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

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 24
---
 |     |      – |     |     1.6 |     |                     |     |                     |
| Corporate and Institutional Banking                                                                   |       0.2 |     |       6.5 |     |      38.8 |     |      – |     |     0.9 |     |                     |     |                     |
| Commercial Banking                                                                                    |       0.3 |     |       6.1 |     |      22.6 |     |      – |     |     1.1 |     |                     |     |                     |
| Other                                                                                                 |           |     |         – |     |         – |     |      – |     |         |     |                     |     |                     |
| Total                                                                                                 |       0.2 |     |       2.9 |     |      16.5 |     |    3.0 |     |     0.7 |     |                     |     |                     |

1 Contains central fair value hedge accounting adjustments. 2 UK Motor Finance includes £ 178 million relating to provisions against residual values of vehicles subject to finance leases.

| Page 26 of74 |

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

CREDIT RISK (continued) Retail • The Retail portfolio continues to demonstrate resilience and remains well positioned despite ongoing economic uncertainty. Consumers have shown strength in the context of inflationary pressures • Robust risk management remains in place, with strong affordability and indebtedness controls for both new and existing lending and a prudent risk appetite approach. Lending strategies remain under continuous review and have been proactively managed and calibrated to the latest macroeconomic outlook • In UK mortgages, new to arrears and flow to default rates have improved during the first half of the year, including in the second quarter • The unsecured portfolios continue to exhibit broadly stable new to arrears and flow to default trends • New to arrears and flows to default in UK Motor finance have stabilised in the first half of the year versus the modest increases observed in the second half of 2024 • The Retail impairment charge of £ 342 million in the first half of 2025 was higher than the £ 194 million charge for the first half of 2024, which included a larger release from improvements to the Group’s macroeconomic outlook • All existing IFRS 9 staging rules and triggers have been maintained from the 2024 year end. Retail customer related E