Lloyds Banking Group is committed to helping businesses of all shapes and sizes, giving them the funding and support they need to grow at home and abroad. We have set out our pledges in our Helping Britain Prosper Plan

OUR SUCCESSES

Our commitment to backing British Businesses has been recognised with four awards in 2016:-

• Business Bank of the Year for the 12th year in a row at the FD’s Excellence Awards• Evening Standard Business of the Year 2016 award• Euromoney Best Bank in the UK for the fourth year running • Euromoney World’s Best Bank for Adapting to the Regulatory Environment• Best Commercial Finance Provider at the 2016 Credit Today Awards.

SUPPORTING BRITISH BUSINESSES

July 2016

IN NUMBERS

£2.2bn INCREASE IN LENDING TO SMES AND MID MARKET COMPANIES IN THE 12 MONTHS TO JUNE 2016

4% YEAR-ON-YEAR NET GROWTH IN LENDING TO SMES IN THE 12 MONTHS TO JUNE 2016

65,000+ START UPS SUPPORTED IN H1 2016

12% INCREASE IN DEPOSITS ACROSS THE COMMERCIAL BANK IN THE 12 MONTHS TO JUNE 2016

£500m+ FUNDING SUPPORT FOR UK MANUFACTURERS IN 2016

SUPPORT FOR BUSINESS

• We have pledged to increase our lending to SMEs and Mid Market companies on a net basis by more than £2bn during 2016, building on our six years of consistent lending growth, during a time when across the industry, lending has declined.

• In the 12 months to June 2016 we increased our lending to SMEs and Mid Market companies by £2.2bn, on a net basis.

• Since the start of 2011, we have grown our net lending to SMEs by 28%, while the market has contracted by 13%.

HELPING BRITAIN PROSPER • We have updated our SME and Mid Market Charters which includes a number of pledges to help businesses start-up, grow and trade overseas.

• We have helped to provide finance for 220,000 new customers through Black Horse supported car dealerships across the UK in the first six months of 2016.

• In the first half of 2016 we enabled over 50,000 British businesses to use over £450m in working capital through our commercial cards.

• We have pledged to arrange and provide £500m in new funding support for the Social Housing sector in 2016.

• As part of a consortium we have contributed to over £2bn in funding to support the construction of the Beatrice Offshore Wind Farm in the Outer Moray Firth in Scotland.

• We have organised funding for four leading UK universities including a £250m bond deal for Leeds University to upgrade its facilities.

• We have expanded the Housing Growth Partnership together with Kier Living and Cheyne Capital to create the New Communities Partnership. The alliance plans to provide access to funds worth up to £1bn to build around 10,000 new homes.

• Our Business Support Unit (BSU) is continuing to help businesses in financial difficulties. In the first six months of 2016 it helped more than 386 businesses onto a sounder financial footing and protected over 24,000 jobs.

MARKET INSIGHT AND ECONOMIC EXPERTISE

• We have teams across the country with local expertise and sector knowledge from manufacturing, professional services to healthcare and agriculture.

• In June 2016 we published the Oil & Gas Report, the fifth annual Bank of Scotland report on the industry, analysing the state of the sector today and the challenges it faces in the future. The report showed that oil and gas

firms are responding to the challenges in the sector with almost half planning further cost cutting to help manage the impact of the downturn in the sector.

• We understand the importance of economic insight and track businesses’ confidence and activity to help inform business decisions in the current climate. Customers can sign up free of charge at our economics and market insight web pages.

OUR COMMITMENT TO COMMUNITIES

• We have recruited 12,000 Digital Champions to help individuals, small businesses and charities to realise the benefits of the internet and are partnering with Google to run a number of workshops for small businesses throughout 2016.

• We are a principal partner of Doteveryone, the new charity which aims to show how technology can help communities in the future with a focus on increasing digital skills across the UK.

• We will have supported over 1,300 social entrepreneurs to start up or grow their social enterprise by 2017 as part of our five year partnership with the School for Social Entrepreneurs and Big Lottery Fund.

• We are supporting SMEs, including community and social enterprises, through our network of over 400 enterprise mentors, trained through the Business Finance Taskforce accredited scheme.

OUR FINANCIAL SUPPORT FOR BUSINESSES

• Our most senior managers can renew loans of up to £1m and approve new lending of up to £500,000 at their own discretion. Lloyds Bank remains one of the only banks to give local managers this authority.

• We approve eight out of ten loan and overdraft requests – a rate which has been independently verified and remains in line with our long term average.

• Our private equity division, LDC, plays a crucial role in supporting SMEs. LDC is almost twice as active in investing outside London and the Greater South East than the rest of the UK private equity sector, underlining its contribution to rebalancing the economic growth and employment by region.

• LDC remains committed to its three-year pledge to invest £1.2bn in the UK’s small and mid-market companies. In the 12 months to June 2016 LDC invested £333m in 16 companies reaffirming its position as

one of the most committed and active private equity investors in the UK market.

• Our Farmers' Fund has provided our agricultural clients with £245m for their working capital needs, to help them mitigate problems associated with flooding or a delay in receiving money from the EU Basic Payments Scheme.

• We have supported over 6,600 loans, worth more than £568m, through the Enterprise Finance Guarantee (EFG) Scheme, where the Government provides a guarantee to the bank when a client lacks the necessary security for a normal loan.

• We are helping to boost UK productivity through the Lloyds Bank Advanced Manufacturing Training Centre in Coventry. Our investment of £5m over five years into the state-of-the-art training facility will support over 500 apprentices and help address the UK manufacturing sector’s skills gap.

• We have also pledged to support a further 100,000 start-ups get off the ground in 2016.

HELPING BRITAIN GLOBALLY

• We bank over 80% of the FTSE 100, with offices across Europe, North America and Asia to help strengthen investment into the UK.

• We are working closely with UKTI to support the UK’s export ambitions to provide insight and introductions for businesses looking at overseas markets.

• We are supporting the Government’s aim to help 100,000 businesses export for the first time, as part of its Exporting is GREAT campaign. We have pledged to help a total of 25,000 exporters by 2020.