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HELPING BRITAIN PROSPER ESG BOND

Quarterly Investor ReportStatement of Allocation

30 September 2014

Content

Environment, Social and Governance Bond This report is confidential and solely for the use of authorised Lloyds personnel. If you are not authorised, then be advised that any dissemination, distribution, copying or use is strictly prohibited.

Background ............................................................................................................................................................................................................... 3

Eligible Assets ........................................................................................................................................................................................................... 4

Callouts...................................................................................................................................................................................................................... 5

Overall Allocation Summary ...................................................................................................................................................................................... 6

Allocation by Most Economically Disadvantaged Areas ............................................................................................................................................ 7

Allocation by Healthcare ............................................................................................................................................................................................ 8

Allocation by Regional Growth Fund ......................................................................................................................................................................... 9

Allocation by Renewable Energy ............................................................................................................................................................................. 10

Appendices .............................................................................................................................................................................................................. 11

Appendix A – Reporting Criteria ........................................................................................................................................................................... 12

Appendix B – PWC Assurance Report ................................................................................................................................................................. 23

Background

The £250 million ESG bond was issued on the 9th July 2014 and loans attributed to the bond meet eligibility criteria discussed and agreed with our sustainability partner as well as our investors.

A process to identify all loans to SME’s from Lloyds’ systems has been put in place. These loans then undergo 3 tiers of eligibility criteria resulting in amounts allocated to the above key performance indicators.

Tier 1: Exclusionary CriteriaLloyds’ will categorise organisations it has lent money to by Standard Industrial Classification (“SIC”) code. The SIC is a system for classifying industries by a four-digit code. Lloyds has agreed a list of SIC code with its sustainability partner, sustainalytics, which covers the sectors to be excluded

Tier 2: Governance/Responsible Lending Criteria 1. Lending and transactions must in compliant with Lloyds’ code of business responsibility and 2. Lending and transactions must be in compliance with Lloyds’ SME charter.

Tier 3: Environmental and Social CriteriaSMEs or agricultural enterprises that pass through Tiers 1 and 2 criteria will qualify for the proceeds of the ESG bond if they fulfil one or more of the following criteria:

1.SME is located in the 30% most economically disadvantaged areas of the UK. 2. Healthcare providers located in the 30% most disadvantaged areas of the UK. 3. Enterprises which are part of the UK’s regional growth fund (“RGF”) 4. Small scale renewable project, projects that increase energy efficiency or climate change resilience (including flood recovery) of operations.

Loan AllocationAll loans allocated to the bond represent new to bank lending from bond issue date. To avoid any confusion this means any new lending applications by existing or new qualifying customers. For clarity it should be noted that the actual amount lent is considered as opposed to what has been committed. As a result all drawings and repayments are considered.

This report is confidential and solely for the use of authorised Lloyds personnel. If you are not authorised, then be advised that any dissemination, distribution, copying or use is strictly prohibited.

Environment, Social and Governance Bond

Eligible AssetsPeriod : 09-Jul-2014 To 30-Sep-2014

Total Allocation of eligible loans allocated as at 30th September 2014

£116.6 million

Economically Disadvantaged

Areas

allocated to 30% most economically disadvantaged areas *

£112.0 million

Health Care allocated to health care providers located within the 30% most economically disadvantaged areas *

£7.9 million

Regional Growth Fund lent to customers who have been awarded grants through

the regional growth fund *£5.5 million

Renewable Energy allocated to small scale renewable energy projects *

£0.8 million

* Lending can meet one or more of the above eligible assets. For instance, healthcare is a subset of economically disadvantaged areas. For attribution by eligible asset, please see breakdown on page 6.- indicator has been subject to independent assurance. PwC's assurance report can be found in appendix 2.

Environment, Social and Governance BondThis report is confidential and solely for the use of authorised Lloyds personnel. If you are not authorised, then be advised that any dissemination, distribution, copying or use is strictly prohibited.

