Lloyds Banking : AGM Q&A summary

Classification: Public

2024AnnualGeneralMeeting('AGM')

LloydsBankingGroup(the'Company')

SummaryofQuestionsandAnswers

Below is a summary of the questions asked and answers given on various themes at the 2024 AGM held at the SEC Armadillo, Exhibition Way, Glasgow, G3 8YW on Thursday, 16 May 2024 at 11.00 am.

Please note that this document does not constitute a transcript of the questions asked and answers given and does not include questions on individual customer matters.

To the extent that this document contains any forward-looking statements, reference should be made to the related text at pages 4 and 5.

Sustainability / ESG

Question: Could the Group make a structured move into the sustainable fuel generation industry (not through third parties, but for example by an LBG entity directly owning infrastructure or distribution channels)?

Answer: As an organisation, we see many opportunities from the road that we're on to net zero and we are determined to take those opportunities. We believe direct distribution of fuel would probably go beyond the normal activities of a bank, so there are certainly no plans for that at present. We are looking to take advantage of the opportunities that come with the decarbonisation process that is underway at the moment.

Question: Will Lloyds report annually on outcomes from its review of oil and gas clients? Will Lloyds disclose a date by which all oil and gas transition plans must be 1.5 degrees aligned, including a clear red line on further expansion?

Answer: In relation to new oil and gas licenses, we have already stated that we will not give direct finance to new oil and gas installations; and we were the first bank to do that. We have also said that we will talk to our oil and gas clients about their transition plans and that's been clearly set out in the plan referred to by the Chair of our Responsible Business Committee. In terms of transparency and more detailed disclosure, that is currently being discussed amongst a broad set of businesses; we are aware that we need to balance transparency with practicality.

Question: Will Lloyds commit to providing more transparent and granular methodologies in its sustainability report in 2025?

Answer: We're very proud that our disclosures are very much in line with best practice. There are more detailed disclosures around methodologies on our website, but we will of course make sure that we continue to keep up with what is an ever-growing trend of disclosure / granularity, and we will make sure that we stay totally up to speed with that.

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Classification: Public

Diversity, Equity & Inclusion

Question: With regard to building an inclusive society and recruitment, is it appropriate for the Group to ask prospective employment candidates for current salary details and to apply desirable criteria, given that this might discourage applications?

Answer: We take inclusivity very seriously; that is why we have set targets and we hold the senior management to account for achieving them. It is very important to us and we see it as an important part of our commercial business, not just about being fair, which is also obviously important.

Question: Does the increased focus on Diversity, Equity & Inclusion shift focus from the core business and the value it creates for customers and shareholders?

Answer: We see this as really important for our business. There are pools of talent that simply have not been tapped into in the UK for far too long. We think it's really important that a business like Lloyds actually accesses the whole of that talent. The second reason is that, as we have 27 million customers who are a very diverse cross-section of the UK, it's really important that we have people in the organisation that understand the experiences of all those customers. So we don't see this just as a fairness issue. We see it as a very important commercial issue. We believe that it's really important to our long-term sustainable future that we have a breadth of people in our workforce.

Question: How much will the Bank save if it dispenses with its HR and Diversity, Equity & Inclusion Units (including savings in salaries, national insurance, pension contributions office space and equipment); and how many branches could be funded from that saving?

Answer: We believe an HR department, and our diversity efforts, are very valuable from a business perspective and an essential part of what we're trying to do. We are not considering closing or ending them, so it is not appropriate to consider what costs might or might not be saved.

Access to Housing

Question: How much does the Group invest in the social housing sector in the UK generally and how important is Scotland in that context?

Answer: As the Chair of our Responsible Business Committee mentioned, we are very proud to be the largest supporter of social housing in the UK, with £17bn invested since 2018. We continue to work with all the key housing associations. The Board had a dinner with a group of customers the evening before the AGM, including representatives of virtually all of the largest Scottish housing associations. We have a very strong relationship with them, and it's a fundamental part of what Bank of Scotland does.

Question: Could a requirement be introduced that about 10% of housebuilding should relate to bungalows, so that elderly people can move from properties that have become too big for their needs?

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Classification: Public

Answer: Affordable housing is something that we are, and the Group Chief Executive is personally, very focused on. The call for the building of a million new genuinely affordable homes over the next ten years is an important part of our partnership with Crisis. We agree that the recycling of housing so that people can live in what works for them is a really important part of making sure that housing gets freed up as well as gets used properly. We are very focused on that agenda.

Community and Customers

Question: How can customers, particularly the elderly, who do not have a mobile phone, or an internet connection to use mobile apps, still access banking services once their local branch has been closed and any mobile service has been withdrawn?

Answer: We are very careful when we take actions such as closing any branch or mobile service to make sure that not only is that being done for a reason (generally because of lack of use of that facility), but also that there are adequate replacement services. We have to do what is right for our broader customer base and increasingly our customers want to engage with us in different ways than through branches.

Question: From a strategic perspective, how does the Board intend to make sure that the Group is inclusive towards an aging population, given their struggle to keep up with a rapid growth in technology, including apps?

Answer: This is something we are very focused on. In fact recently we've started to encourage our branch colleagues to invite customers to bring in their devices so colleagues can help explain how best to do things on those devices. Equally, we fully understand that's not possible for everyone; and that's why we think very carefully about branch closures to make sure that we remain able to provide services to our most vulnerable customers.

