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2024 Results Lloyds Banking Group 20 th February 2025 1 Q3 2025 Interim Management Statement Lloyds Banking Group 23 October 2025
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Lloyds Banking Group 2 Purpose Helping Britain Prosper Continued strategic delivery for customers and wider stakeholders Robust financial performance, with strong capital generation 2025 guidance improved excluding Q3 motor finance charge; confident in 2026 Continuing to deliver; confident in our outlook 2Lloyds Banking Group
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Lloyds Banking Group 3 Comprehensive offering: c.£17bn AuA, >300 advisors, 60k clients July 2025: Partnership with Aberdeen delivered industry-first tokenised assets use case Continued strategic execution reinforces competitive advantage and supports value creation Co-chair of UK Finance project delivering GB Tokenised Deposits (GBTD) Full acquisition of Schroders Personal Wealth Leading in digital assets Compelling rationale: Differentiated, integrated banking and investment proposition Re-branding to Lloyds Wealth and scaling: To >3m mass affluent and >4m workplace clients Further updates to follow in our Technology, Digital and AI investor seminar on 6 November Continued strategic progress
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Lloyds Banking Group 4 Financial performance (£m) Robust financial performance • YTD stat PAT £3.3bn; RoTE 11.9% (14.6% excl. motor provision) • Income momentum: YTD net income £13.6bn up 6% YoY; Q3 £4.6bn, up 3% QoQ • Cost discipline: YTD operating costs £7.2bn, up 3% YoY • Remediation £912m (incl. £800m for motor provision) • Strong asset quality: YTD impairment £618m, 18bps AQR • Growth in TNAV per share to 55.0p, up 2.6p YTD, up 0.5p in Q3 • Strong YTD capital generation 110bps (141 bps excl. motor) • CET1 ratio 13.8% vs Q2 2025 % Q3 2025 YoY % Q3 2024 YTD Q3 2025 YTD 33,451 69,569 10,106 Net interest income 31,557 94,164 4,526 Other income (3) (365) (8) (994) (1,075) Operating lease depreciation 34,643 612,739 13,557 Net income 1(2,302) (3) (6,992) (7,176) Operating costs (875) (124) (912) Remediation (35) (3,177) (14) (7,116) (8,088) Total costs incl. remediation (32) 1,466 (3) 5,623 5,469 Underlying profit before impairment (32) (176) (273) (618) Impairment charge (36) 1,290 (9) 5,350 4,851 Underlying profit (45) 778 (12) 3,777 3,322 Statutory profit after tax 2bp 3.06% 10bp 2.94% 3.04% Net interest margin (8.0)pp 7.5% (2.1)pp14.0% 11.9% Return on tangible equity (1.1)p 1.0p (0.5)p5.3p 4.8p Earnings per share 0.5p55.0p 2.5p52.5p 55.0p TNAV per share 0pp13.8% (0.5)pp 14.3% 13.8% CET1 ratio
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Lloyds Banking Group 5 Continued strength in customer franchise 1.1 0.4 0.1 0.4 1.6 3.1 (0.3) 1.2 2.4 (0.9) Q3 lending change (£bn) Q3 deposit change (£bn) Retail +£5.1bn/+1% Commercial +£1.3bn/+1% Retail +£0.3bn/+0% Commercial +£2.4bn/+1% • Lending £477.1bn, up £6.1bn in Q3; up £18bn / 4% YTD o Mortgages up £3.1bn QoQ o Continued growth in Cards, Loans, Motor, and Europe o Commercial up £1.3bn, net of £0.3bn CBILS/BBLS repayments • Deposits £496.7bn, up £2.8bn in Q3; up £14bn / 3% YTD o Retail up £0.3bn QoQ with PCA growth vs fixed savings outflows, reflecting post ISA season pricing decisions o Commercial up £2.4bn; growth in CIB and BCB • IP&I open book AuA £204bn; £3.3bn net new money YTD Corporate and Institutional Banking (CIB) Business and Commercial Banking (BCB) Retail current a/c Retail savings 2 Commercial Banking deposits Unsecured loans Europe and other 1 Motor Finance Mortgages Credit cards 1– Includes Europe, Overdrafts and Wealth. 2 – Includes Retail savings and Wealth.
