Classification: Public

2021 Results
Presentation
Lloyds Banking Group
Classification: Public

Agenda

Section 1 Introduction Charlie Nunn, Group Chief Executive

Section 2 2021 strategic and William Chalmers, Chief Financial Officer

financial progress

Section 3 Strategy update Charlie Nunn, Group Chief Executive

William Chalmers, Chief Financial Officer

Section 4 Q&A Charlie Nunn, Group Chief Executive

William Chalmers, Chief Financial Officer

2
Classification: Public

Introduction

3
Classification: Public

2021 strategic
and financial
progress
4
Classification: Public

Solid financial performance in 2021

• Solid net income, up 9%, NIM 254bps

• Maintained focus on operating costs, 1%

£15.8bn 56.7% higher YoY including variable pay

Net income up 9% Cost:income ratio up • Strong asset quality, £1.2bn net

vs 2020 1.4pp vs 2020 impairment credit
• Statutory profit after tax of £5.9bn
Continued franchise balance sheet growth
13.8% 57.5p
•
• Strong capital build of 210bps, pro forma
RoTE up 11.5pp TNAV up 5.2p vs 2020
vs 2020 CET1 ratio 16.3%1
• Shareholder returns £3.4bn, equivalent to
c.10% of market capitalisation2

16.3% £3.4bn − Total ordinary dividend 2p per share

Pro forma CET1 ratio Total capital returns − Share buyback £2bn
up 0.1pp vs 20201

1 – The pro forma CET1 ratio as at 31/12/2021 reflects both the insurance dividend paid in Q1 2022 and the impact of the announced ordinary share buyback programme. Does not include the impact 5
of capital headwinds on 01/01/2022. 2 – Market capitalisation as at close of business on 31/12/2021.
Classification: Public

Helping Britain Recover

Performance against commitments for 20211

>93k >£16bn
Start-ups and small businesses Lent to first-time homebuyers Group’s focus areas for 2021
supported vs target 75k2 vs target £10bn
• Recovery and growth of businesses
• Financial health of households

>£3bn c.£5bn • Affordable and quality homes

New funding to social Discounted green finance
• Transition to a low carbon economy
housing vs target £1.5bn delivered; funding available
expanded from £3bn to £5bn3 • Inclusive society and organisation

8.8% 37.7%
Senior roles held by Black, Senior roles held by female
Asian and minority ethnic colleagues; 2025 target 50%
colleagues; 2025 target 13%
1 – See the 2021 ESG Report for a full list of 2021 commitments and performance. 2 – Provided to customers through online support, business advice and business banking accounts; not-for-profit enterprises 6
comprise approximately 10% of this figure. 3 – c.£5bn includes Clean Growth Finance Initiative and Commercial Real Estate Green Lending since 2016; expansion of funding available took place in 2021.
Classification: Public

Progress against Strategic Review 2021

Our customer ambitions Enhanced capabilities

Mobile app releases in 2021 vs 2020

+69 Maintained record all-channel NPS (FY21) 1.8x (target 2x)

Corporate clients onboarded to new cash

£16bn Net growth in open mortgage book in 2021 3x management & payments platform (target 3x)

Customer accounts safely migrated to pilot

>£7bn Net new open book AuA in Insurance & Wealth c.120k of new bank architecture

Growth in SME products originated via a Reduction in office space in 2021

c.60% digital source (target 50%) c.9% (target 8%)

Execution in 2021 provides a strong foundation for our new strategy

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Classification: Public

Solid net interest income performance

Average interest-earning assets (AIEAs)

(£bn)
+2%
15 • NII £11.2bn, up 4% on 2020, benefitting
(3)
1 445
from increased AIEAs and stronger NIM
(3)
435
− 2021 AIEAs £445bn, up £10bn on 2020
− Full year NIM 254bps, 257bps in Q4, up
2bps on Q3
2020 Mortgages Unsecured Commercial Other
2021
& Motor Banking1 • Positive impact from rising rates despite
Net interest income (NII) and banking net interest margin (NIM) ongoing mortgage pricing pressure
(£bn, bps)
£10.8bn £11.2bn • Illustrative c.£200m additional NII in year 1
+2bps for a 25bps parallel increase in rates2
4 254
252
5 • Low single-digit percentage growth in
2 AIEAs expected in 2022
(5)

(4) • 2022 NIM expected to be above 260bps

2020 Structural Retail Commercial Customer Funding & 2021

hedge lending lending1 deposits capital

1 – Retail Business Banking included within Commercial for reporting purposes. 2 – Illustrative interest rate sensitivity; based on the assumptions shown in the appendix on slide 57. 8
Classification: Public

Strong mortgage growth with tighter new business margins

Mortgage book
(Book size £bn, Gross margin %1)

1.82% 1.86% 1.84% • Mortgage balances up £13.7bn to

305 308
YoY £307.5bn, open book growth £16bn
294
• Back book c.£64bn, Q4 YoY attrition c.16%
115 132 139 +21% • 2021 new business2 c.£90bn
Front book

− 2021 front book maturities at c.150bps

83 87
− Average completion margin c.160bps
91 +10%
(2020: c.170bps), c.115bps in Q43
21 17 16 (25)%
• 2022-24 Group NIM impacted by maturities
Back book

51 47 42
(16)%
of high-yielding 2020-21 business
25 24 22
• Mortgage lending remains attractive from
H2 2020 H1 2021 H2 2021
a returns and economic value perspective
Fixed acquisition Fixed retention
Front book other Back book SVR
Back book base rate tracker

1 – Gross margin is gross customer receivables, less short-term funding costs; references SONIA. Chart uses rounded inputs. 2 – Includes retention of existing customers on new deals. 9
3 – Total completion margins include new business and product transfers and is the difference between the customer rate and the relevant funding rate.
Classification: Public

Other lending balances stabilised in H2 with robust margins

UK consumer finance1
(Book size £bn, Gross margin %2)
• UK consumer finance £0.8bn lower in year
but stabilising in H2
H2 2021 14 8 6 8 36 6.59%

