Lloyds has a dominant U.K. mortgage franchise and strong market shares across credit cards, unsecured lending, and commercial banking. The absence of meaningful international diversification remains a constraining factor in our relative view of the group's business position compared with that of globally diversified peers. That said, the group's diversified balance sheet stacks up well next to similar universal service, national champion banks in Europe like Credit Agricole, Rabobank, or Nordea--all of which are well diversified across retail and commercial lending but with strong domestic concentration. Furthermore, we note that at fourth-quarter 2022 stable, or fully insured, deposits formed the majority of Lloyds' deposit funding as per its regulatory liquidity coverage ratio--a solid level among U.K. peers where stable deposits
