Our year-on-year net growth in advances to SMEs was 4% at the end of March 2015, while across the industry there was a net reduction of 2%.

In our Helping Britain Prosper Plan we have pledgedto grow our SME lending by at least £1 billion net every year until the end of 2017. In the 12 months to March 2015 we provided £1.1 billion net lending to SMEs.

In 2014 we set a target to lend an additional £4 billion to manufacturing businesses over the four years to December 2017. At the end of Q1 2015 we had provided £1.30bn against this pledge.

We have published all our lending data for SMEs, mortgages and personal lending by postcode sectors across the UK. It can be found on our website throughour postcode lending calculator.

IN NUMBERS

3,300+JOBS PROTECTED THROUGH OUR BUSINESS SUPPORT UNIT IN Q1 2015.

4%YEAR-ON-YEAR NET GROWTH IN ADVANCES TO SMEs.

£1.1bnNET LENDING TO SMEs IN THE LAST 12 MONTHS.

8 out of 10LOAN AND OVERDRAFT REQUESTS APPROVED.

23,000+START-UPS SUPPORTED IN Q1 2015.

OUR FINANCIALSUPPORT FOR SMEs

Ø Unlike many other banks, local decision-

making is an important part of the service that we offer our customers. Our most senior managers can renew loans up to £1 million, and approve new lending of up to £500,000 to existing customers at their own discretion.

Ø We are still approving eight out of ten loan and

overdraft requests – a rate which is independently verifi ed and in line with our long term average.

Ø We offer 18 months free day-to-day

banking for start-ups.

Ø Our charges are transparent. Through our

Monthly PricePlans, customers can pay a simple, fi xed monthly fee to cover their day-to-day banking transactions.

Ø Our private equity division, Lloyds Development

Capital (LDC), plays a crucial role in supporting SMEs. In the 12 months ending March 2015, LDC invested over £300 million in 16 companies. >>

SUPPORT FOR GOVERNMENT SCHEMES

Ø We are continuing to offer competitively priced lending to SMEs in all sectors for the life of their

loans through the Funding for Lending Scheme. During 2014, we grew net lending to SME’s by £1.2 billion, more than any other bank participating in the Funding for Lending Scheme.

Ø We are taking part in a range of other Government schemes designed to help businesses get access to

fi nance, including the Enterprise Finance Guarantee (EFG) Scheme. We have supported over 6,300 EFG loans, worth more than £520 million – around 23% of all loans granted through the scheme so far.

SUPPORTINGBRITISH BUSINESSES

May 2015

Ø We are committed to providing alternative

sources of fi nance for our customers, including asset based lending, trade fi nance and community fi nance. We have a partnership with Greater London Enterprise through which we are providing funding of £5 million, to lend to micro businesses across the Capital. Since the launch of this London Loan Fund in April 2014, 77 micro businesses have so far accessed £1.2m, creating or protecting over 170 jobs.

Ø We work closely with the ‘Angels in the City’

investment community, having joined forces with City of London and London Business Angels.

Ø We are supporting SME house builders with a £50

million equity fund which is designed to help these fi rms access capital for new projects, and ultimately to help tackle the issue of housing supply and affordability.

THE ECONOMIC ENVIRONMENT

Ø Our Business in Britain report (January 2015)

shows that business confi dence fell from its record high in July. However, business expectations for total sales, orders and profi ts in the next six months remain positive and above their long-term average.

Ø Our SME customers still have substantial headroom

on overdrafts. Less than 55% of borrowing facilities are being drawn upon – lower than in 2009.

OUR BROADER SUPPORTFOR SMEs

Ø Through our 2015 SME Charter we have made a

series of pledges to help support our customers.These include:

• A commitment to help 1,000 start-ups become £1 million turnover businesses within three years, contributing at least £1 billion to the British economy.

• A contribution of up to £5 million for an industry fund to improve digital services and comparison websites to help small businesses switch banks and improve the competitiveness of the SME banking market.

• A pledge to help boostSME exports by growingour provision of tradefi nance by 25%.

• A new action planning toolto help 10,000 businesses become more resilient, by 2020, by understanding and acting upon the benefi ts of running their business in a lasting and responsible way. We have a network of trained Relationship Managers and work with local partners to provide guidance and support on managing the risks and

Ø In partnership with the University of Warwick,

the Warwick Manufacturing Group, the Engineering Employers’ Federation and the Manufacturing Technologies Association we have trained more than 280 managers across the UK to help enhance the support we offer manufacturing businesses.

Ø We are supporting our business customers

through our network of over 2,000 customer facing staff, as well as through our internet site which received more than two million views a month throughout 2014.

Ø Lloyds Banking Group has committed £50 million to

Big Society Capital, to help create a sustainable social investment market in the UK.

Ø We are investing £1 billion across the Group to deliver

improved digital services, giving customers more ways to bank with us. This includes making improvements to our Mobile Banking App and launching a new online banking channel to support SME customers as they grow their business.

Ø The Lloyds Bank Business Digital Index 2015 showed

that over a million SMEs lack basic digital skills. We are working with Go ON UK, the Digital Skills charity to provide a range of online toolkits and workshops to help improve businesses’ digital skills.

taking the opportunities presented by a changing business environment.

Ø Through the Business Finance Taskforce, we are

delivering 17 measures to help businesses by improving customer relationships, ensuring better access to fi nance and promoting a better understanding of the industry.

Ø Through our own Appeals Pledge, which goes beyond

industry agreed guidelines, we have committed to look at 90% of customer appeals within 15 working days, and make a goodwill payment wherever a decisionis overturned in a customer’s favour.

Ø We have been leading the Business Finance Taskforce

mentoring initiative and we now have more than 400 mentors across the UK, more than any other bank.

Ø Our Business Support Unit (BSU) is continuing to help

businesses in fi nancial diffi culties. In the three months to March 2015 it helped more than 460 businesses onto a sounder fi nancial footing and protected 3,300 jobs. Most of the businesses helped were SMEs.

Ø Lloyds Banking Group continues its support

of the UK manufacturing sector. We have committed £1 million-a-year for the Lloyds Bank Advanced Manufacturing Training Centre at the Manufacturing Technology Centre, Coventry, to address the sector’s skills gap in the UK. The centre is due to open later this year.

THE COST OF BORROWING

Ø The absolute cost of borrowing for Lloyds

Bank customers has more than halved since 2007. During March 2015, 87% of Lloyds Banking Group’s new variable rate term lendingto SMEs was at an interest rate margin of 4% or less over base rate.

Ø We have promised that arrangement fees on

loans and overdrafts willnot be greater than 1.5%of a customer’s facilities (subject to minimum feesfor small facilities).

Ø We only seek security where appropriate,

on a case by case basis, refl ecting risk and typeof facility.