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Lloyds Banking Group 6 • YTD NII £10.1bn, up 6% YoY • Q3 NII £3.5bn, up 7% YoY, up 3% QoQ o NIM 306bps, up 2bps QoQ, driven by hedge tailwind o Hedge income of £1.4bn; notional unchanged o Non-banking NII charge £136m • Q3 AIEAs £465.5bn, up £5.5bn QoQ given growth in Retail lending • Now expect 2025 NII to be c.£13.6bn Sustained growth in NII Average interest earning assets (£bn) Net interest income and banking net interest margin (£bn, bps) 304 306 Q2 2025 Structural hedge Mortgages Deposits Funding, capital & other Q3 2025 £3.36 bn £3.45 bn 460.0 465.5 Q2 2025 Mortgages Unsecured & Motor Europe and Retail Other Commercial Banking Q3 2025 0.9 0.8 2.6 1.2 4 (2) (1) 1
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Lloyds Banking Group 7 1,299 1,286 1,340 1,394 1,430 1,433 1,452 1,517 1,557 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 • YTD OOI £4.5bn, up 9% YoY • Q3 OOI £1.6bn, up 9% YoY, up 3% QoQ; broad based momentum o Strength in Motor, General Insurance and LBG Equity Investments • Continued strategic progress, including build and scaling of new customer propositions, supporting OOI • Full acquisition of SPW to support OOI growth going forward • Q3 operating lease depreciation £365m, up in line with fleet growth Broad based momentum in OOI Other income (£m) + 9% YoY +9% 2-year CAGR Illustrative strategic OOI progress Retail Launched Lloyds Ultra credit card Expand used leasing offering in Tusker Commercial Improved breadth of Markets capabilities Scaling cash management and payments proposition IP&I Expanded Ready-Made Investments to wider market Growing wealth offering following SPW acquisition LBG Equity Investments >4k rented homes in Lloyds Living Pipeline to c.7.5k homes exchanged by end 2025 Recent developments Upcoming plans
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Lloyds Banking Group 8 Ongoing cost discipline 7.0 7.2 (0.4) 0.2 0.2 0.2 Q3 2024 YTD Cost savings Pay & inflation Investment, depreciation & strategic opex Other Q3 2025 YTD Cost:income ratio (%) +3% (+2% excl. severance) • YTD operating costs £7.2bn, up 3% YoY o Excluding increased severance taken YTD, up 2% YoY o Includes impact of NIC changes, equivalent to c.£0.1bn per annum pro-rated • Q3 operating costs of £2.3bn, down 1% QoQ • Q3 cost:income 68.4%; 49.6% excl. remediation • Continue to expect 2025 operating costs of c.£9.7bn, excluding Q4 impact of SPW • Remediation charge £875m in Q3, including £800m for motor finance Operating costs (£bn) Cost:income ratio excl. remediation Remediation 52.7 56.0 58.1 51.4 49.6 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 53.4 73.7 58.1 52.2 68.4
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Lloyds Banking Group 9 Motor finance commissions update Motor finance provision (£m) FCA timeline Previous provision New additional provision Total provision: 1,950 7 Oct 2025 FCA announcement and consultation paper on industry-wide redress scheme for motor finance Early 2026 FCA policy statement and final scheme rules expected 18 Nov 2025 Deadline for comments on FCA’s redress scheme proposals Later in 2026 Consumers start to receive compensation 1,150 800 • £800m provision in Q3 2025 reflects FCA consultation proposals announced 7 October o Proposals represent adverse end of previously modelled scenarios o More cases eligible for redress than expected reflecting broader unfairness presumption and 2007 time bar o Likelihood of a higher level of redress than anticipated given proposed redress calculation methodology • Total motor finance provision now £1,950m, including estimate for operational costs and potential redress • Group intends to contribute to consultation on FCA’s proposals, including approach to unfairness and redress methodology
