[6-K] Lloyds Banking Group plc Current Report (Foreign Issuer)

Rhea-AI Filing Summary

Lloyds Banking Group reported unaudited nine‑month 2025 results. Statutory profit before tax was £4,678 million, down 9% year on year, as higher total income was more than offset by a significant remediation charge and higher impairments. Profit after tax was £3,322 million and basic earnings per share was 4.8 pence (5.3 pence a year ago).

Total income rose to £14,252 million, up 6%. Net interest income increased 7% to £9,808 million on higher interest‑earning assets and a stronger hedge contribution, partially offset by mortgage margin compression and deposit mix headwinds. Operating expenses were £8,955 million, reflecting inflation, investment, and an increased remediation charge related to motor finance commission arrangements.

The Group recognised £912 million of remediation in the period, including an £800 million Q3 charge, taking the motor finance provision to £1,950 million. The impairment charge was £619 million versus £272 million last year. On the balance sheet, total assets were £937,464 million, with customer deposits at £496,722 million. The CET1 ratio was 13.8% (14.2% at year‑end 2024) and risk‑weighted assets were £232.3 billion.

Insights

Banking sector analyst

Solid income growth offset by remediation and higher impairments.

Lloyds Banking Group delivered 9M income growth, with total income at £14,252m (+6%) and net interest income at £9,808m (+7%). However, statutory profit before tax fell to £4,678m (‑9%) due to an £800m Q3 charge within a total £912m remediation related to motor finance commission arrangements, alongside higher operating costs.

Credit quality remained resilient, but the impairment charge rose to £619m from £272m in the prior period, which previously benefited from macro updates. Capital stayed robust with a CET1 ratio of 13.8% versus 14.2% at year‑end 2024 as buybacks, dividends, and higher RWAs (£232.3bn) weighed.

Key watchpoints are the consultation on the motor finance redress approach and any subsequent provisions or recoveries disclosed in future updates. Capital and deposit trends, alongside margin dynamics from mortgage refinancing, will frame near‑term performance.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

23 October 2025

Commission File number 001-15246

LLOYDS BANKING GROUP plc

(Translation of registrant's name into English)

33 Old Broad Street

London

EC2N 1HZ

United Kingdom

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (1)

________.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (7)

________.

This report on Form 6-K shall be deemed incorporated by reference into the company's Registration Statement on Form F-3 (File

No. 333-287829 ) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents

or reports subsequently filed or furnished.

Page 2 of 11

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.

EXPLANATORY NOTE

This report on Form 6-K contains the interim report of Lloyds Banking Group plc, which includes the unaudited

consolidated interim results for the nine months ended 30 September 2025 and is being incorporated by reference

into the Registration Statement with File No. 333-287829 .

Page 3 of 11

CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Nine months ended 30 Sep 2025 £m			Nine months ended 30 Sep 2024 £m
Net interest income	9,808			9,125
Other income 1	4,444			4,352
Total income 1	14,252			13,477
Operating expenses	(8,955)			(8,058)
Impairment	(619)			(272)
Profit before tax	4,678			5,147
Tax expense	(1,356)			(1,370)
Profit after tax	3,322			3,777
Profit attributable to ordinary shareholders	2,892			3,355
Profit attributable to other equity holders	365			376
Profit attributable to non-controlling interests	65			46
Profit after tax	3,322			3,777
Ordinary shares in issue (weighted-average – basic)	60,070m			62,948m
Basic earnings per share	4.8p			5.3 p

1 Net finance expense in respect of insurance and investment contracts, previously shown separately, is now included within

other income as part of total income. The comparative periods are represented on a consistent basis.

Page 4 of 11

CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

	At 30 Sep 2025 £m			At 31 Dec 2024 £m
Assets
Cash and balances at central banks	61,846			62,705
Financial assets at fair value through profit or loss	232,251			215,925
Derivative financial instruments	19,062			24,065
Financial assets at amortised cost	547,799			531,777
Financial assets at fair value through other comprehensive income	37,091			30,690
Other assets	39,415			41,535
Total assets	937,464			906,697
Liabilities
Deposits from banks	8,330			6,158
Customer deposits	496,722			482,745
Repurchase agreements at amortised cost	36,779			37,760
Financial liabilities at fair value through profit or loss	30,046			27,611
Derivative financial instruments	15,932			21,676
Debt securities in issue at amortised cost	77,370			70,834
Liabilities arising from insurance and participating investment contracts	131,559			122,064
Liabilities arising from non-participating investment contracts	56,267			51,228
Other liabilities	27,890			30,644
Subordinated liabilities	10,936			10,089
Total liabilities	891,831			860,809
Total equity	45,633			45,888
Total equity and liabilities	937,464			906,697

