Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001160106-25-000034
Chunk: 21

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 21
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 central bank claims)            |            5.0% |     |            5.1% |
| Total MREL resources                                      |          72,754 |     |          72,223 |
| MREL leverage ratio                                       |           10.5% |     |           10.7% |

1 Deconsolidation adjustments relate to the deconsolidation of certain Group entities that fall outside the scope of the Group’s regulatory capital consolidation, primarily the Group’s Insurance business. 2 Includes adjustments to exclude lending under the Government’s Bounce Back Loan Scheme (BBLS). Analysis of leverage movements The Group’s UK leverage ratio reduced to 5.4% at 30 June 2025 (31 December 2024: 5.5% ). The increase in the leverage exposure measure primarily reflects increases across loans and advances and other assets, due in part to strong lending growth, and an increase in off-balance sheet items. This was partially offset by a reduction in the measure for securities financing transactions.

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

CREDIT RISK Overview The Group’s portfolios continue to demonstrate resilience amid ongoing macroeconomic uncertainty. The Group maintains a prudent approach to credit risk appetite and risk management, with strong credit origination criteria including evidence of affordability and robust LTVs in the secured portfolios. Asset quality remains robust with stable credit performance during the first half of the year. In UK mortgages, reductions in new to arrears and flows to default have been observed over the period, whilst unsecured portfolios continue to exhibit stable arrears trends. Credit quality also remains stable in Commercial Banking. The Group continues to monitor the impacts of the economic environment carefully through a suite of early warning indicators and governance arrangements that ensure risk mitigating action plans are in place to support customers and protect the Group’s positions. The impairment charge in the first half of 2025 was £ 442 million, up from £ 100 million in the first half of 2024 which benefitted from a large release from improvements to the Group’s economic outlook. The charge for the first half of 2025 includes a small net release from updates in the Group’s macroeconomic outlook of £ 9 million (half-year to 30 June 2024: a release of £ 324 million ), as well as a higher charge in Commercial Banking. The Group’s probability-weighted total expected credit loss (ECL) allowance was