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., whose economy continues to be affected by 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 the ongoing economic and market impact of the COVID-19 pandemic on the U.K. banking system. We could lower the ratings over our two-year outlook time horizon if we observe further economic weakness which