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Lloyds Banking Group 10 Strong asset quality • Strong asset quality, reflecting prudent lending and healthy customer behaviours o Arrears remain low and stable across our portfolios • YTD impairment charge £618m, AQR 18bps • Q3 impairment charge £176m, AQR 15bps o Pre-MES AQR 12bps, including some one-off benefits primarily from model calibrations o £36m MES charge given lower HPI assumptions • Stock of ECL £3.5bn, c.£0.4bn above base case • Now expect FY 2025 AQR c.20bps QoQ £m Q3 2025 YoY £m Q3 2024 YTD Q3 2025 YTD 37 140 6597 591 Charge (credit) pre updated MES 1 21 201 (35) 592 627 Retail 15 (61) 52 16 (36) Commercial Banking 1- (11) (11) - Other (80) 36 (351) (324) 27 Updated economic outlook (36) 42 (227) (269) (42) Retail 56 (6) (124) (55) 69 Commercial Banking (100) - -- - Central adjustment (43) 176 (345) 273 618 Total impairment charge/(credit) Impairment (£m) Retail new to arrears (3 month rolling average, %) Loans Mortgages Credit cards Motor Finance 1– Charges before the impact of changes to the economic outlook. 0.00% 0.25% 0.50% 0.75% 1.00% Q4 19 Q2 20 Q4 20 Q2 21 Q4 21 Q2 22 Q4 22 Q2 23 Q4 23 Q2 24 Q4 24 Q2 25 Q3 25
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Lloyds Banking Group 11 52.4 55.0 4.9 (5.7) 1.1 1.7 0.6 Q4 2024 Attributable profit Distributions Share count Cash flow hedge reserve Pensions and other Q3 2025 Strengthening RoTE excl. motor, alongside TNAV growth QoQ %Q3 2025 YoY % Q3 2024 YTD Q3 2025 YTD (36) 1,290 (9) 5,350 4,851 Underlying profit (40) (7) 24 (21) (16) Restructuring (195) (109) 14 (182) (157)Volatility and other items (41) 1,174 (9) 5,147 4,678 Statutory profit before tax (31) (396) 1(1,370) (1,356)Tax expense (45) 778 (12) 3,777 3,322 Statutory profit after tax (8.0)pp 7.5% (2.1)pp 14.0% 11.9% Return on tangible equity • YTD RoTE 11.9% (14.6% excl. motor provision); Q3 7.5% (15.5% excl. motor provision) • Q3 volatility charge £109m; negative insurance volatility impact, alongside usual fair value unwind • TNAV per share 55.0p, up 0.5p in Q3 (up 1.6p excl. motor provision) o Growth driven by profits, share count and cash flow hedge reserve • Expect material TNAV per share growth from profits, cash flow hedge reserve unwind and share count reduction • Now expect FY 2025 RoTE to be c.12% (c.14% excl. motor provision) Tangible net asset value per share (pence) +2.6p Statutory profit (£m)
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Lloyds Banking Group 12 2024 Banking build Motor RWAs Other Ordinary Q3 2025 Strong capital generation Market risk & other Common equity tier 1 ratio (%, bps) 3 224.6 232.3 2024 Q3 2025 - Credit / calibrations CRD IV 1 Optimisation Underlying lending • RWAs £232.3bn, up £7.7bn YTD, up £0.9bn QoQ o Strength in lending partly offset by optimisation • Strong YTD capital generation: 110bps (141bps excl. motor) o 24bps in Q3 (55bps excl. motor), from banking build, optimisation and reversal of £1.2bn temporary RWAs • Now expect FY 2025 capital generation of c.145bps (c.175bps excl. motor provision) • CET1 ratio 13.8% o Continue to expect to pay down to c.13% by end 2026 Risk weighted assets (£bn) 2.3 (3.4) (0.5) 9.3 13.5% 182 5 (46) (74) Capital build 110bps; (141bps excl. motor charge) 13.8% 2 1– Retail secured CRD IV increases, performing exposures. 2 – Shown on a pro forma basis. 3 – Other includes share-based payments and market volatility. & insurance dividend (31) provision dividend
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Lloyds Banking Group 13 Continuing to deliver; confident in our outlook 2025 Capital distribution Progressive and sustainable ordinary dividend 2026 Operating costs <50% CIR Asset quality RoTE >15% Capital generation >200bps CET1 ratio target Pay down to c.13.0% Net interest income 2025 (excl. motor) Continued strategic delivery for customers and wider stakeholders Robust financial performance, with strong capital generation 2025 guidance improved excluding Q3 motor finance charge; confident in 2026 c.£9.7bn excl. SPW 1 c.20bps (from c.25bps) c.14% (from c.13.5%) c.175bps c.£13.6bn (from c.£13.5bn) c.12% c.145bps c.20bps (from c.25bps) c.£13.6bn (from c.£13.5bn) c.£9.7bn excl. SPW 1 1– Modestly >£9.7bn given Q4 impact of SPW.