CalloutsPeriod : 09-Jul-2014 To 30-Sep-2014

46.6% - £116.6 million of eligible loans allocated as at 30th September 2014.- a total of 789 qualifying loans in 17 industrial sectors.

… of £250 million ESG bond proceeds allocated

96% - £112 million allocated covering 74% of the UK postcode areas.- lending well dispersed across UK's 30% most economically disadvantaged regions.

… of lending is to the most economically disadvantaged areas within the UK

£7.9m - a total of 29 qualifying customers, a majority of which are within the dental practices sector.- lending dispersion is positively skewed to most economically disadvantaged areas.

… of lending to healthcare providers located in disadvantaged areas

163 - £5.5 million of eligible loans.- 18 qualifying loans split between Hire Purchase Agreements and outright Lending.

… jobs created or saved through lending supported by the regional growth fund

2 - £0.8 million of lending supporting farmers investing in Wind and Biomass Projects.- Support to 2 customers investing in 2 Wind Turbines and up to 4 Biomass boilers.

… Renewable energy loans



Overall Allocation SummaryPeriod : 09-Jul-2014 To 30-Sep-2014

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102.45

0.82

3.82

0.00Deprived

Area

Renewable EnergyHealthcare

Regional Growth

Fund

7.86

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1.66

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• £116.6 million of eligible loans allocated as at 30th September 2014.• Lending within each criteria with some overlap.• Average loan per customer equates to £156k.

• A total of 789 qualifying loans across 17 industrial sectors.• Lending in 89 of 121 postcode areas.

£250 million ESG bond issued on the 9th July 2014. This bond matures on the 9th December 2018 and pays 2.75% fixed coupon semi annually

Regional Loan Allocation by Value

(£ Millions)0 - 0.50.5 - 11 - 5

5 - 1010 +

Loan Value by Criteria ( £ Millions)



Allocation by Most Economically Disadvantaged Areas Period : 09-Jul-2014 To 30-Sep-2014

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• £112 million of eligible loans allocated as at 30th September 2014.• Lending positively skewed to most disadvantaged areas.

• Good representation of Lending across disadvantaged areas.• Lending to 733 customers across 88 postcode areas covering 17 industrial sectors.

SMEs located in the 30% most economically disadvantaged areas of the UK. Disadvantaged areas are determined using the Index of Multiple Deprivation ("IMD") published by the Office of National Statistics

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Num

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Loan Value No of Loans

Deprived Area by Segment


(£ Millions)0 - 0.50.5 - 11 - 55 - 1010 +



Allocation by HealthcarePeriod : 09-Jul-2014 To 30-Sep-2014

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• 86% of lending is within the Human Health sector.• £7.9 million lent to 29 customers.

• Lending in 25 postcode areas.• Lending evenly dispersed across disadvantage areas.• Dental practice activities received 48% of total amount lent to healthcare providers.

The methodology to identify health care providers is based on SIC Codes. All sectors within Human Health and Social Work activities are considered

3,768,846

1,740,436

30,450

1,212,00055,850 638,699

411,745

Dental pract ice act ivit ies General medical pract ice act ivit iesHospital act ivit ies M edical nursing home act ivit iesOther human health act ivit ies Other resident ial care act ivit iesSocial work act ivit ies without accommodation

Loans by Health Sector


(£ Millions)0 - 0.50.5 - 11 - 55 - 1010 +


Allocation by Regional Growth FundPeriod : 09-Jul-2014 To 30-Sep-2014

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• Lending in association with the RGF created a direct impact in terms of job creation by creating or saving 163 jobs.

• £5.5 million lent to 18 customers across 13 postcode areas.• £1.1 million in grants provided to customers.