− Credit card balances reduced £0.2bn in

H1 2021 14 8 6 8 36 6.70%
2021, up £0.5bn in H2
H2 2020 14 8 6 9 37 6.72%
− UK Motor Finance down £0.7bn in 2021
Cards Loans Motor (used) Motor (new)3 driven by industrywide supply constraints
• Commercial Banking £2.8bn lower in 2021,
margin supported by pricing actions
Commercial Banking4
(Book size £bn, Gross margin %2)
− Government-backed lending scheme
balances down £1.2bn
H2 2021 39 3 46 4 92 2.35%

− Underlying business reduced £1.6bn

H1 2021 40 4 45 4 93 2.34%
given higher levels of liquidity, likely
H2 2020 41 4 46 4 95 2.24% persisting into 2022

SME4 Mid corporates C&I Other

1 – Excluding overdrafts. 2 – Gross margin is gross customer receivables, less short-term funding costs; references SONIA. Chart uses rounded inputs. 3 – Includes Fleet, Stocking and Lex Finance. 10
4 – Includes Retail Business Banking.
Classification: Public

Continued significant deposit franchise growth

Increase in customer deposits1,2

(Book size £bn, Gross margin %)

0.18% 0.15% 0.16%

474 476 YoY

451 16 15
15 +11%
15 16
14
116 (5)%
123
125 • Significant £25.6bn increase in deposits in
2021, down £2.8bn in Q4
Continued inflows to the Group’s trusted
Relationship

165 +7% •
161
154 brands, up c.£65bn since 2019

50 52 +8% • Commercial deposits lower given portfolio

48
optimisation, particularly in Q4
97 107 112 +14%

H2 2020 H1 2021 H2 2021

Retail current accounts Commercial current accounts

Retail relationships Commercial deposits
Wealth Other

1 – Retail Business Banking shown in Commercial. 2 – Gross margin is gross customer payables, less short-term funding costs; references SONIA and includes structural hedge income. Chart uses 11
rounded inputs.
Classification: Public

Continued franchise growth building hedge sustainability

Hedged balances1
(£bn)
190 210 225 240
240
215 • Structural hedge approved capacity of
180 186
65
70 £240bn, up £30bn in 2021
60 62
Structural
hedge 90 94 120 140
• Prudent management of structural hedge
30 30 30 30
− c.£65bn deposit growth since year end
521 523 2019 vs £55bn increase in capacity
484 494

− c.£30bn maturities in 2022 give flexibility

318 312
306
Balance 310
• Nominal balance of £240bn with c.3.5 year
sheet
notional weighted-average duration
131 145 157 164
• Expect 2022 hedge income ahead of 2021
43 43 46 47
and a modest increase in 2023 and 2024
H1 2020 H2 2020 H1 2021 H2 2021

Shareholders’ equity Current accounts Other customer deposits

Hedge capacity

1 – The external sterling structural hedge notional is managed as a portfolio, split shown is indicative. 12
Classification: Public

Other income showing signs of recovery

Other income • Other income of £5.1bn in 2021, with

(£bn) £1.3bn in Q4
− Retail seeing recovering customer
activity levels, offset by reduced Lex fleet
1.3 1.3 1.3
1.2 1.2
1.0 1.1 1.1 − Broadly stable performance overall in
Commercial Banking year on year
− Increased activity across life, pensions
Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 and investments excluding bulk annuities

Divisional other income − Q4 benefits from c.£80m insurance

(£m) assumption and methodology changes
H2 2021 924 600 772 347 2,643 − Equity Investments, including LDC,
c.£100m above typical run rate in 2021
H1 2021 812 677 660 268 2,417
• Continued recovery expected, dependent
on customer activity, supported by
H2 2020 814 634 397 209 2,054
ongoing and new investments
Retail Commercial Banking Insurance & Wealth Equity Investments and Central Items
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Classification: Public

Maintained focus on efficiency

Operating costs • Sustained cost discipline; cost:income ratio

(£m)
+1% of 56.7% and operating costs of c.£7.6bn
253 7,630
7,585
(24) • Remediation of £1.3bn includes £790m for
92
HBOS Reading, £600m in Q4 reflecting
(12)
(264) estimated future cost
• From Q1, restructuring costs, except M&A-
2020 Cost savings Pay & Investment Variable Other 2021
related costs, to be shown above the line
inflation & depr’n pay
− Equivalent to £504m in 2021
2021 operating costs – revised basis
(£m)
− Fraud charges also to be reported in
+c.£685m operating costs (previously impairment)
c.180 c.8,300
504

7,630
• 2022 operating costs expected to be
c.£8.8bn on new basis (2021: c.£8.3bn)
− Stable before increased investment and
new Embark and Citra businesses
2021 Below to Non-lending 2021
current above the fraud charges revised
basis line switch and other basis 14
Classification: Public

Strong asset quality and low new to arrears

Q4 YoY
Impairment (£m) 2021 2021 2020 change • £1.2bn net impairment credit for 2021,
Charges pre-updated MES1 557 146 1,610 (1,053)
£467m credit in Q4, both given improved
Retail 887 154 1,359 (472)
macroeconomic outlook
Commercial Banking (324) (6) 252 (576) • Sustained low levels of new to arrears and
Other (6) (2) (1) (5) underlying charges below pre-Covid levels
Coronavirus impacted
restructuring cases2
(65) (12) 403 (468) • Stock of ECL reduced to £4.5bn, c.£0.3bn
higher than year end 2019
Updated economic outlook (1,699) (601) 2,234 (3,933)
Retail (1,172) (482) 1,025 (2,197) • Covid management judgements c.£0.8bn,
Commercial Banking (527) (119) 809 (1,336)
including £0.4bn central adjustment3
Other – – 400 (400) • 2022 asset quality ratio expected to be
Total impairment (credit) / charge (1,207) (467) 4,247 (5,454) c.20bps

1 – Multiple economic scenarios. 2 – Further (credits) / charges on existing material cases in restructuring at the end of 2019 where coronavirus has directly hampered the recovery strategy. 15
3 – £400m central adjustment held for Covid-related risks to the Group’s base case assumptions.
Classification: Public

Statutory profit after tax of £5.9bn

YoY
(£m) 2021 Q4 2020 change
• Restructuring costs £956m; £570m in Q4
Underlying profit 8,040 1,785 2,193
Restructuring costs (956) (570) (521) (83)% − c.£400m software write-off in Q4 given
Severance costs (109) (18) (156) 30%
new technology investment
£504m above the

