Market-leading franchise in U.K. retail banking, and strong positions in U.K. corporate banking and insurance. Cost-efficient operating model that supports strong pre-provision profitability, business stability, and competitiveness. Supportive funding and liquidity profiles anchored by strong deposit franchise. Geographically concentrated in the U.K., which is now in recession owing to the impact of COVID-19. Our risk-adjusted capital (RAC) ratio is lower than the average for U.K. peers, which partly reflects the deduction of Lloyds' material investment in its insurance business. The negative outlook on Lloyds Banking Group reflects potential earnings pressures arising from the economic and market impact of the COVID-19 pandemic. If we saw clear signs that the U.K. systemwide domestic loan loss rate was going to exceed 100 basis
