LLOYDS BANKING GROUP PLC Insurance and Wealth 11 1 11 23 4.3 47.8 Central items 400 - 6 406 - 1.5 Total ECL allowance (drawn and undrawn) 1,597 2,727 2,508 6,832 39.9 36.7 Group ECL allowances (drawn and undrawn) as a % of loans and advances to customers4 UK Mortgages - 2.1 15.6 0.5 Credit cards 2.2 16.8 58.8 6.4 Loans and overdrafts 2.9 22.6 64.2 7.6 UK Motor Finance 1.5 7.7 66.8 3.3 Other 0.3 9.5 39.3 1.2 Retail1 0.3 4.3 22.5 1.1 SME 0.5 5.2 19.1 1.6 Other 0.5 5.2 42.9 3.4 Commercial Banking 0.5 5.2 38.2 2.7 Insurance and Wealth 1.3 7.7 15.7 2.5 Central items 0.7 - 85.7 0.7 Total ECL allowances (drawn and undrawn) as a % of loans and advances 0.4 4.5 28.6 1.4 to customers 1. Retail balances exclude the impact of the HBOS and MBNA acquisition related adjustments. 2. Includes reverse repos of GBP58.6 billion. 3. UK Motor Finance for Stages 1 and 2 include GBP192 million relating to provisions against residual values of vehicles
subject to finance leasing agreements. These provisions are included within the calculation of coverage ratios. 4. Total and Stage 3 ECL allowances as a percentage of drawn balances exclude loans in recoveries in Retail of
GBP179 million, and in Commercial Banking of GBP138 million.
ADDITIONAL FINANCIAL INFORMATION (continued)
Group Stage 2 loans and advances to customers - underlying basis
Up to date 1-30 days Over 30 days past
due Total
PD movements Other1 past due2
Gross Gross Gross Gross Gross
ECL3 ECL3 ECL3 ECL3 ECL3
lending lending lending lending lending
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 31 March 2021
UK Mortgages 25,319 317 4,172 179 3,163 92 3,184 163 35,838 751
Credit cards 2,897 417 189 76 75 24 28 15 3,189 532
Loans and 904 202 366 63 131 49 38 20 1,439 334
overdrafts
UK Motor Finance 765 62 1,324 55 128 36 39 18 2,256 171
Other 473 67 589 34 69 9 87 7 1,218 117
Retail 30,358 1,065 6,640 407 3,566 210 3,376 223 43,940 1,905
SME 3,026 148 208 8 35 3 53 3 3,322 162
Other 6,055 307 100 3 60 6 116 - 6,331 316
Commercial 9,081 455 308 11 95 9 169 3 9,653 478
Banking
Insurance and 19 - 11 1 2 - 1 - 33 1
Wealth
Central items - - - - - - - - - -
Total 39,458 1,520 6,959 419 3,663 219 3,546 226 53,626 2,384
At 31 December
2020
UK Mortgages 28,049 354 4,067 189 2,663 82 3,103 173 37,882 798
Credit cards 2,916 422 220 78 92 28 36 20 3,264 548
Loans and 959 209 388 68 126 45 46 22 1,519 344
overdrafts
UK Motor Finance 724 62 1,321 55 132 37 39 17 2,216 171
Other 512 56 651 44 69 14 72 10 1,304 124
Retail 33,160 1,103 6,647 434 3,082 206 3,296 242 46,185 1,985
SME 4,229 219 150 6 40 5 81 4 4,500 234
Other 9,505 501 97 3 37 2 177 1 9,816 507
Commercial 13,734 720 247 9 77 7 258 5 14,316 741
Banking
Insurance and 1 - 12 1 - - - - 13 1
Wealth
Central items - - - - - - - - - -
Total 46,895 1,823 6,906 444 3,159 213 3,554 247 60,514 2,727 1. Includes forbearance, client and product-specific indicators not reflected within quantitative PD assessments. 1. Includes assets that have triggered PD movements, or other rules, given that being 1-29 days in arrears in and of itself is not a Stage 2 trigger. 2. Expected credit loss allowances on loans and advances to customers (drawn and undrawn).
ADDITIONAL FINANCIAL INFORMATION (continued)
UK economic assumptions - Base case scenario by quarter
Key quarterly assumptions made by the Group are shown below. Gross domestic product is presented quarter on quarter, house price growth and commercial real estate growth is presented year on year.
First Second Third Fourth First Second Third Fourth
quarter quarter quarter quarter quarter quarter quarter quarter
2021 2021 2021 2021 2022 2022 2022 2022
% % % % % % % %
Gross domestic product (1.6) 3.7 1.5 1.2 1.4 0.9 0.5 0.4
UK Bank Rate 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10
Unemployment rate 5.2 5.6 6.2 7.0 6.7 6.3 6.0 5.7
House price growth 4.9 6.1 0.7 (0.8) (0.8) (1.1) (0.4) 0.5
Commercial real estate price growth (4.5) (1.0) (1.0) (1.8) (0.8) (0.2) 1.2 1.9 UK economic assumptions - Scenarios by year
Key annual assumptions made by the Group are shown below. Gross domestic product is presented as an annual change, house price growth and commercial real estate price growth are presented as the growth in the respective indices within the period. UK Bank Rate and unemployment rate are averages for the period.
At 31 March 2021 2021 2022 2023 2024 2025 2021-2025
% % % % % %
Upside
Gross domestic product 5.7 4.6 1.4 1.3 1.2 2.8
UK Bank Rate 0.81 1.19 0.98 1.20 1.43 1.12
Unemployment rate 4.9 4.9 4.4 4.2 4.1 4.5
House price growth 0.8 4.0 6.0 4.3 3.6 3.7
Commercial real estate price growth 9.3 4.8 2.3 (0.4) (0.4) 3.1
Base case
Gross domestic product 5.0 5.0 1.6 1.3 1.3 2.8
UK Bank Rate 0.10 0.10 0.21 0.44 0.69 0.31
Unemployment rate 6.0 6.2 5.4 5.0 4.8 5.5
House price growth (0.8) 0.5 2.2 1.7 1.7 1.1
Commercial real estate price growth (1.8) 1.9 1.5 0.8 0.6 0.6
Downside
Gross domestic product 4.5 4.2 1.4 1.1 1.3 2.5
UK Bank Rate 0.12 0.12 0.09 0.17 0.33 0.17
Unemployment rate 6.9 7.7 6.9 6.3 5.9 6.8
House price growth (4.1) (6.9) (5.2) (3.9) (2.2) (4.5)
Commercial real estate price growth (9.0) (4.0) (0.6) 0.0 0.9 (2.6)
Severe downside
Gross domestic product 2.8 3.4 1.1 1.3 1.4 2.0
UK Bank Rate 0.03 0.01 0.02 0.03 0.05 0.03
Unemployment rate 8.4 10.0 9.0 8.1 7.4 8.6
House price growth (5.9) (11.7) (10.7) (7.9) (4.1) (8.1)
Commercial real estate price growth (19.8) (11.3) (4.7) (1.0) 1.1 (7.5) (MORE TO FOLLOW) Dow Jones Newswires
April 28, 2021 03:01 ET (07:01 GMT)
