Derivative assets An analysis of derivative assets is given in note 17. The Group reduces exposure to credit risk by using master netting agreements and by obtaining collateral in the form of cash or highly liquid securities. In respect of the Group’s net credit risk relating to derivative assets of £9,268 million (2017: £12,785 million), cash collateral of £6,039 million (2017: £5,419 million) was held and a further 213 million was due from OECD banks (2017: £275 million).
(D) Collateral held as security for financial assets A general description of collateral held as security in respect of financial instruments is provided on page 116. The Group holds collateral against loans and advances and irrevocable loan commitments; qualitative and, where appropriate, quantitative information is provided in respect of this collateral below. Collateral held as security for financial assets at fair value through profit or loss and for derivative assets is also shown below.
At 31 December 2018 70 per cent to 80 per cent 38,865 1,704 176 1,864 42,609 80 per cent to 90 per cent 26,353 837 90 1,024 28,304 90 per cent to 100 per cent 5,136 154 33 349 5,672
O ther inform ation Lloyds Banking Group Annual Report and Accounts 2018 265
Financial liabilities at fair value through profit or loss The fair value of collateral pledged in respect of repurchase transactions, accounted for as secured borrowing, where the secured party is permitted by contract or custom to repledge was £28,438 million (2017: £48,765 million).
Financial assets at fair value through profit or loss 5,837 6,622
Securitisations and covered bonds In addition to the assets detailed above, the Group also holds assets that are encumbered through the Group’s asset‑backed conduits and its securitisation and covered bond programmes. Further details of these assets are provided in notes 30 and 48.
Debt securities held at amortised cost 7 – – 521 – – 2,262 2,448 5,238
Payments in respect of payment protection insurance provision (2,104) (1,657) (2,200)
(D) Analysis of cash and cash equivalents as shown in the balance sheet 2018 £m 2017 £m 2016 £m
Less: amounts with a maturity of three months or more (3,169) (3,193) (11,052)
Acquisition of and additional investment in joint ventures 23 30 20
Net cash outflow from acquisitions in the year 49 1,923 20 1 Upon acquisition in 2017, the funding of MBNA was assumed by Lloyds Bank plc.
Liabilities arising from non‑participating investment contracts 15,447 − − − 15,447
The following table summarises the impact of the transitional adjustment on the Group’s loss allowances at 1 January 2018: IAS 39 allowance at 31 December 2017 £m
There were no impacts on the Group’s loss allowances as a result of changes in the measurement category of financial assets at 1 January 2018.
The key drivers for the provision movements from IAS 39 to IFRS 9 for the Group are as follows: – Latent risk: under IAS 39 provisions were held against losses that had been incurred at the balance sheet date but had either not been specifically identified or not been adequately captured in the provisioning models. Under IFRS 9 assets which had not defaulted are allocated to Stages 1 and 2 and an appropriate expected credit loss allowance made. – 12‑month expected loss: IFRS 9 requires that for financial assets where there has been no significant increase in credit risk since origination (Stage 1) a loss allowance equivalent to 12‑month expected credit losses should be held. Under IAS 39 these balances would not be specifically provided against although a provision for latent risk would be held. – Lifetime expected credit loss: financial assets that have experienced a significant increase in credit risk since initial recognition (Stage 2) and credit impaired assets (Stage 3) are required to carry a lifetime expected credit loss allowance. Under IAS 39, Stage 2 assets were treated as performing and consequently no specific impairment provision was held, although a proportion of the provision held against latent risks was held against these assets. Assets treated as impaired under IAS 39 carried a provision reducing the carrying value to the estimated recoverable amount. – Undrawn commitments: IFRS 9 requires a loss allowance to be held against undrawn lending commitments. Previously, an impairment provision would only have been held in the event that the commitment was irrevocable and a loss event had occurred. – Multiple economic scenarios: IFRS 9 requires that the expected credit loss allowance should reflect an unbiased range of possible future economic outcomes. This was not required under IAS 39.