The Regional Growth Fund ("RGF") is a government scheme to increase employment and is targeted towards SMEs who lack sufficient deposit to meet normal commercial lending requirements

Regional Jobs Created and Safeguarded

Jobs0 - 5

5 - 1010 - 2020 - 30

30 +

Type No. of Jobs

Created

No. of Jobs Saved

Asset Value No. of Loans

HP

Loans

28 18

32 85

3,948,584

3,635,500

11

7

Total 60 103 7,584,084 18

RGF Grant

454,824

690,600

1,145,424

Loan Value

3,192,512

2,278,866

5,471,378



Allocation by Renewable EnergyPeriod : 09-Jul-2014 To 30-Sep-2014

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• Lending to support 2 projects:Wind and Biomass.

• Wind power is used as a means of generating electricity. Lending will be used for 2 Wind Turbines each delivering 60kw for own consumption.• Biomass Energy is produced from organic matters (burning of wood as an example). Lending will be used to purchase up to 4 Biomass Boilers.

Supporting projects where energy comes from sources which are naturally replenished

Loan Value by Type

250,000

565,000

Biomass Wind


(£ Millions)0 - 0.50.5 - 11 - 55 - 1010 +


Appendices



Appendix A - Reporting Criteria



Appendix A – Reporting Criteria


Content

1. Introduction ........................................................................................................................................................................................................ 14

1.1 Period covered by the data .......................................................................................................................................................................... 14

1.2 Scope and Organisation Boundary for ESG Reporting ................................................................................................................................ 14

2. Selected Key Performance Indicators ................................................................................................................................................................ 14

3. Background ........................................................................................................................................................................................................ 14

4. Total amount of lending to Small and Medium sized enterprises (“SMEs”) in the most economically disadvantaged areas.............................. 16

5. Total amount of lending to Health Care Providers in the most disadvantaged areas ......................................................................................... 17

6. Total amount of lending to participants of the Regional Growth Fund ................................................................................................................ 19

7. Total amount of lending to small scale renewable energy projects .................................................................................................................... 21

8. Tier 1: Exclusionary Criteria ............................................................................................................................................................................... 22



1. Introduction The Reporting Criteria document details the approach and scope used to report key indicators in Lloyds Banking Group’s Helping Britain Prosper ESG Bond: Quarterly Investor report. 1.1 Period covered by the data The period in scope is from bond issue (9th July 2014) to 30th September 2014. 1.2 Scope and Organisation Boundary for ESG Reporting The scope covers the investors as well as the loans attributed to the bond which have been issued by Lloyds Banking Group and meet numerous eligibility criteria . 2. Selected Key Performance Indicators

1. Total amount allocated to the bond issue. 2. Total amount of lending to Small and Medium sized enterprises (“SMEs”) in the most economically disadvantaged areas. 3. Total amount of lending to Heath Care Providers in the most economically disadvantaged areas. 4. Total amount of lending to participants of the regional growth fund. 5. Total amount of lending to small scale renewable energy projects.

3. Background The £250 million ESG bond was issued on the 9th July 2014 and loans attributed to the bond meet eligibility criteria discussed and agreed with our sustainability partner as well as our investors.

A process to identify all loans to SME’s from Lloyds’ systems has been put in place. These loans then undergo 3 tiers of eligibility criteria resulting in amounts allocated to the above key performance indicators.



Tier 1: Exclusionary Criteria

Lloyds’ will categorise organisations it has lent money to by Standard Industrial Classification (“SIC”) code. The SIC is a system for classifying industries by a four-digit code. Lloyds has agreed a list of SIC code with its sustainability partner, sustainalytics, which covers the sectors to be excluded

Tier 2: Governance/Responsible Lending Criteria

1. Lending and transactions must in compliant with Lloyds’ code of business responsibility and 2. Lending and transactions must be in compliance with Lloyds’ SME charter.