Property transformation (123) (51) (146) 16% − M&A-related costs and volatility continue
line from Q1

Technology R&D (155) (51) (61) to be reported below the line from Q1
Regulatory programmes (60) (14) (42) (43)%
• Positive insurance and banking volatility,
Other (57) (18) (46) (24)%
more than offset by fair value unwind
M&A/Integration/Write-off (452) (418) (70)
Volatility and other items (182) (247) (361) 50%
• Tax expense £1,017m including c.£1.0bn
credit from change in tax rate in Q2
PPI – – (85)
Statutory profit before tax 6,902 968 1,226 • 2021 RoTE 13.8%, or 11.4% ex. tax benefit,
Tax (expense) / credit (1,017) (548) 161 benefitting from net impairment credit
Statutory profit after tax 5,885 420 1,387
• 2022 RoTE expected to be c.10%

Return on tangible equity 13.8% 2.9% 2.3% 11.5pp

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Classification: Public

Effective RWA management

Risk-weighted assets • RWAs down £6.7bn in 2021, down £4.7bn

(£bn) in Q4, driven by Commercial optimisation
£(6.7)bn

202.7
1.8 • Limited credit migration to date, supported
(0.4)
by high quality book and house prices
196.0
(8.1) • 1 January 2022 pro forma RWAs £212bn,
given net regulatory inflation of c.£16bn

Year end Underlying Credit Commercial Year end

• Continue to expect 2022 closing RWAs
2020 lending migration / Banking 2021 c.£210bn
calibrations optimisation
/ other

17
Classification: Public

Strong capital build enabling total distribution of £3.4bn

• Total capital return equivalent to £3.4bn,

c.10% of market cap

Common equity tier 1 ratio − Final ordinary dividend of 1.33p per

(%, bps) share; total ordinary dividend of 2p
Capital build 210bps (Q4 51bps)
− Share buyback of £2bn
58
210 16
• Pro forma CET 1 ratio 16.3% reflecting
(19) (55)
strong capital build of 210bps, including
16.2 16.3
(10)
£300m insurance dividend
(185)

77bps dividends + • Headwinds of c.230bps on 1 January 2022

108bps buyback pro forma given regulatory changes
Year end Banking Insurance Impairm’t Underlying Fixed Distrib- In-year Year end − 14% pro forma CET1, post-headwinds
2020 build pre- dividend net of RWAs pension -utions variable 2021
reported impairm’t pro forma trans. relief contrib’s pension pro forma2
credit release and other1 contrib’s − Remain ahead of ongoing target of
c.12.5% plus a c.1% management buffer
• Expect resilient capital build in 2022,
excluding headwinds
1 – Includes 41bps in respect of the Group’s fixed contributions to its defined benefit pension schemes. Also includes the capital impact of funding the acquisition of Embark, net of other small movements.
2 – Year end 2021 pro forma CET1 ratio reflects both the insurance dividend paid in Q1 2022 and the impact of the announced ordinary share buyback programme (neither of which impacted 2020). Does 18
not include the impact of capital headwinds on 01/01/2022.
Classification: Public

Strategy
update

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Key messages

Higher, more diversified, revenues

c.£0.7bn additional revenues from strategic initiatives in 2024; c.£1.5bn with a 50:50 NII/OOI split by 2026

Maintaining strong focus on cost discipline

Transformation
plan Flat costs in 2024 vs. 2022, with savings offsetting cost pressures; cost:income ratio <50% by 2026

Enabling our strategy through our people, technology and data

Destination employer with purpose of Helping Britain Prosper; investing in end-to-end efficiency and
upgrading data and technology capabilities

Higher, more sustainable, returns

Delivering a >10% RoTE by 2024, with a step-change to >12% RoTE by 2026 as full investment benefits are realised
step change in
profitability Higher, more sustainable, capital generation
Average capital generation of c.150bps per annum 2022-2024, sustainably improving to 175-200bps by
2026; committed to returning excess capital and paying down to target CET1 ratio by 2024

20
Classification: Public

Building on our strong foundations

Our strong foundations… …have created distinct competitive strengths

Leading UK customer franchise with trusted brands Maintained leading market shares;
19% since 2017

>1m business client Relationship with

relationships c.50% of UK adults
Largest UK digital bank
Largest UK
bank

Operating at scale with strong cost discipline UK’s only integrated

Differentiated Deep
business customer Significant data asset;
financial services model insights 1bn monthly transactions
provider

Financial strength and disciplined risk management

18.3m digitally active customers; Record all-channel NPS;
45% growth over last 5 years 7pt growth over last 5 years

Dedicated colleagues with strong values

21
Classification: Public

Changing environment, opportunity to do more

Key challenges Key opportunities

High NII dependency in a low rate environment Grow and diversify revenue base

Customer behaviour and competition driving disintermediation Create more valuable relationships as integrated provider

Accelerated shift to digital Drive end-to-end efficiency through digitisation

Need to enhance and simplify technology infrastructure Modernise technology to drive efficiency

Heightened societal, environmental and colleague expectations Align purpose to value for all our stakeholders

22
Classification: Public

Our strategy serves our purpose and builds upon our

participation choices

Purpose Strategic participation choices Strategic vision

Customer focus
UK consumers and UK-linked businesses and corporates

Helping Product focus

UK customer-focused
Britain Meeting all consumer and business financial needs in one place digital leader and
integrated financial
Prosper services provider,
Distribution focus
capitalising on new
All-channel distribution, digital leadership, and trusted brands
opportunities, at scale

Financial focus
Strong balance sheet efficiency and disciplined risk approach

23
Classification: Public

Transforming to create higher and more sustainable value

A clear strategic vision… …with a transformation plan… …creating higher and more sustainable value

Drive revenue growth

and diversification
Grow

UK customer-focused digital Higher, more

leader and integrated
Strengthen cost and
sustainable, returns
financial services provider,
capitalising on new Focus
capital efficiency and capital
opportunities, at scale generation
Maximise the potential
of people, technology
Change and data

24
Classification: Public

Delivering for our stakeholders, profitably

Purpose drives value Delivering for our stakeholders

Improving access to quality housing

Promoting financial inclusion and education

Clear purpose and mission Building an
inclusive society Enabling regional development