Financial assets at fair value through profit or loss 162,878 14,447 (1,139) 13,308 (178) 176,008
Loans and advances to banks 6,611 (2,274) (90) (2,364) – 4,247
Remeasurements There has been a pre‑tax charge of £229 million (£207 million net of tax) arising from the reclassification of financial assets and liabilities to fair value through profit or loss and fair value through other comprehensive income and consequent remeasurement to fair value.
The Group assesses, at each balance sheet date, whether there is objective evidence that an available‑for‑sale financial asset is impaired. In addition to the criteria for financial assets accounted for at amortised cost set out above, this assessment involves reviewing the current financial circumstances (including creditworthiness) and future prospects of the issuer, assessing the future cash flows expected to be realised and, in the case of equity shares, considering whether there has been a significant or prolonged decline in the fair value of the asset below its cost. If an impairment loss has been incurred, the cumulative loss measured as the difference between the acquisition cost (net of any principal repayment and amortisation) and the current fair value, less any impairment loss on that asset previously recognised, is reclassified from equity to the income statement.
Classification and measurement On initial recognition, financial assets are classified into fair value through profit or loss, available for sale financial assets, held to maturity investments or loans and receivables. Financial liabilities are measured at amortised cost, except for trading liabilities and other financial liabilities designated at fair value through profit or loss on initial recognition which are held at fair value. Financial instruments are classified at fair value through profit or loss where they are trading securities or where they are designated at fair value through profit or loss by management. Derivatives are carried at fair value. Loans and receivables include loans and advances to banks and customers and are accounted for at amortised cost using the effective interest method. Debt securities and equity shares that are not classified as trading securities, at fair value through profit or loss, held‑to‑maturity investments or as loans and receivables are classified as available‑for‑sale financial assets and are recognised in the balance sheet at their fair value, inclusive of transaction costs. Gains and losses arising from changes in fair value are recognised directly in other comprehensive income, until the financial asset is either sold, becomes impaired or matures, at which time the cumulative gain or loss previously recognised in other comprehensive income is recognised in the income statement. Interest calculated using the effective interest method is recognised in the income statement
IFRS 17 Insurance Contracts IFRS 17 replaces IFRS 4 ‘Insurance Contracts’ and is currently effective for annual periods beginning on or after 1 January 2021 although the International Accounting Standards Board have proposed delaying implementation until 1 January 2022.
Capital and reserves: Non‑current liabilities: Debt securities in issue 6 20,394 10,886 10,886
Other employee award schemes – – – 168 168 – 168
Issue of ordinary shares 63 – – – 63 – 63
Movement in treasury shares – – – (277) (277) – (277)
Issue of ordinary shares 162 – – – 162 – 162
Cash and cash equivalents at end of year 57 272 42
The Company adopted IFRS 9 from 1 January 2018. In accordance with the transition requirements of IFRS 9, comparative information for 2017 has not been restated and transitional adjustments have been accounted for through retained earnings as at 1 January 2018, the date of initial application; and as a result shareholders’ equity reduced by £2 million, due to additional impairment provisions following the implementation of the expected credit loss methodology.
Note 3: Share capital, share premium and other equity instruments Details of the Company’s share capital, share premium account and other equity instruments are as set out in notes 39, 40 and 43 to the consolidated financial statements.
O ther inform ation Lloyds Banking Group Annual Report and Accounts 2018 279
Distributions on other equity instruments, (net of tax) (351) (336) (330)
Other employee award schemes 207 332 168 1 Details of the Company’s dividends are as set out in note 44 to the consolidated financial statements.
As discussed in note 2 to the consolidated financial statements, the Group provides share‑based compensation to employees through a number of schemes; these are all in relation to shares in the Company and the cost of providing those benefits is recharged to the employing companies in the Group.
Details of the subsidiaries and related undertakings are given on pages 289 to 295 and are incorporated by reference.
During 2018, as part of the Group's restructuring to comply with the ring‑fencing regulations, the Scottish Widows Group was transferred into the direct ownership of the Company, having previously been held by the Company's subsidiary, Lloyds Bank plc. The consideration for the transfer was £7,622 million which was funded by a dividend from Lloyds Bank plc of an equal amount, which has been treated as a return of capital. Lloyds Bank plc also made a further return of capital of £2,975 million in 2018, which the Company has used to increase its investment in Lloyds Bank Corporate Markets plc.