CAPITAL METRICS

	At 30 Sep 2025			At 31 Dec 2024
Risk-weighted assets	£232.3bn			£224.6bn
Common equity tier 1 ratio	13.8%			14.2%
Tier 1 capital ratio	15.7%			16.6%
Total capital ratio	18.6%			19.0%

Page 5 of 11

FINANCIAL REVIEW

Income statement

The Group’s statutory profit before tax for the first nine months of 2025 was £ 4,678  million, 9% lower than in the

first nine months of 2024 . This included higher total income, more than offset by a charge for motor finance

commission arrangements in the third quarter and a higher impairment charge. Profit after tax was £ 3,322  million

and earnings per share was 4.8 pence (nine months to 30 September 2024 : £ 3,777  million and 5.3  pence

respectively).

Total income for the nine months of 2025 was £ 14,252  million, an increase of 6% on the same period in 2024 ( nine

months to 30 September 2024 : £ 13,477 million). Net interest income of £ 9,808  million was up 7% on the prior year

( nine months to 30 September 2024 : £ 9,125 million), driven by higher average interest-earning assets and a higher

margin, which benefitted from a growing structural hedge contribution as balances were reinvested in a higher rate

environment, partially offset by mortgage refinancing driving margin compression and deposit churn headwinds .

Other income increased by 2% to £ 4,444  million ( nine months to 30 September 2024 : £ 4,352 million), with higher

other operating income and a higher insurance service result, partially offset by lower net trading income and lower

net fee and commission income. Other operating income increased by 20% to £ 1,639 million ( nine months to 30

September 2024 : £ 1,369  million) as a result of vehicle fleet growth and higher average vehicle rental values in UK

Motor Finance within Retail. The insurance service result benefitted from higher income in the workplace pensions

business and higher general insurance income net of claims. Net trading income benefitted from growth in Equity

Investments and Central Items, which was driven by the Group’s equity and direct investment businesses, with

strong income growth from Lloyds Living and higher income from Lloyds Development Capital. This was more than

offset by the effects of negative market volatility.

Total operating expenses were £ 8,955 million (nine months 30 September 2024: £ 8,058 million). This included a

higher remediation charge relating to motor finance commission arrangements and reflected inflationary pressures,

strategic investment including planned higher severance front-loaded into the first quarter of 2025 and business

growth costs. This was partially offset by cost savings and continued cost discipline. Operating lease depreciation

was higher due to fleet growth, the depreciation of higher value vehicles and declines in used electric car prices .

A remediation charge of £ 912 million was recognised by the Group in the first nine months of 2025 (nine months to

30 September 2024: £ 124  million), including an £800 million charge in the third quarter in relation to the potential

impact of motor finance commission arrangements, bringing the total provision for motor finance to £1,950 million.

The FCA published a consultation on an industry wide motor finance redress scheme on 7 October 2025. This

provides further detail on its proposed redress approach following the Supreme Court judgment handed down on 1

August 2025, in particular the products in scope, situations where it considers inadequate disclosure would give

rise to an unfair relationship, proposed redress methodology, engagement approach and time bar. Based on the

FCA proposals in their current form, the potential impact is at the adverse end of the Group’s range of expected

outcomes.

As previously stated, in establishing the Group’s previous provision of £1,150 million, the Group created a range of

scenarios to address uncertainties on a number of key inputs. The FCA proposals are subject to consultation and

there remain a number of uncertainties. Accordingly, the Group’s approach continues to consider a probability

weighted outcome considering a range of scenarios representing sensitivities to the FCA’s current proposals,

together resulting in the additional charge of £800 million. This reflects the increased likelihood of a higher number

of historical cases, particularly DCA, being eligible for redress, including those dating back to 2007 and also the

likelihood of a higher level of redress than previously anticipated, reflecting the FCA’s proposed redress calculation

approach, which is less closely linked to actual customer loss than anticipated.