De-banking

Question: Can the Group look into avoiding the arbitrary, unjustified or unfair closure of customer accounts?

Answer: It is not our policy to close customers' accounts on grounds of political or personal beliefs; the decision to close customer accounts is generally taken by the Group because they are no longer being used.

Motor Finance Commission Arrangements

Question: Is the provision of £450m against potential costs or liabilities relating to motor finance too low?

Answer: The FCA's review announced in January is still at an early stage. We have made the best possible estimate to arrive at that provision.

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Classification: Public

Forward lookingstatements

This document contains certain forward- looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and section 27A of the US Securities Act of 1933, as amended, with respect to the business, strategy, plans and/or results of Lloyds Banking Group plc together with its subsidiaries (the Group) and its current goals and expectations. Statements that are not historical or current facts, including statements about the Group's or its directors' and/or management's beliefs and expectations, are forward-looking statements. Words such as, without limitation, 'believes', 'achieves', 'anticipates', 'estimates', 'expects', 'targets', 'should', 'intends', 'aims', 'projects', 'plans', 'potential', 'will', 'would', 'could', 'considered', 'likely', 'may', 'seek', 'estimate', 'probability', 'goal', 'objective', 'deliver', 'endeavour', 'prospects', 'optimistic' and similar expressions or variations on these expressions are intended to identify forward-looking statements. These statements concern or may affect future matters, including but not limited to: projections or expectations of the Group's future financial position, including profit attributable to shareholders, provisions, economic profit, dividends, capital structure, portfolios, net interest margin, capital ratios, liquidity, risk- weighted assets (RWAs), expenditures or any other financial items or ratios; litigation, regulatory and governmental investigations; the Group's future financial performance; the level and extent of future impairments and write-downs; the Group's ESG targets and/or commitments; statements of plans, objectives or goals of the Group or its management and other statements that are not historical fact and statements of assumptions underlying

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such statements. By their nature, forward- looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that will or may occur in the future. Factors that could cause actual business, strategy, targets, plans and/or results (including but not limited to the payment of dividends) to differ materially from forward- looking statements include, but are not limited to: general economic and business conditions in the UK and internationally; acts of hostility or terrorism and responses to those acts, or other such events; geopolitical unpredictability; the war between Russia and Ukraine; the conflicts in the Middle East; the tensions between China and Taiwan; political instability including as a result of any UK general election; market related risks, trends and developments; changes in client and consumer behaviour and demand; exposure to counterparty risk; the ability to access sufficient sources of capital, liquidity and funding when required; changes to the Group's credit ratings; fluctuations in interest rates, inflation, exchange rates, stock markets and currencies; volatility in credit markets; volatility in the price of the Group's securities; tightening of monetary policy in jurisdictions in which the Group operates; natural pandemic and other disasters; risks concerning borrower and counterparty credit quality; risks affecting insurance business and defined benefit pension schemes; changes in laws, regulations, practices and accounting standards or taxation; changes to regulatory capital or liquidity requirements and similar contingencies; the policies and actions of governmental or regulatory authorities or courts together with any resulting impact on the future structure of the Group; risks

Classification: Public

associated with the Group's compliance with a wide range of laws and regulations; assessment related to resolution planning requirements; risks related to regulatory actions which may be taken in the event of a bank or Group failure; exposure to legal, regulatory or competition proceedings, investigations or complaints; failure to comply with anti-money laundering, counter terrorist financing, anti-bribery and sanctions regulations; failure to prevent or detect any illegal or improper activities; operational risks including risks as a result of the failure of third party suppliers; conduct risk; technological changes and risks to the security of IT and operational infrastructure, systems, data and information resulting from increased threat of cyber and other attacks; technological failure; inadequate or failed internal or external processes or systems; risks relating to ESG matters, such as climate change (and achieving climate change ambitions) and decarbonisation, including the Group's ability along with the government and other stakeholders to measure, manage and mitigate the impacts of climate change effectively, and human rights issues; the impact of competitive conditions; failure to attract, retain and develop high calibre talent; the ability to achieve strategic objectives; the ability to derive cost savings and other benefits including, but without limitation, as a result of any acquisitions, disposals and other strategic transactions; inability to capture accurately the expected value from acquisitions; assumptions and estimates that form the basis of the Group's financial statements; and potential changes in dividend policy. A number of these influences and factors are beyond the Group's control. Please refer to the latest Annual Report on Form 20-F filed by Lloyds Banking Group plc with the US Securities and Exchange Commission (the SEC), which is available on

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the SEC's website at www.sec.gov, for a discussion of certain factors and risks. Lloyds Banking Group plc may also make or disclose written and/or oral forward-looking statements in other written materials and in oral statements made by the directors, officers or employees of Lloyds Banking Group plc to third parties, including financial analysts. Except as required by any applicable law or regulation, the forward-looking statements contained in this document are made as of today's date, and the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward- looking statements contained in this document whether as a result of new information, future events or otherwise. The information, statements and opinions contained in this document do not constitute a public offer under any applicable law or an offer to sell any securities or financial instruments or any advice or recommendation with respect to such securities or financial instruments.