Tier 3: Environmental and Social Criteria

SMEs or agricultural enterprises that pass through Tiers 1 and 2 criteria will qualify for the proceeds of the ESG bond if they fulfil one or more of the following criteria:

1. SME is located in the 30% most economically disadvantaged areas of the UK. 2. Healthcare providers located in the 30% most disadvantaged areas of the UK. 3. Enterprises which are part of the UK’s regional growth fund (“RGF”) 4. Small scale renewable project, projects that increase energy efficiency or climate change resilience (including flood recovery) of

operations.

Loan Allocation

All loans allocated to the bond represent new to bank lending during the abovementioned period. To avoid any confusion this means any new lending applications by existing or new qualifying customers. For clarity it should be noted that the actual amount lent is considered as opposed to what has been committed. As a result all drawings and repayments are considered.



4. Total amount of lending to Small and Medium sized enterprises (“SMEs”) in the most economically disadvantaged areas Definition This Key Performance Indicator (“KPI”) measures the amount of lending to SME’s in the most economically

disadvantaged areas of the UK. Scope The KPI applies to all lending across the UK

It covers the period from 9th July 2014 to 30th September 2014 Units Total amount of Lending (£) drawn during the abovementioned period. Method The total amount of new lending drawn during the above period by SME customers

Lending from our core systems (“ACBS” and “CAP”) covering both fixed and floating rate lending as well as Hire Purchase Agreements sourced from our Commercial Finance team has been retrieved and filtered to ensure compliance with Tier 1 and Tier 2 Criteria. All data is considered and where data quality is an issue such loans are suspended pending further analysis. Tier 1 filtering is based on excluding lending to companies within certain industrial sectors. A defined set of Standard Industrial Classification (“SIC”) codes agreed with our sustainability partner (Systainalytics) is used. These can be found in the Appendix (section 8.1) Tier 2 filtering is based on responsible lending and covers compliance with Lloyds’ code of business responsibility and SME charter. Such compliance is monitored through various businesses as usual governance committees. In addition to this a qualifying sample of eligible loans is distributions to the front line to attest compliance. The remaining population is filtered to ensure compliance with our Tier 3 criteria, which, in the case of this KPI, identifies lending to SMEs in the most economically disadvantaged areas. This KPI relates to lending in the 30% most economically disadvantaged areas of the UK. To determine all loans eligible, the post code for each loan is mapped to the Index of Multiple Deprivation and the bottom 30% of postcodes are used to create this KPI.

Source Lending activity has been sourced from our core systems. Hire Purchase Agreements has been sourced from our Commercial Finance Team The most economically disadvantaged area has been defined using the Index of multiple deprivation (“IMD”) published by the Office for National Statistics (”ONS”).



5. Total amount of lending to Health Care Providers in the most disadvantaged areas Definition This Key Performance Indicator (“KPI”) monitors the amount of lending to Health Care Providers within the most

economically disadvantaged areas of the UK. Scope The KPI applies to all lending across post code areas within the UK

It covers the period from 9th July 2014 to 30th September 2014 Units Total amount of Lending drawn during the abovementioned period. Method The total amount of new lending drawn during the above period by SME customers

Lending from our core systems (“ACBS” and “CAP”) covering both fixed and floating rate lending as well as Hire Purchase Agreements sourced from our Commercial Finance team has been retrieved and filtered to ensure compliance with Tier 1 and Tier 2 Criteria. All data is considered and where data quality is an issue such loans are suspended pending further analysis. Tier 1 filtering is based on excluding lending to companies within certain industrial sectors. A defined set of Standard Industrial Classification (“SIC”) codes agreed with our sustainability partner (Systainalytics) is used. These can be found in the Appendix (section 8.1) Tier 2 filtering is based on responsible lending and covers compliance with Lloyds’ code of business responsibility and SME charter. Such compliance is monitored through various businesses as usual governance committees. In addition to this a qualifying sample of eligible loans is distributions to the front line to attest compliance. The remaining population is filtered to ensure compliance with our Tier 3 criteria. This KPI relates to lending in

a. The 30% most economically disadvantaged areas of the UK. To determine all loans eligible, the post code for each loan is mapped to the Index of Multiple Deprivation.

b. Health Care Providers. To determine qualifying Health Care Providers, SIC codes have been used covering sectors within the Human Health and Social Work.

