This report does not constitute a rating action. Overview Key strengths Key risks Market-leading U.K. retail banking franchise. Muted macroeconomic conditions in the U.K. will dampen loan book growth and squeeze borrowers' credit quality. Strong earnings provide financial flexibility. Narrow geographical focus on the U.K. Supportive funding and liquidity profiles. Lloyds' solid strategic position stems from its market-leading franchise in the U.K. It has a dominant mortgage business and strong market share 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. Lloyds has performed well under its five-year strategic plan, delivering a return on tangible equity of 14.0% in 2024, excluding the