Financial assets: Cash and cash equivalents – – – 272 272
Other information Shareholder information 284 Five year financial summary 286 Forward looking statements 287 Abbreviations 288 Alternative performance measures 288 Subsidiaries and related undertakings 289
O ther inform ation Lloyds Banking Group Annual Report and Accounts 2018 283
2 To be published on the Group’s website by 1 July 2019 in accordance with the Capital Requirements (country analysis) Regulations 2013.
Total income, net of insurance claims 18,626 18,659 17,267 17,421 16,399
Profit for the year attributable to ordinary shareholders 3,869 3,042 2,001 466 1,125
Post-tax return on average shareholders’ equity 9.3 7.2 4.9 1.3 2.9
2 Annual dividends comprise both interim and estimated final dividend payments. The total dividend for the year represents the interim dividend paid during the year and the final dividend which is paid and accounted for in the following year.
This Annual Report contains certain forward looking statements with respect to the business, strategy, plans and/or results of Lloyds Banking Group and its current goals and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about Lloyds Banking Group’s or its directors’ and/or management’s beliefs and expectations, are forward looking statements. Words such as ‘believes’, ‘anticipates’, ‘estimates’, ‘expects’, ‘intends’, ‘aims’, ‘potential’, ‘will’, ‘would’, ‘could’, ‘considered’, ‘likely’, ‘estimate’ and variations of these words and similar future or conditional expressions are intended to identify forward looking statements but are not the exclusive means of identifying such statements. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that will or may occur in the future.
Examples of such forward looking statements include, but are not limited to: projections or expectations of the Group’s future financial position including profit attributable to shareholders, provisions, economic profit, dividends, capital structure, portfolios, net interest margin, capital ratios, liquidity, risk-weighted assets (RWAs), expenditures or any other financial items or ratios; litigation, regulatory and governmental investigations; the Group’s future financial performance; the level and extent of future impairments and write-downs; statements of plans, objectives or goals of Lloyds Banking Group or its management including in respect of statements about the future business and economic environments in the UK and elsewhere including, but not limited to, future trends in interest rates, foreign exchange rates, credit and equity market levels and demographic developments; statements about competition, regulation, disposals and consolidation or technological developments in the financial services industry; and statements of assumptions underlying such statements.
Factors that could cause actual business, strategy, plans and/or results (including but not limited to the payment of dividends) to differ materially from forward looking statements made by the Group or on its behalf include, but are not limited to: general economic and business conditions in the UK and internationally; market related trends and developments; fluctuations in interest rates, inflation, exchange rates, stock markets and currencies; the ability to access sufficient sources of capital, liquidity and funding when required; changes to the Group's credit ratings; the ability to derive cost savings and other benefits including, but without limitation as a result of any acquisitions, disposals and other strategic transactions; the ability to achieve strategic objectives; changing customer behaviour including consumer spending, saving and borrowing habits; changes to borrower or counterparty credit quality; concentration of financial exposure; management and monitoring of conduct risk; instability in the global financial markets, including Eurozone instability, instability as a result of uncertainty surrounding the exit by the UK from the European Union (EU) and as a result of such exit and the potential for other countries to exit the EU or the Eurozone and the impact of any sovereign credit rating downgrade or other sovereign financial issues; technological changes and risks to the security of IT and operational infrastructure, systems, data and information resulting from increased threat of cyber and other attacks; natural, pandemic and other disasters, adverse weather and similar contingencies outside the Group's control; inadequate or failed internal or external processes or systems; acts of war, other acts of hostility, terrorist acts and responses to those acts, geopolitical, pandemic or other such events; risks related to climate change; changes in laws, regulations, practices and accounting standards or taxation, including as a result of the exit by the UK from the EU, or a further possible referendum on Scottish independence; changes to regulatory capital or liquidity requirements and similar contingencies outside the Group's control; the policies, decisions and actions of governmental or regulatory authorities or courts in the UK, the EU, the US or elsewhere including the implementation and interpretation of key legislation and regulation together with any resulting impact on the future structure of the Group; the transition from IBORs to alternative reference rates; the ability to attract and retain senior management and other employees and meet its diversity objectives; actions or omissions by the Group's directors, management or employees including industrial action; changes to the Group's post-retirement defined benefit scheme obligations; the extent of any future impairment charges or write-downs caused by, but not limited to, depressed asset valuations, market disruptions and illiquid markets; the value and effectiveness of any credit protection purchased by the Group; the inability to hedge certain risks economically; the adequacy of loss reserves; the actions of competitors, including non-bank financial services, lending companies and digital innovators and disruptive technologies; and exposure to regulatory or competition scrutiny, legal, regulatory or competition proceedings, investigations or complaints. Please refer to the latest Annual Report on Form 20-F filed with the US Securities and Exchange Commission for a discussion of certain factors and risks together with examples of forward looking statements.