Strategic direction 50% female, 13% Black, Asian and minority ethnic with
3% Black heritage colleagues in senior roles by 2025

Stronger financial position

Reduce carbon emissions we finance by >50% by
2030, on the path to net zero by 2050 or sooner
Long-term value creation Supporting the
transition to a low Net zero own operations by 2030
carbon economy
Sustainability outcomes embedded across business
priorities

25
Classification: Public

Higher, more sustainable, returns and capital generation

c.£3bn incremental strategic investment by 2024… …will create higher, more sustainable, returns

>10% RoTE by 2024

Drive revenue growth and diversification c.£0.7bn additional revenues from strategic initiatives
Grow
c.£8.8bn operating costs, flat on 2022

c.150bps capital generation per annum

Strengthen cost and capital efficiency

Focus
>12% RoTE by 2026
c.£1.5bn additional revenues from strategic initiatives

Maximise the potential of people, <50% cost:income ratio

technology and data
Change 175-200bps capital generation per annum

26
Classification: Public

Our strategic
priorities

27
Classification: Public

Drive revenue growth and diversification

Key outcomes from strategic initiatives

c.£1.5bn per annum

Deepen and Create a new Additional revenues in 2026
1 innovate in 2 mass affluent (c.£0.7bn in 2024)
Consumer offering

50:50
NII/OOI split from strategic initiatives by 2026
Target our
Digitise and
Corporate and
3 diversify our 4
Institutional
SME business
offering >2pp RoTE
Contributes to 2024-2026 RoTE uplift

28
Classification: Public

1 Deepen and innovate in Consumer

Leading UK consumer franchise Opportunity to deepen relationships and innovate intermediary propositions

Customer financial needs1

Largest UK 26m
bank £200m run-rate Total across all providers
Consumer relationships through (Avg UK consumer)
c.7
revenues
our iconic and trusted brands
for every 5%
increase in
needs met Met by LBG
(Avg LBG customer)
2.4
Deep 26
customer
insights Average mobile app customer
logins per month LBG intermediary Intermediary share
market share of the market
Mortgages 19% c.80%
Intermediary
Workplace pensions 19% c.90%
opportunity with
Differentiated
business
40% headroom in Motor finance 14% c.85%
model Consumer income generated market shares Home insurance 9% c.60%
through intermediary channel Protection 5% c.80%
Individual pensions 3% c.70%

Note: Consumer business represents Retail (excluding Business Banking) and Insurance & Wealth divisions. 1 – Customer financial needs defined by average product holdings.
29
Classification: Public

1 Deepen and innovate in Consumer relationships

Business priorities: £600m incremental strategic investment over 3 years 2024 outcomes:

Maintain leading market share in core product areas

through service and digital solutions
>5%
Protect and
grow Increase in depth of relationship1 through
Enhance and optimise unsecured lending proposition to meeting more needs of existing customers
capture spend normalisation and drive balance growth

>10%
Personalise pricing and credit risk decisions
Deepen and build Increase in digitally active customers to >20m
valuable
Develop home ecosystem with integrated mortgages,
relationships
green retrofit and insurance products
£10bn
Green mortgage lending2
Enrich customer touchpoints with payments insights, digital
Drive stronger solutions and seamless self-service
customer
engagement Extend digital channels to include new direct to consumer
Grow
leasing and financing solutions for EV charge points Credit card spend market share

1 – Depth of relationship relates to product holdings across brands for franchise customers with active relationship. 2 – New mortgage lending on new and existing residential property that meets an
Energy Performance Certificate (EPC) rating of B or higher. Measure is cumulative to 2024. 30
Classification: Public

1 Innovate and broaden our intermediary propositions

Business priorities: £400m incremental strategic investment over 3 years 2024 outcomes:

Maintain value maximising approach in mortgages with our

specialist brands and partnerships with major distributors
>£55bn new AuA
Protect and
grow Investment and retirement open book
Strengthen workplace pensions and intermediary insurance net flows1
offering to capture share

Top 3
Embrace embedded finance propositions Protection provider by 2025
Deliver new
platforms and
Create next-gen digital platform for investment and
propositions
retirement to better support IFAs £20bn-25bn
Invested in climate-aware strategies2 through
Scottish Widows by 2025
Enhance transport offering with more flexible finance
solutions, expanded manufacturer partnerships and services
Differentiate offering
to capture value £8bn
Scale Citra private rental housing business
Financing and leasing for Electric Vehicles
and Plug-in Hybrid Electric Vehicles3

1 – Includes long-term savings and excludes Embark day-1 contribution of c.£37bn, longstanding, unbundled investment only pensions, Cazenove, and legacy Private Banking Trusts. Note that future flows
into Embark are included. 2 – Climate-aware strategies are a set of pre-defined funds that have an in-built bias or tilt towards companies that are transitioning their business models to be less carbon-
31
intensive and/or developing climate solutions. 3 – Includes new lending advances for Black Horse and operating leases for Lex Autolease (gross); includes cars and vans. Measure is cumulative to 2024.
Classification: Public

2 Create a new mass affluent offering

Strong platform for growth Opportunity to expand in growing mass affluent market

Significant scope for a targeted LBG …and a rapidly growing market

Largest UK
>2m mass affluent offering…
bank Eligible mass affluent customers
across Lloyds Banking Group LBG customers eligible for mass affluent, Total market investments and individual
affluent and HNW propositions1 pensions AuA (£bn)2

LBG share3 4%

Deep
50k >2m CAGR
customer
insights
Introductions to Schroders 8%
Personal Wealth in 2021 3,700

2,300

Differentiated UK’s only

business
model Integrated financial services 0.2m
<0.1m
provider
Mass affluent Affluent HNW 2020 2026
£75k - £250k £250k - £2m >£2m

Note: Segmentation reflects income or deposit balances (balance thresholds shown). 1 – Based on PCA and/or savings holdings with the Group. 2 – Internal estimate based on ABI, Investment Association,
Fundscape, HMRC, Compeer, Platforum, and Company Results. 3 - Includes c.£50bn AuA through intermediary channels (Embark and Scottish Widows) and c.£30bn through direct channels (predominantly
32
HSDL and SPW). Excludes Longstanding AuA.
Classification: Public

