Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 27

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 27
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and actions LBG takes could result in its CET1 Ratio falling.

<div align='center'>S-27</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, the growth of LBG’s business and LBG’s
future earnings, dividend payments, regulatory changes (including changes to definitions and calculations of regulatory capital, including
CET1 Capital and Risk Weighted Assets (each of which shall be calculated by LBG on a fully loaded, consolidated basis and such calculation
shall be binding on the Trustee and on the person in whose name the Additional Tier 1 Security is registered)), actions that LBG is required
to take at the direction of the Relevant Regulator, and the Group’s ability to manage Risk Weighted Assets in both its ongoing businesses
and those which it may seek to exit. In addition, the Group has capital resources and risk weighted assets denominated in foreign currencies,
and changes in foreign exchange rates will result in changes in the pounds sterling equivalent value of foreign currency denominated capital
resources and risk weighted assets. Actions that LBG takes could also affect its CET1 Ratio, including causing it to decline. LBG has
no obligation to increase its CET1 Capital, reduce its Risk Weighted Assets or otherwise operate its business in such a