Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 37

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 37
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 of the UK leverage ratio exposure measure. In addition, CET1 capital cannot be used to meet both MREL and capital or leverage buffers.

#### Leverage minimum requirements
The Group is currently subject to the following minimum requirements under the UK Leverage Ratio Framework:

● A minimum tier 1 leverage ratio requirement of 3.25% of the total leverage exposure measure

● A countercyclical leverage buffer (CCLB) which is currently 0.6% of the total leverage exposure measure

● An additional leverage ratio buffer (ALRB) of 0.7% of the total leverage exposure measure applies to the RFB sub-group, which equates to 0.6% at Group level

At least 75% of the 3.25% minimum leverage ratio requirement as well as 100% of all regulatory leverage buffers must be met with CET1 capital.

#### Stress testing
The Group undertakes a wide-ranging programme of stress testing, providing a comprehensive view of the potential impacts arising from the risks to which the Group and its key legal entities are exposed. One of the most important uses of stress testing is to assess the resilience of the operational and strategic plans of the Group and its legal entities to adverse economic conditions and other key vulnerabilities. As part of this programme the Group is participating in the Bank of England 2025 Bank Capital Stress Test. The scenario tests a severe negative global aggregate supply shock, leading to deep recessions globally and in the UK. In the scenario, GDP falls 5%, unemployment and inflation rise, and central banks increase interest rates (peak of 8%). The Bank of England will publish the results of the exercise in the fourth quarter of 2025.

CAPITAL RISK (continued)

#### Capital and MREL resources
An analysis of the Group's capital position and MREL resources as at 30 June 2025 is presented in the following table. 31 December 2024 reflects the application of the transitional arrangements for IFRS 9.

|                                                                     | At 30 Jun 
      2025 
        £m |     | At 31 Dec 
      2024 
        £m |
| Common equity tier 1: instruments and reserves                      |           |     |           |
| Share capital and share premium account                             |    24,784 |     |    24,782 |
| Banking retained earnings1                                          |    19,443 |     |    19,582 |
| Banking other reserves1                                             |     3