2 Create a new mass affluent offering

Business priorities: £300m incremental strategic investment over 3 years 2024 outcomes:

Enhanced propositions including high quality current

Tailored banking accounts, mortgages and complex lending >£5bn
proposition
Unique digital and data-led service offering Incremental total banking balances for mass
affluent increasing to £10bn -15bn by 2026

Direct-to-consumer investments through Embark, with

Enhanced
investments,
prompts and goals-based planning >£7bn
platforms and
Compelling service model with data-driven, human Incremental net flows into investment
digital-first advice
support on a digital platform proposition increasing to £25bn by 2026

Greater integration Connecting banking, insurance, lending, payments and Grow

across the Group investments into integrated propositions at low cost to serve
Number of mass affluent PCA customers

33
Classification: Public

3 Digitise and diversify our SME business

Well positioned to succeed Opportunity to meet more client needs with a digital-first model

Non lending income as a % of total income

Largest UK Top 3
bank c.8pp
Across key purpose aligned
sectors1 Scope to grow
ancillary revenues

Deep 20% LBG 2 Market

customer
insights Primary relationship market
share2

c.5% Market share in merchant acquiring

Opportunities for
Differentiated >1,000 growth in
business transactional products
model Sector and relationship
specialists across the UK and digitisation Share of products originated and fulfilled
c.10% digitally today

1 – Including agriculture, real estate, healthcare. 2 - Excludes Retail Business Banking.

34
Classification: Public

3 Digitise and diversify our SME business

Business priorities: £500m incremental strategic investment over 3 years 2024 outcomes:

Broaden Provide extensive support to UK businesses, improve >50%

relationships with service, support net zero transition, and optimise returns
improved returns Share of products originated and fulfilled
digitally

Data enriched, digitised service channels with RMs

Deliver digital focused on complex needs >15%
customer offering
Digitised products and processes with automated risk Income growth in mid-sized SME transaction
controls and auto credit decisioning banking and working capital

Diversify income
Broader support for trading sectors and working capital
needs, including merchant services, trade, cashflow
20% per annum
lending, and value-added services Growth in new merchant services clients

35
Classification: Public

4 Target our Corporate and Institutional offering

Our differentiated position Opportunity to strengthen a core business with focus on UK-linked clients

Corporate and Institutional OOI as a % of total income

Largest UK
Leading provider
bank
UK Gilts, GBP DCM, project 18pp
finance, sustainable financing Scope to diversify
earnings

Deep 65% LBG Peer top quartile

customer
insights FTSE 350 clients with active
Group relationship
Annual UK requirement for sustainability-related investments (£bn)1

CAGR
Growing need for
Differentiated
business
£0.5bn green transition c.20%
50
financing
model Relationship income generated <10
for wider Group
2020 2025 2030

1 – UK Climate Change Committee (CCC) recommendations for the UK’s Sixth Carbon Budget.
36
Classification: Public

4 Target our Corporate and Institutional offering

Business priorities: £200m incremental strategic investment over 3 years 2024 outcomes:

Strengthen Product enhancements in core capabilities - transaction £15bn

cash-debt-risk banking, debt financing, and targeted markets investment
management Sustainable financing1
offering Increased balance sheet velocity
Top 5
GBP interest rate swaps ranking;
Focus on clients aligned to our purpose and capabilities deepen FX share of wallet
Disciplined sector
focus
Specialist sector-specific support including ESG advisory
>20%
Growth in OOI
Expand internationally where we do not have sufficient
What we will scale, capability or a clear UK-link
NOT do <£3bn
Extend beyond cash-debt-risk management offering
Net RWA growth

1 – Includes Clean Growth Finance Initiative, Commercial Real Estate Green Lending, Renewable Energy Financing, Sustainability Linked Loans and Green, ESG and Social Bond facilitation. Measure reflects
cumulative new financing to 2024. 37
Classification: Public

Strengthen cost efficiency

Key priorities: c.£1bn incremental strategic investment over 3 years

2024 outcomes:

Lower cost of
technology
Simplify our technology estate through decommissioning or
migration to more efficient infrastructure
>15%
Reduction in legacy applications

Lower cost of Modernise technology applications and infrastructure,

15%
change reducing cost of ownership and driving greater agility Gross reduction in run and change
technology costs

Lower cost to
Enhance self-service capabilities across distribution and
customer operations
>10%
serve Increase in customers served per
Deliver further end-to-end digitisation of customer journeys
distribution FTE

Central functions
Improve productivity through automation and simplification >30%
and offices Optimise office portfolio in line with hybrid ways of working Reduction in office footprint

38
Classification: Public

Strengthen capital efficiency

Strong balance sheet with a clear approach to capital management

Clear growth focus: Discipline:

Growth in capital-lite, fee Rigid discipline on pricing

generating OOI businesses and returns
Capital
management
approach

Portfolio management: Building new capabilities:

Continued RWA optimisation and recycling Originate to distribute capabilities for

into higher returning businesses Corporate and Institutional clients

39
Classification: Public

Maximise the potential of people, technology and data

People 2024 outcomes:

Transforming ways of working, recruiting and Improve

developing new skills; building an inclusive organisation
Employee Engagement Index

Technology

Further embedding an agile technology model, 20%

driving scale, efficiency and business value Applications on cloud (private and public)

Data

Leveraging data-driven insights to create value for

60%
customers from our information flows Business new lending decisions automated

40
Classification: Public

Strategic execution creates clear outcomes

Deepen and Meeting more needs of existing customers

innovate in Increased digitally active customers
Consumer
Higher market shares with intermediaries Strengthen Lower cost of technology
cost and
capital Lower cost of change
efficiency Lower cost to serve
Create a new New offering for underserved mass affluent segment
mass affluent
offering Higher banking balances and net flows

Digitise and Digitised SME bank

Maximise the Financial services’ employer of choice
diversify our
SME offering Greater proportion of OOI with non-lending products potential of
Greater adoption of modern
people,
technology, data and analytics
technology
and data Driving business opportunity
Target our
Corporate and Disciplined cash-debt-risk management offering
Institutional
Higher returns with increased OOI
offering

41
Classification: Public

Higher, more
sustainable, returns
and capital generation

42
Classification: Public

Clear financial framework

1 2 3 4

Grow and diversify Strong focus on cost Higher, more Higher, more sustainable,
revenues discipline sustainable, returns capital generation