The Group remains committed to ensuring customers receive appropriate redress where they suffered loss. The

current FCA proposals remain a consultation. Given that the Group has concerns, including relating to the

approach to unfairness and proposed redress methodology, representations will be made to the FCA. The ultimate

outcome of the motor finance commission issue for the Group may evolve as a result of representations made by

various parties as well as further legal proceedings. However, the total £1,950 million provision, including both

redress and operational costs, represents the Group’s best estimate of the potential impact of the motor finance

issue.

Page 6 of 11

FINANCIAL REVIEW (continued)

Income statement (continued)

Asset quality has remained strong in the first nine months of 2025. The impairment charge was £ 619 million, up

from £ 272 million in the nine months to 30 September 2024 which benefitted from a large credit from

improvements in the Group’s economic outlook. In Commercial Banking, higher charges in the first half of the year

driven by a small number of individual cases were offset by lower expected losses given observed resilient

performance and improved loss expectations for accounts in recoveries. Retail portfolios continued to perform

strongly.

Balance sheet

As at 30 September 2025, total assets were £ 30,767  million higher at £ 937,464  million (31 December 2024 :

£ 906,697  million). Financial assets at amortised cost were £ 16,022  million higher at £ 547,799  million (31 December

2024 : £ 531,777  million) supported by increases in loans and advances to customers. This included growth of £ 8,725

million in UK mortgages and growth across UK Retail unsecured loans, credit cards, UK Motor Finance and the

European retail business totalling £ 6,542 million . Lending balances increased by £ 2,504 million in Commercial

Banking, with higher Institutional balances alongside growth in securitised products, partially offset by repayments

of government-backed lending. The growth in loans and advances to customers was partially offset by a

£ 717  million reduction in loans and advances to banks and a £ 822 million reduction in debt securities.

Financial assets held at fair value through profit or loss increased by £ 16,326 million, with increased holdings in the

Insurance business as a result of market gains on equity investments held to back insurance and investment

contract liabilities and increased reverse repurchase agreements in the banking business.

Derivative financial assets were £ 5,003  million lower at £ 19,062  million (31 December 2024 : £ 24,065 million),

driven by market movements in the period. Financial assets at fair value through other comprehensive income of

£ 37,091 million increased by £6,401 million in the period reflecting increases in liquid asset holdings. Cash and

balances at central banks reduced by £ 859 million to £ 61,846 million (31 December 2024: £ 62,705 million). Other

assets were £ 2,120  million lower , primarily reflecting the disposal of the Group’s bulk annuity business in the

second quarter partially offset by increased settlement balances.

Total liabilities were £ 31,022  million higher at £ 891,831  million (31 December 2024 : £ 860,809  million). Customer

deposits of £ 496,722  million increased in the period by £ 13,977 million. Retail deposits increased £ 4,019 million in

the period, including growth in Retail savings accounts, as a result of net inflows to limited withdrawal and fixed

term deposits given the Group’s strong performance throughout the ISA season, and growth in European retail

balances. This was alongside growth in current accounts, due to strength in customer income and subdued spend.

Commercial Banking deposits were up £ 9,923 million , resulting from growth in targeted sectors . Deposits from

banks increased by £ 2,172 million (31 December 2024: £ 6,158 million), while repurchase agreements at amortised

cost reduced by £ 981 million (31 December 2024: £ 37,760 million).

Financial liabilities at fair value through profit or loss increased by £ 2,435  million to £ 30,046  million at 30

September 2025 due to increased repurchase agreements. Derivative financial liabilities decreased by £ 5,744

million to £ 15,932  million as a result of market movements. Liabilities arising from insurance and investment

contracts increased by £ 14,534 million reflecting the increase in policyholder investments. Other liabilities

decreased by £ 2,754  million and included the effects of the disposal of the Group’s bulk annuity business, partially

offset by increased provisions, primarily driven by the increase in relation to motor finance commission

arrangements. Debt securities in issue increased by £ 6,536  million, with new issuances in the period, while

subordinated liabilities reduced by £ 847 million.

Total equity of £ 45,633 million at 30 September 2025 decreased from £ 45,888 million at 31 December 2024 . Profit

for the period, the unwind of the cash flow hedging reserve and issuance of an AT1 capital instrument in February

2025 was more than offset by the impact of the ongoing share buyback programme, the dividends paid in May

2025 and September 2025, as well as the impact of redemptions of AT1 capital instruments in June 2025 and

September 2025 and a lower pension surplus.

