Business
BoE Stress Test Passed
Lloyds Banking Group has comfortably passed the Bank of England's 2025 Bank Capital Stress Test, demonstrating resilience under a severe global economic shock scenario. The Group's stressed Common Equity Tier 1 (CET1) ratio was calculated at 10.9% and its stressed leverage ratio at 4.6%, significantly exceeding the minimum requirements of 5.9% and 3.3% respectively, without requiring capital actions. This strong performance reflects prudent balance sheet management and a robust capital position, with a pro-forma CET1 ratio of 13.5% and a UK leverage ratio of 5.5% as of December 31, 2024. The Group will assess the implications of the Financial Policy Committee's capital review. Disclaimer*
About this update from Lloyds Banking Group Plc
[{"type":"text","content":"\n\n \n2 December 2025\n \nLLOYDS BANKING GROUP COMFORTABLY PASSES\nBANK OF ENGLAND STRESS TEST\n \n \nLloyds Banking Group (the Group), together with six other financial institutions in the UK, has been subject to the 2025 Bank Capital Stress Test (BCST), conducted by the Bank of England (BoE). The full set of results have been published this morning, on the BoE's website, as part of its Financial Stability Report.\n \nThe Group is pleased to note that it has comfortably passed the stress test and given this strong performance, the Group is not required to take any capital actions. The BoE calculated the Group's stressed CET1 ratio after the application of management actions as 10.9% and its stressed leverage ratio as 4.6%. Despite the severity of the stress test scenario, and without the conversion of the Group's AT1 securities into equity, the Group significantly exceeded the capital and leverage minimum requirements of 5.9% and 3.3% respectively.\n \nThe 2025 BCST scenario was designed to test the resilience of the UK banking system under a severe global aggregate supply shock, which leads to deep recessions across the world and escalation of geopolitical tensions. The BoE stated at the outset of the exercise that the focus of this hypothetical scenario was to ensure that banks were able to absorb rather than amplify shocks and continue to lend to UK households and businesses. The scenario was more severe than the last global financial crisis and combined rapidly rising interest rates and unemployment, in conjunction with significant falls in property prices and GDP. In addition to these economic factors, and in line with previous years, the stress scenario also reflected other risks such as conduct events, alongside a traded risk scenario. Clearly since the date of this stress test (conducted with a balance sheet date of 31 December 2024) we have taken a significant further provision for the potential impact of Motor Finance.\n \nThe strong performance and indeed continued strengthening of the stressed performance of the Group reflects the Group's prudent balance sheet management and strong capital position (having reported a pro-forma CET1 ratio of 13.5% and a UK leverage ratio of 5.5%, at 31 December 2024). The Group continues to be strongly capital generative as highlighted in our recen...