Source Lending activity has been sourced from our core systems.



Hire Purchase Agreements has been sourced from our Commercial Finance Team The most economically disadvantaged area has been defined using the Index of multiple deprivation (“IMD”) published by the Office for National Statistics (”ONS”). The 2007 SIC Codes for Human Health and Social Work have been used.

Section Q: Human Health and Social Work Activities Division 86: Human Health Activities Division 87: Residential Care Activities Division 88: Social work Activities without accommodation



6. Total amount of lending to participants of the Regional Growth Fund Definition This Key Performance Indicator (“KPI”) monitors the amount of lending to participants of the Regional Growth Fund

(“RGF”). Scope The KPI applies to all lending that meets the criteria of the Department for Business, Innovation & Skills scheme. Grants

are awarded to qualifying companies for asset purchases by SMEs that lack sufficient deposit to meet Lloyd’s normal lending requirements. London is excluded from the RGF and only 8% of allocated grants can be in the South East England so as to promote employment in areas where it is most required. Lloyds can contribute up to 20% of the value of assets purchased by qualifying SMEs. It covers the period from 9th July 2014 to 30th September 2014

Units Total amount of Lending drawn during the abovementioned period. Method The total amount of new lending drawn during the above period by SME customers

Lending from our core systems (“ACBS” and “CAP”) covering both fixed and floating rate lending as well as Hire Purchase Agreements sourced from our Commercial Finance team has been retrieved and filtered to ensure compliance with Tier 1 and Tier 2 Criteria. All data is considered and where data quality is an issue such loans are suspended pending further analysis. Tier 1 filtering is based on excluding lending to companies within certain industrial sectors. A defined set of Standard Industrial Classification (“SIC”) codes agreed with our sustainability partner (Systainalytics) is used. These can be found in the Appendix (section 8.1) Tier 2 filtering is based on responsible lending and covers compliance with Lloyds’ code of business responsibility and SME charter. Such compliance is monitored through various businesses as usual governance committees. In addition to this a qualifying sample of eligible loans is distributions to the front line to attest compliance. The remaining population is filtered to ensure compliance with our Tier 3 criteria.



This KPI relates to two types of lending a. Outright lending for asset purchases that have been approved for grants. These loans are booked to core systems,

ACBS and CAP. b. Assets purchased through Hire Purchase Agreements. These loans are appended to the dataset as lending

administered through out Commercial Finance Teams. The above qualifying drawn loans are mapped to the SME inventory sourced from core systems or appended (in the case of Hire Purchase Agreements) following confirmation that such lending has taken place by our Commercial Finance Team.

Source Lending activity has been sourced from our core system or confirmed by Commercial Finance. Hire Purchase Agreements has been sourced from our Commercial Finance Team A complete view of RGF activity is received from the Specialist Business Lending Unit. This covers both types of lending mentioned above.



7. Total amount of lending to small scale renewable energy projects Definition This Key Performance Indicator (“KPI”) monitors the amount of lending to small scale renewable energy projects. Scope The KPI applies to all lending related to small renewable energy projects

Lloyd’s provide loans to help SMEs in the agricultural sector to undertake small-scale renewable energy projects including (but not restrictive to) wind, solar, hydro and anaerobic digestion. It covers the period from 9th July 2014 to 30th September 2014

Units Total amount of Lending drawn during the abovementioned period. Method The total amount of new lending drawn during the above period by SME customers