O ther inform ation Lloyds Banking Group Annual Report and Accounts 2018 289
BOS (Shared Appreciation Mortgages) No. 1 plc 4 # BOS (Shared Appreciation Mortgages) No. 2 plc 4 # BOS (Shared Appreciation Mortgages) No. 3 plc 4 # BOS (Shared Appreciation Mortgages) No. 4 plc 4 # BOS (Shared Appreciation Mortgages) No. 5 plc 4 BOS (Shared Appreciation Mortgages) No. 6 plc 4 BOS (USA) Fund Investments Inc. 14 xiii BOS (USA) Inc. 14 BOS Edinburgh No 1 Ltd (In liquidation) 73 BOS Mistral Ltd 2
Carlease Ltd (In liquidation) 1 Cartwright Finance Ltd 2 viii vii # Cashfriday Ltd 9 Cashpoint Ltd 1 Caveminster Ltd 1 CBRail S.A.R.L. 19 Cedar Holdings Ltd 1 Central Mortgage Finance Ltd 12 CF Asset Finance Ltd 2 Chariot Finance Ltd (In liquidation) 13 Chartered Trust (Nominees) Ltd (In liquidation) 13 Charterhall (No. 2) Ltd (In liquidation) 13 Cheltenham & Gloucester plc 12 Chiswell Stockbrokers Ltd (In liquidation) 13 Clerical Medical (Dartford Number 2) Ltd
Halifax Equitable Ltd (In liquidation) 13 Halifax Financial Brokers Ltd 4
Halifax Financial Services (Holdings) Ltd 4 Halifax Financial Services Ltd 4 Halifax General Insurance Services Ltd 4 Halifax Group Ltd 4 Halifax Investment Services Ltd 4 Halifax Leasing (June) Ltd (In liquidation) 13 Halifax Leasing (March No.2) Ltd 1 Halifax Leasing (September) Ltd 1 Halifax Life Ltd 4 Halifax Ltd 4 Halifax Loans Ltd 4 Halifax Mortgage Services (Holdings) Ltd
Intelligent Finance Financial Services Ltd 4 Intelligent Finance Software Ltd 4 International Motors Finance Ltd 2 i ii # Kanaalstraat Funding C.V. 35 * Kanto Leasing Ltd (In liquidation) 13 Katrine Leasing Ltd 36 LB Comhold Ltd (In liquidation) 13 LB Healthcare Trustee Ltd 1 LB Motorent Ltd 1 LB Quest Ltd 1 LB Share Schemes Trustees Ltd 1 LBCF Ltd 9 LBG Brasil Administração LTDA 49 LBG Capital Holdings Ltd 1 ̂ LBG Capital No. 2 Ltd (In liquidation) 13 LBG Capital No. 1 Ltd (In liquidation) 13 LBG Equity Investments Limited 1 ̂ LBI Leasing Ltd 1 LBPB (21 Hill Street) Limited (In liquidation) 13 LDC (Asia) Ltd (In liquidation) 39 LDC (General Partner) Ltd 40 LDC (Managers) Ltd 40 LDC (Nominees) Ltd 40 LDC Carry VIII LP 40 * LDC GP LLP 41 * LDC I LP 41 * LDC II LP 41 * LDC III LP 41 * LDC IV LP 41 * LDC Parallel VIII LP 40 * LDC Parallel (Nominees) Ltd 40 LDC V LP 41 * LDC VI LP 41 * LDC VII LP 41*
Lloyds Bank Insurance Services Ltd 1 Lloyds Bank International Ltd 58 Lloyds Bank Leasing (No. 4) Ltd (In liquidation) 13 Lloyds Bank Leasing (No. 6) Ltd 1 Lloyds Bank Leasing (No. 8) Ltd (In liquidation) 13 Lloyds Bank Leasing Ltd 1 Lloyds Bank Maritime Leasing (No. 8) Ltd