Disciplined return hurdles and clear execution outcomes

43
Classification: Public

Plan based on prudent economic assumptions

Assumptions reflect ongoing Covid recovery Positive exposure to rate rises, although not primary
driver of returns1

2022 2023 2024 £m Year 1 Year 2 Year 3

GDP growth (YoY) 3.7% 1.5% 1.3%

+50bps c.375 c.525 c.800

Bank Rate
0.81% 1.00% 1.06%
(year average)
+25bps c.200 c.275 c.400
CPI inflation
5.9% 3.0% 1.6%
(year average)

-25bps c.(425) c.(525) c.(650)

Unemployment rate 4.3% 4.4% 4.4%

HPI growth (YoY) 0.0% 0.0% 0.5%

1 – Illustrative interest rate sensitivity; based on the assumptions shown in the appendix on slide 57. 44
Classification: Public

Strategy enhances long-term revenue potential

Net income Business plan assumptions
(Illustrative, £bn)

2021 15.8 Ongoing mortgage margin pressure

Headwinds IFRS17 impact in 2023, with recovery thereafter

Headwinds

Normalisation of equity investment contribution and OLD1

Existing franchise and rates

Positive impact from rising rates including increased

Strategic initiatives c.0.7 hedge income in 2022; modest increase in 2023/24

Existing Higher unsecured balances and card spend as economy

2024
franchise recovers
c.£1.5bn and rates
Existing franchise OOI growth in Insurance & Wealth

Strategic initiatives c.0.8 Building markets activity levels

c.£0.7bn additional revenues in 2024

2026 onwards Strategic
initiatives
c.£1.5bn additional revenues in 2026

1 – Operating Lease Depreciation. 45

Classification: Public

A clear approach to BAU cost management

1 Transparency: Adopting a new basis of reporting 2 Stable BAU costs: c.£600m savings by 2024 to
offset headwinds
Representation of 2021 operating costs, (£m)

+c.£685m £0.2bn savings

Technology Modernised technology reducing
c.180 c.8,300 run costs
504
7,630

£0.3bn savings
Digitisation Improved productivity through
digitisation and automation
2021 operating costs: Below to Non-lending 2021 BAU costs:
current basis above the fraud charges revised basis
line switch and other

From Includes ongoing £0.1bn savings

impairment investment Property
Optimisation of office estate

Improving transparency

46
Classification: Public

Increased investment in the business

3 New Opex: Savings to offset new initiatives 4 Incremental strategic investment

c.£3bn Incremental strategic investment

c.£350m Gross savings from strategic initiatives: to c.£3bn over three years
by 2024 technology, data and lowering cost to serve 2024 c.£4bn over five years

Ongoing BAU investment

Continuation of prior investment to
maintain competitive position
c.25% Run-rate marginal cost:income ratio of
new growth initiatives

c.60% capitalisation rate

47
Classification: Public

Maintaining cost discipline through a period of investment

Key outcomes
Operating costs
(£bn)
Stable BAU costs
New Opex
Throughout the plan
Headwinds
Headwinds c.8.8 c.8.8

8.3 c.£8.8bn
New Savings
Savings Operating costs in 2024, flat on 2022;
Savings
reducing beyond 2024

Stable BAU costs Stable BAU costs c.£1bn

Gross cost savings by 2024 (BAU and
strategic)

<50%
2021 Stable Higher 2022 IFRS 17 Stable Higher Net new 2024
BAU investment / BAU depreciation opex / Cost:income ratio by 20261
new businesses savings

1 – Calculated as total costs (operating costs plus remediation) divided by net income. 48
Classification: Public

Higher, more sustainable, returns

Key outcomes
Return on tangible equity
(%)

Savings
>12% >10% RoTE by 2024 and >12% by 2026 as
full investment benefits are realised
11.4 >10%
Capital dist.

Headwinds
Disciplined RWA growth beyond 2022 as
business growth and regulatory changes are
Pensions
surplus partly offset by optimisation and recycling

£220bn - £225bn RWAs in 2024

2021 Existing BAU costs Remediation Normalising Higher Strategic Equity 2024 Strategic 2026
excl. DTA franchise & other impairments investment initiatives initiatives
income

Note: IFRS 17 included within other; as previously disclosed, modestly positive RoTE impact expected. 49
Classification: Public

Higher, more sustainable, capital generation

Capital generation Clear capital return policy

(Pre-variable pension contributions1) Step change as benefits of
investment realised and new
investment reduces

175-200bps
Capital return in 2021
2021 £3.4bn c.10% of market capitalisation
Robust capital generation
despite higher investment and
RWA growth

c.150bps
c.140bps Progressive and sustainable ordinary dividend

c.12.5% target CET1 ratio plus management buffer of c.1%

Ongoing
3-year average 2022-2024 average 2026 +
(2019-2021)

Expect to pay down to target CET1 ratio by end of 2024

Capital generation creates capacity for shareholder distributions

1 – Arrangement in place for next two years to contribute 30% of in-year shareholder payments to pension schemes. 50
Classification: Public

Guidance overview

2022 2024 2026

Income NIM to be above 260bps

Stable BAU costs Stable BAU costs throughout the plan

Costs <50% cost:income ratio
c.£8.8bn operating costs (2021: £8.3bn) c.£8.8bn operating costs, flat on 2022

AQR Net AQR of around 20bps Net AQR less than 30bps over plan period

Returns
c.10% >10% >12%
(statutory RoTE)

RWAs c.£210bn £220bn - £225bn

Capital
c.150bps capital generation (average) per annum 175 – 200bps capital generation per annum
generation

Capital Progressive and sustainable ordinary dividend

distribution Expect to pay down to target CET1 ratio by end of 2024

51
Classification: Public

Closing
remarks

52
Classification: Public

Strategic vision delivering higher, more sustainable, returns

A clear strategic vision… …to create higher, more sustainable, returns

Higher, more diversified, revenues

Strong focus on cost discipline

UK customer-focused digital
leader and integrated financial
Enabling our strategy through people, technology and data
services provider, capitalising on
new opportunities, at scale Higher, more sustainable, returns