Lending from our core systems (“ACBS” and “CAP”) covering both fixed and floating rate lending as well as Hire Purchase Agreements sourced from our Commercial Finance team has been retrieved and filtered to ensure compliance with Tier 1 and Tier 2 Criteria. All data is considered and where data quality is an issue such loans are suspended pending further analysis. Tier 1 filtering is based on excluding lending to companies within certain industrial sectors. A defined set of Standard Industrial Classification (“SIC”) codes agreed with our sustainability partner (Systainalytics) is used These can be found in the Appendix (section 8.1) Tier 2 filtering is based on responsible lending and covers compliance with Lloyds’ code of business responsibility and SME charter. Such compliance is monitored through various businesses as usual governance committees. In addition to this a qualifying sample of eligible loans is distributions to the front line to attest compliance. The remaining population is filtered to ensure compliance with our Tier 3 criteria. The above qualifying drawn loans from the data provided by the SME Banking Credit team are mapped to the SME inventory sourced from core systems, to enable qualifying loans to be clearly attributed to the bond.

Source Lending activity has been sourced from our core systems Hire Purchase Agreements has been sourced from our Commercial Finance Team A summary view of qualifying SME activity received from the SME banking credit team.



8. Tier 1: Exclusionary Criteria Exclusionary Criteria SIC 2007 Code Description Alcohol 46342 Wholesale of wine, beer, spirits and other alcoholic beverages Alcohol 11010 Distilling, rectifying and blending of spirits Gambling 92000 Gambling and betting activities Tobacco 01150 Growing Tobacco Tobacco 12000 Manufacture of tobacco products Tobacco 46350 Wholesale of tobacco products Tobacco 47260 Retail sale of tobacco products in specialised store Military Weapons 30400 Manufacture of military fighting vehicles Military Weapons 25400 Manufacture of weapons and ammunition Payday Lending 64999 Financial Intermediation Payday Lending 64929 Other Credit Granting Payday Lending 64921 Specialist consumer credit grantors Fossil Fuels 05101 Deep coal mines Fossil Fuels 05102 open cast coal mines Fossil Fuels 05200 mining of lignite Fossil Fuels 06100 extraction of crude petroleum Fossil Fuels 06200 extraction of natural gas Fossil Fuels 08920 extraction of peat Fossil Fuels 20110 manufacture of industrial gases Fossil Fuels 19100 manufacture of coke oven products

Appendix B - PWC Assurance Report



Independent Limited Assurance Report to the Directors of Lloyds Banking Group plc

The Board of Directors of Lloyds Banking Group plc (“LBG) engaged us to provide limited assurance on the information described below and set out in LBG’s QuarterlyInvestor Report, Statement of Allocation as at 30 September 2014.

Our conclusion

Based on the procedures we have performed and the evidence we have obtained,

nothing has come to our attention that causes us to believe that the Selected

Information as at 30 September 2014 has not been prepared, in all material respects,

in accordance with the Reporting Criteria.

This conclusion is to be read in the context of what we say in the remainder of our report.

Selected Information

The scope of our work was limited to assurance over the information marked with the symbol in

LBG’s Quarterly Investor Report, Statement of Allocation as at 30 September 2014 (the “Selected

Information”).

The Selected Information and the Reporting Criteria against which it was assessed are summarised in

the table below. Our assurance does not extend to information in respect of earlier periods or to any

other information included in the Quarterly Investor Report, Statement of Allocation as at 30

September 2014.

Selected Information Reporting Criteria

Total eligible loans allocatedSection 3*

Total allocated to 30% mosteconomically disadvantaged areas

Section 4*

Total allocated to heath careproviders located within the 30%most economically disadvantagedareas

Section 5*

Total lending to customers whohave been awarded grants throughthe regional growth fund

Section 6*

Total allocated to small scalerenewable energy projects

Section 7*

* Sections referred to in the table above refer to the Reporting Criteria as set out on pages 13 to 22 of

LBG’s Quarterly Investor Report, Statement of Allocation as at 30 September 2014.

