Leading franchise in U.K. retail banking and strong positions in U.K. commercial and corporate banking and insurance. An efficient operating model that supports business stability, competitiveness, and good relative profitability. Supportive capitalization and funding and liquidity profiles. Residual downside risks of weaker economic conditions as the U.K. moves to exit the EU (Brexit). The stable outlook on our ratings on Lloyds reflects our view that Lloyds should be relatively resilient to the uncertainties and potential turbulence arising from the Brexit negotiations in the period to March 2019. We expect that Lloyds' statutory profitability will further improve through end-2019; that it will maintain an S&P Global Ratings-adjusted risk-adjusted capital (RAC) ratio of 7.8%-8.3% (it was 8.0% at end-2017); and that total