Page 7 of 11

FINANCIAL REVIEW (continued)

Capital

The Group’s common equity tier 1 (CET1) capital ratio reduced to 13.8% at 30 September 2025 (31 December 2024:

14.2% ). Banking business profits for the first nine months of the year, after a provision charge for motor finance

commission arrangements, and the dividends received from the Group’s Insurance business were more than offset

by the recognition of the full capital impact of the ongoing ordinary share buyback programme, the accrual for

foreseeable ordinary dividends, the payment of the interim ordinary dividend in September 2025, distributions on

other equity instruments and an increase in risk-weighted assets.

The Group’s total capital ratio reduced to 18.6% at 30 September 2025 (31 December 2024: 19.0% ). The increase in

CET1 capital and the issuance of new AT1 and tier 2 capital instruments during the period was more than offset by

AT1 and tier 2 instrument calls, other tier 2 movements and the increase in risk-weighted assets. The MREL ratio

reduced to 31.2% at 30 September 2025 (31 December 2024: 32.2% ) with the increase in other eligible liabilities

more than offset by the reduction in total capital resources after adjustments and the increase in risk-weighted

assets.

Risk-weighted assets increased by £7,625 million to £232,257 million at 30 September 2025 (31 December 2024:

£224,632 million ). This reflects the impact of strong lending growth and other movements, partially offset through

continued optimisation activity.

The Group’s UK leverage ratio reduced to 5.2% at 30 September 2025 (31 December 2024: 5.5% ), reflecting the

reduction in tier 1 capital and an increase in the leverage exposure measure. The latter primarily reflects increases

across loans and advances and other assets, due in part to strong lending growth, in addition to an increase in off-

balance sheet items.

Page 8 of 11

ADDITIONAL FINANCIAL INFORMATION

1. Basis of presentation

This release covers the results of Lloyds Banking Group plc together with its subsidiaries (the Group) for the nine

months ended 30 September 2025 .

The Group’s Q3 2025 Interim Pillar 3 Disclosures can be found at: www.lloydsbankinggroup.com/investors/

financial-downloads.html.

Accounting policies

The accounting policies are consistent with those applied by the Group in its 2024 Annual Report on Form 20-F.

2. Loans and advances to customers and expected credit loss allowance

At 30 September 2025	Stage 1 £m			Stage 2 £m			Stage 3 £m			POCI £m			Total £m			Stage 2 as % of total			Stage 3 as % of total
Loans and advances to customers
UK mortgages	282,315			29,903			3,990			5,533			321,741			9.3			1.2
Credit cards	14,628			2,471			269			–			17,368			14.2			1.5
UK unsecured loans and overdrafts	10,345			1,417			191			–			11,953			11.9			1.6
UK Motor Finance	14,283			2,544			148			–			16,975			15.0			0.9
Other	20,804			379			158			–			21,341			1.8			0.7
Retail	342,375			36,714			4,756			5,533			389,378			9.4			1.2
Business and Commercial Banking	25,663			2,520			1,030			–			29,213			8.6			3.5
Corporate and Institutional Banking	58,410			2,546			824			–			61,780			4.1			1.3
Commercial Banking	84,073			5,066			1,854			–			90,993			5.6			2.0
Other 1	264			–			–			–			264			–			–
Total gross lending	426,712			41,780			6,610			5,533			480,635			8.7			1.4
Customer related ECL allowance (drawn and undrawn)
UK mortgages	49			221			305			165			740
Credit cards	226			286			121			–			633
UK unsecured loans and overdrafts	183			232			105			–			520
UK Motor Finance 2	198			132			84			–			414
Other	18			9			36			–			63
Retail	674			880			651			165			2,370
Business and Commercial Banking	94			184			126			–			404
Corporate and Institutional Banking	102			118			316			–			536
Commercial Banking	196			302			442			–			940
Other	–			–			–			–			–
Total	870			1,182			1,093			165			3,310
Customer related ECL allowance (drawn and undrawn) as a percentage of loans and advances to customers
	Stage 1 %			Stage 2 %			Stage 3 %			POCI %			Total %
UK mortgages	–			0.7			7.6			3.0			0.2
Credit cards	1.5			11.6			45.0			–			3.6
UK unsecured loans and overdrafts	1.8			16.4			55.0			–			4.4
UK Motor Finance	1.4			5.2			56.8			–			2.4
Other	0.1			2.4			22.8			–			0.3
Retail	0.2			2.4			13.7			3.0			0.6
Business and Commercial Banking	0.4			7.3			12.2			–			1.4
Corporate and Institutional Banking	0.2			4.6			38.3			–			0.9
Commercial Banking	0.2			6.0			23.8			–			1.0
Other	–			–			–			–			–
Total	0.2			2.8			16.5			3.0			0.7

1 Contains central fair value hedge accounting adjustments.

2 UK Motor Finance includes £ 223 million relating to provisions against residual values of vehicles subject to finance leases.