Lloyds Holdings (Jersey) Ltd 58 Lloyds Hypotheken B.V. 55 Lloyds Industrial Leasing Ltd 1 Lloyds International Pty Ltd 8 Lloyds Investment Bonds Ltd (In liquidation) 13 Lloyds Investment Fund Managers Ltd 58 Lloyds Investment Securities No.5 Ltd 1 Lloyds Leasing (North Sea Transport) Ltd 1 Lloyds Leasing Developments Ltd 1 Lloyds Merchant Bank Asia Ltd 31 iv Lloyds Nominees (Guernsey) Ltd 37 Lloyds Offshore Global Services Private Ltd 48 Lloyds Plant Leasing Ltd 1 Lloyds Portfolio Leasing Ltd 1 Lloyds Premises Investments Ltd (In liquidation) 13 Lloyds Project Leasing Ltd 1 Lloyds Property Investment Company No. 3 Ltd
Saleslease Purchase Ltd (In liquidation) 73 Savban Leasing Ltd 1 Scotland International Finance B.V. 21 Scottish Widows (Port Hamilton) Ltd
Addison Social Housing Holdings Ltd 61 ARKLE Finance Trustee Ltd (In liquidation) 62 ARKLE Funding (No. 1) Ltd (In liquidation) 53 ARKLE Holdings Ltd (In liquidation) 53 ARKLE Master Issuer plc (In liquidation) 53 ARKLE PECOH Holdings Ltd (In liquidation) 53 ARKLE PECOH Ltd (In liquidation) 53 Cancara Asset Securitisation Ltd 63 Candide Financing 2007 NHG BV (In liquidation) 64 Candide Financing 2008-1 BV (In liquidation) 64 Candide Financing 2008-2 BV (In liquidation) 64 Candide Financing 2011-1 BV (In liquidation) 64 Cardiff Auto Receivables Securitisation 2018-1 Plc 44 Cardiff Auto Receivables Securitisation Holdings
Clerical Medical Non Sterling Megapark Hold Co BV 66 Clerical Medical Non Sterling Megapark Prop Co SA 67 Credit Card Securitisation Europe Limited 63 Deva Financing Holdings Ltd 44 Deva Financing plc 44 Deva One Limited 63 Deva Three Limited 63 Deva Two Limited 63
Penarth Asset Securitisation Holdings Ltd 44 Penarth Funding 1 Ltd 61 Penarth Funding 2 Ltd 61 Penarth Master Issuer plc 44 Penarth Receivables Trustee Ltd 61 Permanent Funding (No. 1) Ltd 44 Permanent Funding (No. 2) Ltd 44 Permanent Holdings Ltd 44 Permanent Master Issuer plc 44 Permanent Mortgages Trustee Ltd 44 Permanent PECOH Holdings Ltd 44 Permanent PECOH Ltd 44 Salisbury Securities 2015 Ltd 36 Salisbury II Securities 2016 Ltd 61 Salisbury II-A Securities 2017 Limited 61 Sandown 2012-2 Holdings Ltd 44 Sandown 2012-2 plc 44 Sandown Gold 2012-1 Holdings Ltd 44 Sandown Gold 2012-1 plc 44 SARL Coliseum 75 SARL Fonciere De Rives 75 SARL Hiram 75 SAS Compagnie Fonciere De France, 75 SCI Astoria Invest 75 SCI De L’Horloge 75 SCI Equinoxe 75 SCI Mercury Invest 75 SCI Millenium AP1 75 SCI Norli 75 SCI Rambuteau CFF 75 Stichting Candide Financing Holdings 64 Swan Funding 2 Ltd 61 Thistle Investments (AMC) Ltd 44 Thistle Investments (ERM) Ltd 44 Trinity Financing Holdings Ltd 44 Trinity Financing plc 44 Wetherby II Securities 2018 DAC 68 Wetherby Securities 2017 Limited 61 Lloyds Bank Foundation for England & Wales • 77 The Halifax Foundation for Northern Ireland • 15 Lloyds Bank Foundation for the Channel Islands• 77 Bank of Scotland Foundation • 5 MBNA General Foundation • 82
