Lloyds Banking Revises Capital Guidance - Quick Facts

(RTTNews) - Lloyds Banking Group plc (LLOY.L, LYG) said Wednesday that it has been notified by the Prudential Regulation Authority or PRA that the Systemic Risk Buffer for the Group's Ring Fenced Bank will be 200 basis points, which equates to 170 basis points at a Group level.

However, this is less than the 210 basis points previously included in the Group's capital guidance following action to manage the size of the Ring Fenced Bank.

The company noted that the decrease in the Systemic Risk Buffer follows the net 30 basis point reduction in the Group's Pillar 2A, as announced to the market in 2018 and with effect from 1 January 2019.

Due to these decreases, the Board's view of the level of common equity tier 1 or CET1 capital targeted by the Group has reduced from around 13 percent previously to around 12.5 percent, while maintaining a management buffer of around 1 percent to the targeted level.

However, the Group continues to expect ongoing capital build of 170 basis points to 200 basis points per year.

Lloyds also said it will continue to give consideration to the distribution of surplus capital at the end of the year.