SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16a
of the Securities Exchange Act of 1934
02
December 2025
LLOYDS BANKING GROUP plc
(Translation
of registrant's name into English)
5th Floor
25 Gresham Street
London
EC2V 7HN
United Kingdom
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F..X.. Form 40-F
Index
to Exhibits
Item
No.
1 Regulatory News Service Announcement, 02 December
2025
re: BoE
Stress Test Passed
2 December 2025
LLOYDS BANKING GROUP COMFORTABLY PASSES
BANK OF ENGLAND STRESS TEST
Lloyds Banking Group (the Group), together with six other financial
institutions in the UK, has been subject to the 2025 Bank Capital
Stress Test (BCST), conducted by the Bank of England (BoE). The
full set of results have been published this morning, on the BoE's
website, as part of its Financial Stability Report.
The Group is pleased to note that it has comfortably passed the
stress test and given this strong performance, the Group is not
required to take any capital actions. The BoE calculated the
Group's stressed CET1 ratio after the application of management
actions as 10.9% and its stressed leverage ratio as 4.6%. Despite
the severity of the stress test scenario, and without the
conversion of the Group's AT1 securities into equity, the Group
significantly exceeded the capital and leverage minimum
requirements of 5.9% and 3.3% respectively.
The 2025 BCST scenario was designed to test the resilience of the
UK banking system under a severe global aggregate supply shock,
which leads to deep recessions across the world and escalation of
geopolitical tensions. The BoE stated at the outset of the exercise
that the focus of this hypothetical scenario was to ensure that
banks were able to absorb rather than amplify shocks and continue
to lend to UK households and businesses. The scenario was more
severe than the last global financial crisis and combined rapidly
rising interest rates and unemployment, in conjunction with
significant falls in property prices and GDP. In addition to these
economic factors, and in line with previous years, the stress
scenario also reflected other risks such as conduct events,
alongside a traded risk scenario. Clearly since the date of this
stress test (conducted with a balance sheet date of 31 December
2024) we have taken a significant further provision for the
potential impact of Motor Finance.
The strong performance and indeed continued strengthening of the
stressed performance of the Group reflects the Group's prudent
balance sheet management and strong capital position (having
reported a pro-forma CET1 ratio of 13.5% and a UK leverage ratio of
5.5%, at 31 December 2024). The Group continues to be strongly
capital generative as highlighted in our recent Q3
results.
Lloyds Banking Group also notes the Financial Policy Committee's
(FPC's) capital review and will assess the implications for
the Group and update as appropriate
Further details
Details of the BoE's approach to the stress test and the detailed
results in relation to all participating financial institutions are
available from the BoE's website.
-END-
For further information:
Investor Relations
Douglas
Radcliffe
+44 (0)20 7356 1571
Group Investor Relations Director
douglas.radcliffe@lloydsbanking.com
Corporate Affairs
Matt Smith
+44 (0)77 8835 2487
Head of Media Relations
matt.smith@lloydsbanking.com
FORWARD LOOKING STATEMENTS
This document contains certain forward-looking statements within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, and section 27A of the US Securities Act of 1933,
as amended, with respect to the business, strategy, plans and/or
results of Lloyds Banking Group plc together with its subsidiaries
(the Group) and its current goals and expectations. Statements that
are not historical or current facts, including statements about the
Group's or its directors' and/or management's beliefs and
expectations, are forward-looking statements. Words such as,
without limitation, 'believes', 'achieves', 'anticipates',
'estimates', 'expects', 'targets', 'should', 'intends', 'aims',
'projects', 'plans', 'potential', 'will', 'would', 'could',
'considered', 'likely', 'may', 'seek', 'estimate', 'probability',
'goal', 'objective', 'deliver', 'endeavour', 'prospects',
'optimistic' and similar expressions or variations on these
expressions are intended to identify forward-looking statements.
These statements concern or may affect future matters, including
but 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; the Group's ESG
targets and/or commitments; statements of plans, objectives or
goals of the Group or its management and other statements that are
not historical fact and statements of assumptions underlying 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. Factors that
could cause actual business, strategy, targets, plans and/or
results (including but not limited to the payment of dividends) to
differ materially from forward-looking statements include, but are
not limited to: general economic and business conditions in the UK
and internationally (including in relation to tariffs); imposed and
threatened tariffs and changes to global trade policies; acts of
hostility or terrorism and responses to those acts, or other such
events; geopolitical unpredictability; the war between Russia and
Ukraine; the escalation of conflicts in the Middle East; the
tensions between China and Taiwan; political instability including
as a result of any UK general election; market related risks,
trends and developments; changes in client and consumer behaviour
and demand; exposure to counterparty risk; the ability to access
sufficient sources of capital, liquidity and funding when required;
changes to the Group's credit ratings; fluctuations in interest
rates, inflation, exchange rates, stock markets and currencies;
volatility in credit markets; volatility in the price of the
Group's securities; natural pandemic and other disasters; risks
concerning borrower and counterparty credit quality; risks
affecting insurance business and defined benefit pension schemes;
changes in laws, regulations, practices and accounting standards or
taxation; changes to regulatory capital or liquidity requirements
and similar contingencies; the policies and actions of governmental
or regulatory authorities or courts together with any resulting
impact on the future structure of the Group; risks associated with
the Group's compliance with a wide range of laws and regulations;
assessment related to resolution planning requirements; risks
related to regulatory actions which may be taken in the event of a
bank or Group failure; exposure to legal, regulatory or competition
proceedings, investigations or complaints; failure to comply with
anti-money laundering, counter terrorist financing, anti-bribery
and sanctions regulations; failure to prevent or detect any illegal
or improper activities; operational risks including risks as a
result of the failure of third party suppliers; conduct risk;
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; technological
failure; inadequate or failed internal or external processes or
systems; risks relating to ESG matters, such as climate change (and
achieving climate change ambitions) and decarbonisation, including
the Group's ability along with the government and other
stakeholders to measure, manage and mitigate the impacts of climate
change effectively, and human rights issues; the impact of
competitive conditions; failure to attract, retain and develop high
calibre talent; the ability to achieve strategic objectives; the
ability to derive cost savings and other benefits including, but
without limitation, as a result of any acquisitions, disposals and
other strategic transactions; inability to capture accurately the
expected value from acquisitions; assumptions and estimates that
form the basis of the Group's financial statements; and potential
changes in dividend policy. A number of these influences and
factors are beyond the Group's control. Please refer to the latest
Annual Report on Form 20-F filed by Lloyds Banking Group plc with
the US Securities and Exchange Commission (the SEC), which is
available on the SEC's website at www.sec.gov, for a discussion of
certain factors and risks. Lloyds Banking Group plc may also make
or disclose written and/or oral forward-looking statements in other
written materials and in oral statements made by the directors,
officers or employees of Lloyds Banking Group plc to third parties,
including financial analysts. Except as required by any applicable
law or regulation, the forward-looking statements contained in this
document are made as of today's date, and the Group expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained in
this document whether as a result of new information, future events
or otherwise. The information, statements and opinions contained in
this document do not constitute a public offer under any applicable
law or an offer to sell any securities or financial instruments or
any advice or recommendation with respect to such securities or
financial instruments.
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
LLOYDS
BANKING GROUP plc
(Registrant)
By: Douglas
Radcliffe
Name: Douglas
Radcliffe
Title: Group
Investor Relations Director
Date:
02 December 2025