Page 9 of 11

ADDITIONAL FINANCIAL INFORMATION (continued)

3. Total ECL allowance by scenario

The following table shows the Group’s ECL for the probability-weighted, upside, base case, downside and severe

downside scenarios. As at 31 December 2024, the severe downside scenario incorporated adjustments made to UK

Bank Rate and Consumer Price Index (CPI) inflation paths which, as at 30 September 2025, have been removed.

	Probability- weighted £m				Upside £m			Base case £m			Downside £m			Severe downside £m
At 30 September 2025		3,329			2,517			2,913			3,808			5,573
At 31 December 2024		3,481			2,467			3,036			3,988			6,338

4. UK economic assumptions

Base case and MES economic assumptions

The Group’s base case economic scenario has been updated to reflect ongoing geopolitical developments and

changes in domestic economic policy. The Group’s updated base case scenario has the following conditioning

assumptions. First, global conflicts do not lead to major discontinuities in commodity prices or global trade.

Second, the US effective tariff rate is maintained at prevailing levels pending a switch to a sector-based tariff

framework. Third, UK fiscal policy acts to restore a margin of headroom against the current fiscal rules.

Based on these assumptions and incorporating the economic data published in the second quarter of 2025, the

Group’s base case scenario is for a slow expansion in gross domestic product (GDP) and a further rise in the

unemployment rate alongside small gains in residential and commercial property prices. With underlying

inflationary pressures expected to recede slowly, modest reductions in UK Bank Rate are expected to continue in

2026, reaching a ‘neutral’ policy stance around the middle of the year. Risks around this base case economic view

lie in both directions and are largely captured by the generation of alternative economic scenarios.

The Group has taken into account the latest available information at the reporting date in defining its base case

scenario and generating alternative economic scenarios. The scenarios include forecasts for key variables as at the

third quarter of 2025. Actual data for this period, or restatements of past data, may have since emerged prior to

publication and have not been included.

The Group’s approach to generating alternative economic scenarios is set out in detail in note 21 to the financial

statements for the year ended 31 December 2024, found in the Group’s 2024 Annual Report on Form 20-F. As at

30 September 2025, the non-modelled adjustments previously applied to UK Bank Rate and CPI inflation in the

severe downside scenario have been removed. This is because the incremental ECL impact is no longer considered

sufficiently material to justify their application. Accordingly, its removal has had no material impact on ECL.

UK economic assumptions – base case scenario by quarter

Key quarterly assumptions made by the Group in the base case scenario are shown below. GDP growth is

presented quarter-on-quarter. House price growth, commercial real estate price growth and CPI inflation are

presented year-on-year, i.e. from the equivalent quarter in the previous year. Unemployment rate and UK Bank

Rate are presented as at the end of each quarter.

At 30 September 2025	First quarter 2025 %	Second quarter 2025 %	Third quarter 2025 %	Fourth quarter 2025 %	First quarter 2026 %	Second quarter 2026 %	Third quarter 2026 %	Fourth quarter 2026 %
Gross domestic product growth	0.7	0.3	0.2	0.1	0.2	0.3	0.3	0.4
Unemployment rate	4.5	4.7	4.9	5.0	5.0	5.0	4.9	4.9
House price growth	2.9	2.7	1.6	0.8	1.4	1.9	2.2	2.4
Commercial real estate price growth	2.5	2.6	2.6	1.5	1.0	0.8	1.0	0.7
UK Bank Rate	4.50	4.25	4.00	4.00	3.75	3.75	3.50	3.50
CPI inflation	2.8	3.5	3.9	3.8	3.3	3.0	2.9	2.5

Page 10 of 11

ADDITIONAL FINANCIAL INFORMATION (continued)

4. UK economic assumptions (continued)

UK economic assumptions – scenarios by year

Key annual assumptions made by the Group are shown below. GDP growth and CPI inflation are presented as an

annual change, house price growth and commercial real estate price growth are presented as the growth in the

respective indices within the period. Unemployment rate and UK Bank Rate are averages for the period.

