Company: LLOBF
Filing Date: 2025-10-23
Form Type: 6-K
Source: 0001654954-25-012079
Chunk: 10

Company: Lloyds Banking Group plc
Filing Date: 2025-10-23
Form: 6-K
Chunk 10
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 reduced slightly to £3.5 billion at 30 September 2025 (31 December 2024: £3.7 billion). The uplift from the base case to probability-weighted ECL is £0.4 billion (31 December 2024: £0.4 billion). The ECL allowance continues to include a £50 million judgemental adjustment taken in the first half of the year in respect of the global tariff and geo-political disruption risks to specific drivers across various corporate sectors not reflected in broad macroeconomic model drivers.

#### Capital
The Group’s CET1 capital ratio at 30 September 2025 was 13.8% (31 December 2024: 13.5% pro forma). Capital generation during the first nine months of the year was 110 basis points (141 basis points excluding the charge for motor finance commission arrangements). This reflected strong banking build and the £150 million interim dividend received from the Insurance business, partially offset by risk-weighted asset increases and the charge for motor finance. The impact of the interim ordinary dividend paid and the foreseeable ordinary dividend accrual equated to 74 basis points. The third quarter capital build of 24 basis points (55 basis points excluding the charge for motor finance) was driven by strong banking build, complemented by optimisation and the removal of temporary risk-weighted assets related to hedging activity, offset by the charge for motor finance. The Group now expects capital generation in 2025 to be c.145 basis points (c.175 basis points excluding the motor finance charge in the third quarter).

Risk-weighted assets increased by £7.7 billion to £232.3 billion at 30 September 2025 (31 December 2024: £224.6 billion). This reflects the impact of strong lending growth and other movements, partially offset through continued optimisation activity. In the third quarter, risk-weighted assets increased by £0.9 billion following lending growth and other movements, partially offset by optimisation and the removal of the temporary risk-weighted assets related to hedging activity. While no Retail secured CRD IV increases were recognised during the first nine months of the year, the Group continues to expect further uplifts to be recognised against performing exposures in respect of CRD IV secured assets, subject to finalisation with the PRA.

The PRA provided an update to the Group’s Pillar 2A CET1 capital requirement during the third quarter, with the requirement reducing slightly to c.1.4% of risk-weighted