Backhouse (Westbury) JV Ltd 50% C/O DAC Beachcroft LLP, Portwall Place, Portwall Lane, Bristol, BS1 9HS, United Kingdom i Backhouse (Castle Cary) JV Limited 50% DAC Beachcroft LLP, Portwall Place, Portwall Lane, Bristol, BS1 9HS i Bergamot Ventures Ltd 50% 6th Floor 25 Farringdon Street, London, EC4A 4AB ii Blue Bay Travel Group Limited 99% A4 Bellringer Road, Trentham Business Quarter, Stoke-On-Trent, ST4 8GB xx & BoS Mezzanine Partners Fund LP n/a 7 Melville Crescent, Edinburgh, EH3 7JA * Brington North Holdco Ltd 50% 25 Gresham Street, London, EC2V 7HN ~ Caedmon Homes (St Johns Mews) Limited 50% Baldwins Wynyard Park House, Wynyard Avenue, Wynyard, TS22 5TB, United Kingdom i Caedmon Homes Limited 50% Baldwins Wynyard Park House, Wynyard Avenue, Wynyard, TS22 5TB, United Kingdom i Caedmon Homes Kirby Hill Ltd 50% Baldwins Wynyard Park House, Wynyard Avenue, Wynyard, TS22 5TB, United Kingdom i Cardel Group Limited 89.25% 5 The Marquis Business Centre, Royston Road, Baldock, SG7 6XL xx & Castlegate Nexus Limited (in Administration) 99% C/O Deloitte LLP, Four Brindley Place, Birmingham, B1 2HZ, United Kingdom xx & Chester Business Park Management Company Ltd 24% Drake House, Gadbrook Park, Rudheath, Northwich, CW9 7TW, United Kingdom CIPHR Group Ltd 89.25% Abbey Place, 24-28 Easton Street, High Wycombe, HP11 1NT, United Kingdom i & City & General Securities Ltd 100% 10 Upper Berkeley Street, London, W1H 7PE ii & City Living (Midlands) Limited 50% Old Banks Chambers, 582-586 Kingsbury Road, Erdington, Birmingham, B24 9ND i Citysprint (UK) Holdings Ltd 82% Ground Floor, Redcentral, 60 High Street, Redhill, RH1 1SH xx 91.22% xxi & Cleanslate Ashford Limited 50% Chobham Farm, Sandpit Hall Road, Chobham, Surrey, GU24 8 HA i CMS Acquisitions Company Ltd 99% Caisteal Road, Castlecary, Cumbernauld, Glasgow, G88 0FS xx & Cobaco Holdings Ltd 90% Cobaco House, North Florida Road, Haydock Industrial Estate, Merseyside, WA11 9TP i & Connect Managed Holdings Ltd 89% 4th Floor, Chancellor House, 5 Thomas More Square, London, E1W 1YW, United Kingdom xx & 89% xxi
O ther inform ation Lloyds Banking Group Annual Report and Accounts 2018 293
KHL 2017 Limited 84.4% One Eleven, Edmund Street, Birmingham, England, B3 2HJ i 84.4% ii &
SSP Topco Ltd 88.80% 2nd Floor, G Mill, Dean Clough, Halifax, HX3 5AX i & Stewart Milne (Glasgow) Ltd 100% The Mound, Edinburgh, EH1 1YZ, United Kingdom i ~ Stewart Milne (West) Ltd 100% The Mound, Edinburgh, EH1 1YZ, United Kingdom i ~ Stratus (Holdings) Ltd 82.5% 3MC Middlemarch Business Park, Siskin Drive, Coventry, West Midlands, England, CV3 4FJ xx & 82.5% xxi Stroma Group Ltd 99% Unit 4, Pioneer Way, Castleford, West Yorkshire, WF10 5QU xx & Sunshine Unincorporated JV n/a Level 3, 1C Homebush Bay Drive, Rhodes