response to both risks and opportunities, whilst supporting clients in the right way and ensuring the Group is protected. Credit Playbooks are in place to cover a number of potential credit downside scenarios and these are regularly reassessed and updated. Affordability and interest rate sensitivity are tested at origination. Early warning indicators and risk appetite metrics are in place to ensure the Group tracks and takes action, where appropriate • The Group continues to provide early support to customers in difficulty through focused risk management via its Watchlist and Business Support framework. The Group also balances prudent risk appetite with ensuring support for financially viable clients Impairment • The net impairment charge in the first half of