Professional standards applied and level of assurance

We performed a limited assurance engagement in accordance with International Standard on

Assurance Engagements 3000 ‘Assurance Engagements other than Audits and Reviews of Historical

Financial Information’ issued by the International Auditing and Assurance Standards Board. A

limited assurance engagement is substantially less in scope than a reasonable assurance engagement

in relation to both the risk assessment procedures, including an understanding of internal control,

and the procedures performed in response to the assessed risks.

Our Independence and Quality Control

We applied the Institute of Chartered Accountants in England and Wales (ICAEW) Code of Ethics,

which includes independence and other requirements founded on fundamental principles of

integrity, objectivity, professional competence and due care, confidentiality and professional

behaviour.

We apply International Standard on Quality Control (UK & Ireland) 1 and accordingly maintain a

comprehensive system of quality control including documented policies and procedures regarding

compliance with ethical requirements, professional standards and applicable legal and regulatory

requirements

Our work was carried out by an independent and multi-disciplinary team with experience in

sustainability reporting and assurance.

Understanding reporting and measurement methodologies

The Selected Information needs to be read and understood together with the Reporting Criteria,

which LBG is solely responsible for selecting and applying. The absence of a significant body of

established practice on which to draw to evaluate and measure non-financial information allows for

different, but acceptable, measurement techniques and can affect comparability between entities and

over time. The Reporting Criteria used for the reporting of the Selected Information are as at 14

November 2014.

Work done

We are required to plan and perform our work in order to consider the risk of material misstatement

of the Selected Information. In doing so, we:

• made enquiries of LBG’s management and those with responsibility for the Quarterly Investor

Report, Statement of Allocation as at 30 September 2014;

• evaluated the design of the key structures, systems, processes and controls for managing, recording

and reporting the Selected Information. This included analysing a limited number of loans,

selected on the basis of their inherent risk and materiality to the group, to understand the key

processes and controls for reporting the selected information;

• performed limited substantive testing on a selective basis of the Selected Information in relation to

a limited number of loans to check that data had been appropriately measured, recorded, collated

and reported; and

• considered the disclosure and presentation of the Selected Information.

LBG’s responsibilities

The Directors of LBG are responsible for:

• designing, implementing and maintaining internal controls over information relevant to the

preparation of the Selected Information that is free from material misstatement, whether due to

fraud or error;

• establishing objective Reporting Criteria for preparing the Selected Information;

• measuring and reporting the Selected Information based on the Reporting Criteria; and

• the content of the Quarterly Investor Report, Statement of Allocation as at 30 September 2014.

Our responsibilities

We are responsible for:

• planning and performing the engagement to obtain limited assurance about whether the Selected

Information is free from material misstatement, whether due to fraud or error;

• forming an independent conclusion, based on the procedures we have performed and the evidence

we have obtained; and

• reporting our conclusion to the Directors of LBG.

This report, including our conclusions, has been prepared solely for the Board of Directors of LBG in

accordance with the agreement between us, to assist the Directors in reporting LBG’s performance

and activities. We permit this report to be disclosed in the Quarterly Investor Report, Statement of

Allocation as at 30 September 2014 to assist the Directors in responding to their governance

responsibilities by obtaining an independent assurance report in connection with the Selected

Information. To the fullest extent permitted by law, we do not accept or assume responsibility to

anyone other than the Board of Directors and LBG for our work or this report except where terms are

expressly agreed between us in writing.