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Q&A
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Appendix
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Lloyds Banking Group 16 Quarterly P&L and key ratios Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 (£m) 3,444 3,317 3,184 3,154 3,231 3,276 3,294 3,361 3,451 Net interest income 1,299 1,286 1,340 1,394 1,430 1,433 1,452 1,517 1,557 Other income (229) (371) (283) (396) (315) (331) (355) (355) (365) Operating lease depreciation 4,514 4,232 4,241 4,152 4,346 4,378 4,391 4,523 4,643 Net income (2,241) (2,486) (2,402) (2,298) (2,292) (2,450) (2,550) (2,324) (2,302) Operating costs (64) (541) (25) (70) (29) (775) - (37) (875) Remediation (2,305) (3,027) (2,427) (2,368) (2,321) (3,225) (2,550) (2,361) (3,177) Total costs 2,209 1,205 1,814 1,784 2,025 1,153 1,841 2,162 1,466 Underlying profit before impairment (187) 541 (57) (44) (172) (160) (309) (133) (176) Impairment (charge)/credit 2,022 1,746 1,757 1,740 1,853 993 1,532 2,029 1,290 Underlying profit (44) (85) (12) (3) (6) (19) (4) (5) (7) Restructuring (120) 114 (117) (41) (24) (150) (11) (37) (109 ) Volatility and other items 1,858 1,775 1,628 1,696 1,823 824 1,517 1,987 1,174 Statutory profit before tax 1,420 1,234 1,215 1,229 1,333 700 1,134 1,410 778 Statutory profit after tax 3.08% 2.98% 2.95% 2.93% 2.95% 2.97% 3.03% 3.04% 3.06% Net interest margin £453.0bn £452.8bn £449.1bn £449.4bn £451.1bn £455.1bn £455.5bn £460.0bn £465.5bn Average interest earning assets 51.1% 71.5% 57.2% 57.0% 53.4% 73.7% 58.1% 52.2% 68.4% Cost:income ratio 0.17% (0.47)% 0.06% 0.05% 0.15% 0.14% 0.27% 0.11% 0.15% Asset quality ratio 16.9% 13.9% 13.3% 13.6% 15.2% 7.1% 12.6% 15.5% 7.5% Return on tangible equity 47.2p 50.8p 51.2p 49.6p 52.5p 52.4p 54.4p 54.5p 55.0p Tangible net asset value per share
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Lloyds Banking Group 17 Ave. 25-29 2029 2028 2027 2026 2025 Measure (%) ECL (£m) Scenario 1.6 1.5 1.6 1.9 1.9 1.4 GDP 2,656 Upside (30%) 3.6 3.1 3.1 3.2 3.7 4.6 Unemployment rate 4.9 5.5 6.3 7.0 4.8 1.1 HPI growth 3.5 1.4 2.4 3.7 7.5 2.7 CRE price growth 4.66 5.12 4.95 4.72 4.30 4.19 UK Bank Rate 3.0 3.0 2.9 2.6 2.9 3.5 CPI inflation 1.4 1.5 1.5 1.5 1.0 1.3 GDP 3,052 Base case (30%) 4.7 4.4 4.5 4.7 5.0 4.8 Unemployment rate 2.1 3.2 2.2 1.7 2.4 0.8 HPI growth 1.1 0.9 1.2 1.3 0.7 1.5 CRE price growth 3.66 3.50 3.50 3.50 3.63 4.19 UK Bank Rate 2.7 2.3 2.3 2.3 2.9 3.5 CPI inflation 0.6 1.5 1.2 - (1.2) 1.2 GDP 3,947 Downside (30%) 6.8 7.0 7.4 7.7 6.9 4.9 Unemployment rate (2.9) (2.0) (5.8) (6.4) (0.5) 0.5 HPI growth (3.2) (1.9) (1.9) (3.4) (8.9) 0.5 CRE price growth 1.75 0.48 0.69 1.03 2.37 4.19 UK Bank Rate 2.2 1.0 1.4 2.0 2.9 3.5 CPI inflation (0.1) 1.4 1.0 (0.9) (3.1) 1.0 GDP 5,712 Severe downside (10%) 8.8 9.4 10.0 10.4 9.2 5.1 Unemployment rate (7.0) (6.6) (12.0) (13.5) (2.4) -HPI growth (8.3) (4.9) (6.2) (8.7) (18.8) (1.8) CRE price growth 1.12 0.01 0.04 0.12 1.25 4.19 UK Bank Rate 1.6 (0.3) 0.4 1.5 2.9 3.5 CPI inflation 3,468 Probability weighted Updated economics scenarios