NSW 2138, Australia * Temple Topco Limited 89.25% Market Place, Henley-On-Thames, Oxfordshire, RG9 2AD i & The Exceed Partnership LP n/a Cavendish House, 39-41 Waterloo Street, Birmingham, B2 5PP * The Great Wigmore Partnership (G.P.) Ltd 50% 33 Cavendish Square, London, W1G 0PW The Great Wigmore Partnership n/a 33 Cavendish Square, London, W1G 0PW * The Power Industrial Group Limited (In liquidation) 82.5% Deloitte LLP, 1 City Square, Leeds, LS1 2AL i & 82.5% xx Thistlerow Ltd 50% Radleigh House 1 Golf Road, Clarkston, Glasgow, G76 7HU i Timec 1634 Ltd 89.25% 5 Silverton Court, Cramlington, Northumberland, NE23 7RY, United Kingdom xx & Travellers Cheque Associates Ltd 36% Belgrave House, 76 Buckingham Palace Road, London, SW1W 9AX United House Group Holdings Ltd 81.65% 26 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4AE i & United Living Group Ltd 100% Media House, Azalea Drive, Swanley, Kent, BR8 8HU i & 98.55% xvii Whittington Facilities Limited 100% Third Floor, Broad Quay House, Prince Street, Bristol, BS1 4DJ v Williams Topco Limited 89.25% The Old Post Office, St. Nicholas Street, Newcastle Upon Tyne, United Kingdom, NE1 1RH i & Willoughby (880) Ltd 89.25% IMEX, 575-599 Maxted Road, Hemel Hempstead Industrial Estate, Hemel Hempstead, Herts, HP2 7DX xx & ZWPV Ltd 89.25% Zip World Base Camp, Denbigh Street, Llanrwst, LL26 0LL i &
BNY MELLON INVESTMENTS FUNDS ICVC 10 Insight Global Multi-Strategy Fund 44% Insight Global Absolute Return Fund 74% Newton Multi-Asset Growth Fund 29% Newton UK Opportunities Fund 48% Newton UK Income Fund 32%
HBOS ACTIVELY MANAGED PORTFOLIO FUNDS ICVC 1 Diversified Return Fund 94% Absolute Return Fund 92% Dynamic Return Fund 97%
HBOS PROPERTY INVESTMENT FUNDS ICVC 1 UK Property Fund 43% HLE Active Managed Portfolio Konservativ 42% 18 HLE Active Managed Portfolio Dynamisch 51% 18 HLE Active Managed Portfolio Ausgewogen 57% 18
MULTI MANAGER ICVC 2 Multi Manager UK Equity Growth Fund 81% Multi Manager UK Equity Income Fund 30% Multi Manager UK Equity Focus Fund 20%
Corporate Bond Fund 63% UK Growth Fund 62% Gilt Fund 96% High Income Bond Fund 27% Strategic Income Fund 65% Environmental Investor Fund 70% Ethical Fund 75%
UNIVERSE, THE CMI GLOBAL NETWORK 6 CMIG GA 70 Flexible 100% CMIG GA 80 Flexible 100% CMIG GA 90 Flexible 100% EURO CAUTIOUS 90% European Enhanced Equity 100% CMIG Access 80% 100% Continental Euro Equity 98% UK Equity 75% US Enhanced Equity 88% Japan Enhanced Equity 93% Pacific Enhanced Basin 79% Euro Bond 69% US Bond 94% US Currency Reserve 74% Euro Currency Reserve 99% CMIG Focus Euro Bond 100% US Tracker 28% Euro Tracker 22%
THE TM LEVITAS FUNDS 21 TM Levitas A Fund 34% TM Levitas B Fund 28%
O ther inform ation Lloyds Banking Group Annual Report and Accounts 2018 295