PricewaterhouseCoopers LLP

Chartered Accountants

London

14 November 2014

Important Notice

This presentation, its contents and any related communication (altogether, the “Presentation”): (i) does not constitute or form part of any offer to sell or an invitation to subscribe for, hold orpurchase any securities or any other investment; (ii) shall not form the basis of or be relied on in connection with any transaction, contract or commitment whatsoever; (iii) is provided forinformation purposes only and is not intended to form, and should not form, the basis of any investment decision; (iv) is not and should not be treated as investment research, a researchrecommendation, an opinion or advice; (v) is confidential and has been prepared by, and is subject to the copyright of, Lloyds Bank plc or its affiliates (together, “Lloyds Bank”); (vi) is based onpublic information, and is in summary form and therefore may not be complete; (vii) may refer to future events which may or may not be within the control of Lloyds Bank, and its groupcompanies, and its or their directors, officers, employees, associates and agents (altogether, “Lloyds Persons”), and no representation or warranty, express or implied, is made as to whether ornot such an event will occur; (viii) is subject to change at any time and Lloyds Bank is under no obligation to inform any person of any such change; (ix) may only be sent to recipients who maylawfully receive it in accordance with applicable law, regulation and rule of regulatory body (“Laws”); and (x) is not being distributed to and must not be passed on to the general public in theU.K., and may only be distributed in the U.K. to persons who are investment professionals within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion)order 2005 (the “Order”), or are persons falling within Article 49(2)(a) to (d) of the Order (all such persons being “Relevant Persons”), is directed only at Relevant Persons and must not be actedon or relied on by persons who are not Relevant Persons.

Securities services offered in the United States are offered by Lloyds Securities Inc. (“LSI”), a broker-dealer registered with the U.S. Securities and Exchange Commission and a member of theU.S. Financial Industry Regulatory Authority. LSI services are provided only in the United States.

Lloyds Bank has exercised reasonable care in preparing this Presentation (and in confirming that where any information or opinion in this Presentation is from or based on a third party source,that the source is accurate and reliable), however, no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of the facts contained in thisPresentation by Lloyds Persons. This Presentation may refer to future events which may or may not be within the control of Lloyds Persons, and no representation or warranty, express orimplied, is made as to whether or not such an event will occur. To the fullest extent permitted by Laws, Lloyds Persons accept no responsibility for and shall have no liability for any loss(including without limitation direct, indirect, consequential and loss of profit), damages, or for any liability to a third party however arising in relation to this Presentation (including withoutlimitation in relation to any projection, analysis, assumption and opinion in this Presentation). Lloyds Bank reserves the right to terminate discussions with any recipient in its sole and absolutediscretion at any time and without notice.

By accessing, viewing, attending or reading this Presentation, and by not immediately returning or deleting it, or leaving, you confirm and represent that: (a) you understand and agree to thecontents of this important notice; (b) you are a person that may lawfully receive this Presentation in accordance with Laws applicable to you including those of the jurisdiction in which you arelocated; (c) if you are not located in the U.S., you are not a U.S. Person, as defined in SEC Rule 902 of Regulation S under the U.S. Securities Act 1933, as amended; (d) if you are located in theU.K., you are a Relevant Person; (e) you consent to delivery of this document by electronic transmission; (f) you have or will conduct your own independent enquiries and obtain professionallegal, regulatory, tax and accounting advice as appropriate in relation to the contents of this Presentation; (g) any transaction which you may subsequently enter into will only be on the basis ofyour enquiries and advice, your own knowledge and experience, and on the basis of the documents that relate specifically to that transaction; (h) you will keep this Presentation strictlyconfidential and will not transmit or distribute this Presentation, or any reproduction or translation it, in whole or in part, of this Presentation, to any person without Lloyds Bank’s prior writtenconsent; and (g) you will not use this Presentation to the detriment of Lloyds Bank or for any matter other than in relation to the transaction contemplated in this Presentation.

Lloyds Bank may engage in transactions in a manner inconsistent with any opinion in this Presentation. Lloyds Bank trades or may trade as principal in the securities or related derivativesincluded in this Presentation (“Relevant Securities”), and may have proprietary positions in, and/or may make markets in, Relevant Securities. Lloyds Persons may have an interest in anysecurities or financial product mentioned in this Presentation.Lloyds Bank and Lloyds Bank Commercial Banking are trading names of Lloyds Bank plc. Lloyds Bank and Lloyds Bank Commercial Banking are trading names of Bank of Scotland plc. LloydsBank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ.Registered in Scotland no. SC327000. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority underregistration numbers 119278 & 169628, respectively



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