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Lloyds Banking Group 18 Douglas Radcliffe Group Investor Relations Director +44 (0)20 7356 1571 Douglas.Radcliffe@lloydsbanking.com Nora Thoden Director, Investor Relations – ESG +44 (0)20 7356 2334 Nora.Thoden@lloydsbanking.com Rohith Chandra-Rajan Director, Investor Relations +44 (0)7353 885 690 Rohith.Chandra-Rajan@lloydsbanking.com Sarah Robson Senior Manager, Investor Relations +44 (0)7494 513 983 Sarah.Robson2@lloydsbanking.com Tom Grantham Senior Manager, Investor Relations +44 (0)7851 440 091 Thomas.Grantham@lloydsbanking.com Investor Relations contacts
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Lloyds Banking Group 19 Disclaimer Important notice The information, statements, views and opinions containedin this document and accompanying discussion (“this Presentation”) are for informational and reference purposes only. This Presentation has been provided by the Group (defined below). This Presentation does not purport to be comprehensive nor render any form or type of advice (“Advice”). No responsibility, liability or obligation (whether in tort, contract or otherwise) is accepted by the Group or any of its directors, officers, employees, agents or advisers (each an “Identified Person”) as to or in relation to this Presentation (including the fairness, accuracy, completeness or sufficiency thereof) or any other written or oral information made available (“Supplementary Information”) or any errors contained therein or omissions therefrom, and any such liability is expressly excluded to the extent permitted by law. No representations or warranties, express or implied, are given by any Identified Person as to, and no reliance should beplaced on, the accuracy or completeness of any information contained in this Presentation and/or any Supplementary Information. For the avoidance of any doubt,this Presentation and/or Supplementary Information is notintended to, nor does it, constitute or form part of any Advice or promotional material for services offered by any Group entity. No Identified Person undertakes, or is under any obligation, to provide any additional information, update, revise or supplement this Presentation and/or Supplementary Information or to remedy any inaccuracies in or omissions from this Presentation and/or Supplementary Information. 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 BankingGroup plc together with its subsidiaries (the Group) and itscurrent 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’sfuture financial position, including profit attributableto shareholders, provisions, economic profit, dividends, capital structure, portfolios, net interest margin, capitalratios, 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 historicalfact 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: generaleconomic 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 othersuch 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 inclient 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 orcourts 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 andother 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 captureaccurately 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 financialanalysts. 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 ofnew 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.