Market-leading franchise in U.K. retail banking, and strong positions in U.K. corporate banking and insurance. Cost-efficient operating model that underpins profitability, business stability, and competitiveness. Supportive capitalization, funding, and liquidity profiles. Geographically concentrated in the U.K., where Brexit brings a risk of weaker economic conditions. Our risk-adjusted capital ratio is lower than the average for U.K. peers, which partly reflects the full deduction of the investment in insurance subsidiary Scottish Widows. The stable outlook on Lloyds Banking Group plc (Lloyds) reflects our view that it should remain resilient to current U.K. political and economic risks arising from the uncertain Brexit outcome. Our base case expectation is that statutory profitability will improve toward management's targets, and continued dividends and share buybacks
