Lloyds Banking Group Passes Bank of England Stress Test

Lloyds Banking Group has successfully passed the 2025 Bank Capital Stress Test conducted by the Bank of England. Alongside six other UK financial institutions, Lloyds' performance showed resilience under severe conditions, including global supply shocks and geopolitical tensions.

The Group's stressed Common Equity Tier 1 (CET1) ratio stood at 10.9%, while its leverage ratio was 4.6%, both exceeding the minimum requirements of 5.9% and 3.3%. This performance negated the need for any capital actions by Lloyds Banking Group.

The stress test scenario replicated a more severe situation than the last global financial crisis, outlining challenges like rising interest rates and unemployment. Despite these hurdles, Lloyds demonstrated strong capital generation and prudent balance sheet management. The Group remains vigilant, reviewing outcomes from the Financial Policy Committee’s capital review.