Higher, more sustainable, capital generation

53
Classification: Public

Q&A

54
Classification: Public

Appendix

55
Classification: Public

Quarterly P&L and key ratios

(£m) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020

Underlying net interest income 2,893 2,852 2,741 2,677 2,677 2,618 2,528 2,950
Underlying other income 1,307 1,336 1,282 1,135 1,066 988 1,235 1,226
Operating lease depreciation (78) (111) (123) (148) (150) (208) (302) (224)
Net income 4,122 4,077 3,900 3,664 3,593 3,398 3,461 3,952
Operating costs (2,029) (1,871) (1,879) (1,851) (2,028) (1,858) (1,822) (1,877)
Remediation (775) (100) (360) (65) (125) (77) (90) (87)
Total costs (2,804) (1,971) (2,239) (1,916) (2,153) (1,935) (1,912) (1,964)
Underlying profit before impairment 1,318 2,106 1,661 1,748 1,440 1,463 1,549 1,988
Underlying impairment (charge) credit 467 84 333 323 (128) (301) (2,388) (1,430)
Underlying profit (loss) 1,785 2,190 1,994 2,071 1,312 1,162 (839) 558
PPI – – – – (85) – – –
Other below the line items (817) (161) 13 (173) (435) (126) 163 (484)
Statutory profit / (loss) before tax 968 2,029 2,007 1,898 792 1,036 (676) 74
Statutory profit / (loss) after tax 420 1,600 2,468 1,397 680 688 (461) 480

Net interest margin 2.57% 2.55% 2.51% 2.49% 2.46% 2.42% 2.40% 2.79%
Average interest-earning assets £449bn £447bn £442bn £439bn £437bn £436bn £435bn £432bn
Cost:income 68.0% 48.3% 57.4% 52.3% 59.9% 56.9% 55.2% 49.7%
Asset quality ratio (0.41)% (0.07)% (0.30)% (0.29)% 0.11% 0.27% 2.16% 1.30%
Return on tangible equity 2.9% 14.5% 24.4% 13.9% 5.9% 6.0% (6.1)% 3.7%
TNAV per share 57.5p 56.6p 55.6p 52.4p 52.3p 52.2p 51.6p 57.4p

56
Classification: Public

Illustrative NII sensitivity

• Reflects shifts in forward rate curve

• Impact driven by structural hedge re-
Cumulative impact of parallel shifts in interest rate curve1 investment and benefit on certain deposits
(£m)
• Actual impact also depends on regulatory
and competitive environment at the time
Year 1 Year 2 Year 3 • Illustrative sensitivity does not reflect new
+50bps c.375 c.525 c.800 business margin implications and/or
pricing actions, other than as outlined
+25bps c.200 c.275 c.400
• Assumptions
-25bps c.(425) c.(525) c.(650)
− Instantaneous parallel shift in interest
rate curves, including bank base rate
− Balance sheet remains constant
− Illustrative 50% deposit pass-through,
which could be different in practice

1 – Sensitivity based on modelled impact on banking book NII (including structural hedge). Annual impacts are presented for illustrative purposes only and are based on a number of assumptions which 57
are subject to change. Year 1 reflects the 12 months from 31/12/2021 balance sheet position.
Classification: Public

Prudent economic scenarios

ECL Economic measure vs Q3 vs FY Average

Scenario (£m) (%) 2021 20211 20201 2022 2023 2024 2025 2021-25
GDP 7.1 0.4 3.4 4.0 1.4 1.3 1.4 3.0
Interest rate 0.14 (0.12) (1.00) 1.44 1.74 1.82 2.03 1.43
Upside (30%) 4,018 Unemployment rate 4.4 (0.2) (1.0) 3.3 3.4 3.5 3.7 3.7
HPI growth 10.1 4.3 11.5 2.6 4.9 4.7 3.6 5.1
CRE price growth 12.4 4.7 3.1 5.8 0.7 1.0 (0.6) 3.7
GDP 7.1 0.8 4.1 3.7 1.5 1.3 1.3 2.9
Interest rate 0.14 0.04 0.04 0.81 1.00 1.06 1.25 0.85
Base case
4,277 Unemployment rate 4.5 (0.5) (2.3) 4.3 4.4 4.4 4.5 4.4
(30%)
HPI growth 9.8 5.0 13.6 0.0 0.0 0.5 0.7 2.1
CRE price growth 10.2 8.1 11.9 (2.2) (1.9) 0.1 0.6 1.2
GDP 7.1 1.0 5.4 3.4 1.3 1.1 1.2 2.8
Interest rate 0.14 0.03 0.08 0.45 0.52 0.55 0.69 0.47
Downside
4,787 Unemployment rate 4.7 (0.6) (3.2) 5.6 5.9 5.8 5.7 5.6
(30%)
HPI growth 9.2 5.6 17.6 (4.9) (7.8) (6.6) (4.7) (3.1)
CRE price growth 8.6 9.8 19.2 (10.1) (7.0) (3.4) (0.3) (2.6)
GDP 6.8 1.3 6.5 0.9 0.4 1.0 1.4 2.1
Severe Interest rate 0.14 0.06 0.14 0.04 0.06 0.08 0.09 0.08
downside 5,748 Unemployment rate 4.9 (1.0) (5.0) 7.7 8.5 8.1 7.6 7.3
(10%) HPI growth 9.1 6.0 20.2 (7.3) (13.9) (12.5) (8.4) (6.9)
CRE price growth 5.8 13.0 27.2 (19.6) (12.1) (5.3) (0.5) (6.8)
Probability-
4,499
weighted ECL

1 – Comparison to scenarios modelled at Q3 2021 and FY 2020; changes only shown for 2021 measures. 58
Classification: Public

Updated coverage after updated economic outlook

Gross Coverage (ex. Recoveries)1 Total P&L Net ECL Write-offs

customer coverage ECL Write-offs charge / increase / ECL Q4 & Other
(£m) L&A (£bn) Stage 1 Stage 2 Stage 3 Total Q4 20201 Q4 2020 & Other (credit) (decrease) 2021 FY 2020

Retail 366.3 0.1% 3.4% 19.6% 0.7% 1.1% 4,008 (1,000) (285) (1,285) 2,723 (1,172)