Luxembourg (6) Lemanik Asset Management S.A 106 route d’Arlon, L-8210 Mamer Luxembourg (7) 35a avenue John F. Kennedy, L-1855, Luxembourg (8) ABERDEEN ASSET MANAGERS LTD, 1 BREAD STREET, BOW BELLS HOUSE, LONDON
(i) A Ordinary shares (ii) B Ordinary shares (iii) Deferred shares (iv) Preference shares (v) Preferred ordinary shares (vi) Non-voting shares (vii) C Ordinary shares (viii) N Ordinary shares (ix) Callable preference shares (x) Redeemable preference shares (xi) Ordinary limited voting shares (xii) Redeemable ordinary shares (xiii) Common stock (xiv) D Ordinary Shares (xv) E Ordinary Shares (xvi) W Ordinary Shares (xvii) X Ordinary Shares (xviii) Y Ordinary Shares (xix) Z Ordinary Shares (xx) A1 Ordinary Shares (xxi) A2 Ordinary Shares (xxii) A3 Ordinary Shares (xxiii) A3 Preference Shares (xxiv) Z1 Ordinary Shares (xxv) Z2 Ordinary Shares (xxvi) Preferred B Ordinary Shares (xxvii) A4 Ordinary Shares (xxviii) B1 Ordinary Shares (xxix) B2 Ordinary Shares (xxx) C2 Ordinary Shares
(36) 47 Esplanade, St. Helier, Jersey, JE1 0BD (37) Sarnia House, Le Truchot, St. Peter Port, Guernsey, GY1 4EF (38) Unit 2 Spinnaker Court, 1C Becketts Place, Hampton Wick, Kingston Upon Thames,
Surrey, KT1 4EQ, United Kingdom (39) Bank of China, Tower 1, Garden Road Central, Hong Kong (40) 1 Vine Street, London, W1J 0AH (41) 39 Queens Road, Aberdeen, AB15 4ZN (42) Royal Ocean Plaza, Ocean Village, GX11 1AA, Gibraltar (43) 110 St. Vincent Street, Glasgow, G2 4QR (44) 35 Great St. Helen’s, London, EC3A 6AP (45) Charlton Place, Charlton Road, Andover, SP10 1RE (46) 22 Grenville Street, St. Helier, Jersey, JE4 8PX (47) Queensway House, Hilgrove Street, St. Helier, Jersey, JE4 1ES (48) 6/12, Primrose Road, Bangalore , 560025, India (49) Avenida Jurubatuba 73, 8° Andar, Vila Cordeiro, São Paulo, SP, CEP 04583-100, Brazil (50) C/O Ernst & Young Solutions LLP, One Raffles Quay, North Tower, #18-00,
EC2R 7AF (70) 106 Route d'Arlon, Mamer, L-8210, Luxembourg (71) 1 Grant's Row, Lower Mount Street, Dublin 2, Ireland (72) 20 Rue de la Poste, L-2346 Luxembourg (73) EY Atria One, 144 Morrison Street, Edinburgh, EH3 8EB (74) Fifth Floor, 100 Wood Street, London, EC2V 7EX, United Kingdom (75) 8 Avenue Hoche, 75008, Paris, France (76) 1A Heienhaff, Senningerberg, L-1736, Luxembourg (77) Pentagon House, 52-54 Southwark Street, London, SE1 1UN (78) Riverside House, 502 Gorgie Road, Edinburgh, EH11 3AF (79) St William House, Tresillian Terrace, Cardiff, CF10 5BH (80) Drake House, Gadbrook Park, Rudheath, Northwich, CW9 7TW, United Kingdom (81) T he Residency, 7th Floor, 133/1 Residency Road, Bangalore, 560025, India (82) Stansfield House, Chester Business Park, Chester, CH4 9QQ, United Kingdom (83) Glategny Court, Glategny Esplanade, St Peter Port, GY1 3HQ, Guernsey