At 30 September 2025	2025 %	2026 %	2027 %	2028 %	2029 %	2025 - 2029 average %
Upside
Gross domestic product growth	1.4	1.9	1.9	1.6	1.5	1.6
Unemployment rate	4.6	3.7	3.2	3.1	3.1	3.6
House price growth	1.1	4.8	7.0	6.3	5.5	4.9
Commercial real estate price growth	2.7	7.5	3.7	2.4	1.4	3.5
UK Bank Rate	4.19	4.30	4.72	4.95	5.12	4.66
CPI inflation	3.5	2.9	2.6	2.9	3.0	3.0
Base case
Gross domestic product growth	1.3	1.0	1.5	1.5	1.5	1.4
Unemployment rate	4.8	5.0	4.7	4.5	4.4	4.7
House price growth	0.8	2.4	1.7	2.2	3.2	2.1
Commercial real estate price growth	1.5	0.7	1.3	1.2	0.9	1.1
UK Bank Rate	4.19	3.63	3.50	3.50	3.50	3.66
CPI inflation	3.5	2.9	2.3	2.3	2.3	2.7
Downside
Gross domestic product growth	1.2	(1.2)	0.0	1.2	1.5	0.6
Unemployment rate	4.9	6.9	7.7	7.4	7.0	6.8
House price growth	0.5	(0.5)	(6.4)	(5.8)	(2.0)	(2.9)
Commercial real estate price growth	0.5	(8.9)	(3.4)	(1.9)	(1.9)	(3.2)
UK Bank Rate	4.19	2.37	1.03	0.69	0.48	1.75
CPI inflation	3.5	2.9	2.0	1.4	1.0	2.2
Severe downside
Gross domestic product growth	1.0	(3.1)	(0.9)	1.0	1.4	(0.1)
Unemployment rate	5.1	9.2	10.4	10.0	9.4	8.8
House price growth	0.0	(2.4)	(13.5)	(12.0)	(6.6)	(7.0)
Commercial real estate price growth	(1.8)	(18.8)	(8.7)	(6.2)	(4.9)	(8.3)
UK Bank Rate	4.19	1.25	0.12	0.04	0.01	1.12
CPI inflation	3.5	2.9	1.5	0.4	(0.3)	1.6
Probability-weighted
Gross domestic product growth	1.3	0.2	0.9	1.4	1.5	1.1
Unemployment rate	4.8	5.6	5.7	5.5	5.3	5.4
House price growth	0.7	1.8	(0.6)	(0.4)	1.4	0.6
Commercial real estate price growth	1.2	(2.1)	(0.4)	(0.1)	(0.3)	(0.3)
UK Bank Rate	4.19	3.21	2.79	2.75	2.73	3.13
CPI inflation	3.5	2.9	2.2	2.0	1.8	2.5

Page 11 of 11

SIGNATURE

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 authorised.

	LLOYDS BANKING GROUP plc
	By:	/s/ William Chalmers
	Name:	William Chalmers
	Title:	Chief Financial Officer
	Dated:	23 October 2025

FAQ

What was LYG’s profit before tax for the nine months ended 30 September 2025?

Profit before tax was £4,678 million, down 9% year on year.

How did Lloyds Banking Group’s income perform in 9M 2025?

Total income rose to £14,252 million (+6%), with net interest income at £9,808 million (+7%).

What remediation related to motor finance did LYG recognize?

LYG recognized £912 million in remediation, including an £800 million Q3 charge; the motor finance provision totals £1,950 million.

What were Lloyds’ credit impairments in 9M 2025?

The impairment charge was £619 million, higher than £272 million in the prior year period.

What is LYG’s CET1 capital ratio and RWAs?

The CET1 ratio was 13.8% and risk‑weighted assets were £232.3 billion at 30 September 2025.

How did customer deposits and total assets change?

Customer deposits were £496,722 million and total assets were £937,464 million, both higher versus year‑end 2024.

What was basic EPS for the period?

Basic earnings per share were 4.8 pence, compared to 5.3 pence a year earlier.