UK Mortgages 308.8 0.0% 2.3% 13.9% 0.4% 0.5% 1,605 (48) (273) (321) 1,284 (89)

Cards 14.5 1.2% 12.2% 58.2% 3.7% 6.4% 958 (378) (49) (427) 531 (448)

Loans & Overdrafts 9.6 1.7% 15.4% 67.5% 4.7% 7.6% 715 (479) 209 (270) 445 (485)

Motor 14.3 0.9% 4.0% 57.7% 2.1% 3.3% 501 (52) (151) (203) 298 (112)

Other 19.1 0.3% 3.3% 13.8% 0.9% 1.2% 229 (43) (21) (64) 165 (38)

Commercial 85.4 0.2% 4.0% 34.4% 1.6% 2.7% 2,402 (153) (916) (1,069) 1,333 (377)

Other 2 52.3 0.8% 5.9% 23.2% 0.8% 0.7% 450 (1) (6) (7) 443 1

Total 504.0 0.2% 3.5% 24.7% 0.9% 1.4% 6,860 (1,154) (1,207) (2,361) 4,499 (1,548)

1 – Underlying basis. Loans and advances to customers only; excludes £22m of ECL on other assets at 31/12/2021 (£28m at 31/12/2020). 2 – Includes reverse repos of £51.2bn (£58.6bn at 31/12/2020) 59
which dilutes reported Group coverage by 0.1pp (0.1pp at 31/12/2020).
Classification: Public

Continued low mortgage LTVs

December 20211 20201 20101

Mainstream Buy to let Specialist Total Total Total

Average LTVs 41.3% 47.7% 37.5% 42.1% 43.5% 55.6%

New business LTVs 63.7% 60.4% N/A 63.3% 63.9% 60.9%

≤ 80% LTV 94.5% 99.5% 95.9% 95.4% 91.6% 57.0%

>80–90% LTV 5.0% 0.2% 1.3% 4.1% 7.8% 16.2%

>90–100% LTV 0.4% 0.1% 0.9% 0.3% 0.3% 13.6%

>100% LTV 0.1% 0.2% 1.9% 0.2% 0.3% 13.2%

Value >80% LTV £13.6bn £0.3bn £0.4bn £14.3bn £24.9bn £146.6bn

Value >100% LTV £0.2bn £0.1bn £0.2bn £0.5bn £1.0bn £44.9bn

Gross lending £248.2bn £51.2bn £9.4bn £308.8bn £295.4bn £341.1bn

1 – 2020-21 LTVs use Markit's 2019 Halifax HPI; 2010 LTVs use Markit's pre-2019 Halifax HPI and include TSB. 60
Classification: Public

Glossary and definitions

Term Definitions and calculations

AIEA Average Interest-Earning Banking Assets

Asset Quality Ratio: The underlying impairment credit or charge for the period in respect of loans and advances to customers, expressed as a percentage of
AQR
average gross loans and advances to customers for the period
Banking balances Includes both assets and liabilities

CET1 ratio Common Equity Tier 1 Capital Ratio: Common Equity Tier 1 Capital over Risk Weighted Assets

CIR Cost-to-Income Ratio: Total costs as a percentage of net income calculated on an underlying basis

Completion margin Total completion margins include new business and product transfers and is the difference between the customer rate and the relevant funding rate

Depth of relationships Products included: PCA, Savings, Mortgage, Loan, Cards, Investments, Home Insurance, Motor Insurance, Protection

EV / PHEV Electric Vehicle / Plug-in Hybrid Electric Vehicle

Green mortgage lending New mortgage lending on new and existing residential property that meets an Energy Performance Certificate (EPC) rating of B or higher

Gross margin Gross customer receivables, less relevant risk free funding costs; references SONIA. Deposit gross margin includes structural hedge income

LDC Lloyds Development Capital

MES Multiple Economic Scenarios

Net Income Underlying net interest income and other income less operating lease depreciation
Banking Net Interest Margin: Banking net interest income on customer and product balances in the banking businesses as a percentage of average gross
NIM
interest-earning banking assets for the period
OLD Operating Lease Depreciation

RoTE Return on Tangible Equity: Profit attributable to ordinary shareholders, divided by average tangible net assets
Includes Clean Growth Finance Initiative, Commercial Real Estate Green Lending, Renewable Energy Financing, Sustainability linked Loans and Green, ESG and
Sustainable financing
Social Bond facilitation
Tangible Net Asset Value Per Share: Net assets excluding intangible assets such as goodwill and acquisition-related intangibles divided by the number of
TNAV
ordinary shares in issue

61
Classification: Public

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 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; expectations about the impact of COVID-19; 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, 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; market related risks, trends and developments; risks concerning borrower and counterparty credit quality; fluctuations in interest rates,
inflation, exchange rates, stock markets and currencies; volatility in credit markets; volatility in the price of our securities; any impact of the transition from IBORs to alternative
reference rates; 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; inability to capture accurately the expected value from acquisitions;
potential changes in dividend policy; the ability to achieve strategic objectives; insurance risks; management and monitoring of conduct risk; exposure to counterparty risk; credit
rating risk; tightening of monetary policy in jurisdictions in which the Group operates; instability in the global financial markets, including within the Eurozone, and as a result of
ongoing uncertainty following the exit by the UK from the European Union (EU) and the effects of the EU-UK Trade and Cooperation Agreement; political instability including as a
result of any UK general election and any further possible referendum on Scottish independence; operational risks; 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; natural pandemic (including but not limited to the COVID-19
pandemic) and other disasters; inadequate or failed internal or external processes or systems; acts of hostility or terrorism and responses to those acts, or other such events;
geopolitical unpredictability; risks relating to sustainability and climate change (and achieving climate change ambitions), including the Group’s ability along with the government and
other stakeholders to measure, manage and mitigate the impacts of climate change effectively; changes in laws, regulations, practices and accounting standards or taxation; changes
to regulatory capital or liquidity requirements and similar contingencies; assessment related to resolution planning requirements; the policies and actions of governmental or
regulatory authorities or courts together with any resulting impact on the future structure of the Group; 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; projected employee numbers and key person risk; increased labour costs; assumptions
and estimates that form the basis of our financial statements; the impact of competitive conditions; and exposure to legal, regulatory or competition proceedings, investigations or
complaints. 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. 62