Lloyds Banking Group PLC — Capital/Financing Update 2016

Feb 11, 2016

Final Terms dated 9 February 2016

Lloyds Bank plc

Issue of EUR100,000,000 Capped and Floored CMS-linked
Collable Single Range Accrual Notes due February 2031

under the Global Medium Term Note Programme

PART A — CONTRACTUAL TERMS

These Final Terms constitute Issue Terms for the purposes of the Base General Conditions. Terms used herein shall be deemed to be defined as such for the purposes of the Base Conditions set forth in the Prospectus dated 9 April 2015 and the supplemental prospectus dated 11 May 2015 and the supplemental prospectus dated 12 August 2015 and the supplemental prospectus dated 5 November 2015 which together constitute a base prospectus for the purposes of the Prospectus Directive. This document constitutes the final terms of the Notes described herein for the purposes of Article 5.4 of the Prospectus Directive and must be read in conjunction with such Prospectus as so supplemented. Full information on the Issuer and the offer of the Notes is only available on the basis of the combination of these Final Terms and the Prospectus as so supplemented. The Prospectus and the supplemental prospectuses are available for viewing at www.londonstockexchange.com/exchange/news/market-news/market-news-home.html and copies may be obtained from Lloyds Bank plc, 25 Gresham Street, London EC2V 7HN

The expression "Prospectus Directive" means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant Member State) and includes any relevant implementing measure in the Relevant Member State and the expression "2010 PD Amending Directive" means Directive 2010/73/EU.

1. Issuer: Lloyds Bank plc
2. (i) Series Number: WMTN0223
   (ii) Tranche Number: 1
3. Specified Currency: Euro (“EUR”)
4. Aggregate Nominal Amount
   (i) Series: EUR100,000,000
   (ii) Tranche: EUR100,000,000
5. Issue Price: 100 per cent. of the Aggregate Nominal Amount
6. (i) Specified Denominations: EUR100,000
   (ii) Calculation Amount: EUR100,000
7. (i) Issue Date: 11 February 2016
   (ii) Trade Date: 28 January 2016
8. Maturity Date: 11 February 2031
9. Business Day Convention: Modified Following Business Day Convention (Unadjusted)
10. Business Centre(s): London and TARGET Business Days
11. Calculation Agent: JPMorgan Chase Bank N.A., London Branch
12. Alternative Currency Equivalent: Not Applicable
13. Synthetic Currency Asset Conditions: Not Applicable

PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE

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14 Fixed Rate Note Provisions Not Applicable
15 Floating Rate Note Provisions Not Applicable
16 Zero Coupon Note Provisions Not Applicable
17 Index Linked Interest Provisions Not Applicable
18 Inflation Linked Interest Provisions Not Applicable
19 Currency Linked Interest Provisions Not Applicable
20 Commodity Linked Interest Provisions Not Applicable

21 Rate Linked Interest Provisions Applicable

(i) Range Accrual Reference Item: 1
(ii) Payment Date Extension: Not Applicable
(iii) Underlying Rate(s):
(a) Underlying Rate:

(I) Underlying Rate: EUR CMS Rate
(II) Weight: Not Applicable
(III) Underlying Rate Jurisdiction: Frankfurt
(IV) ISDA Determination: Not Applicable
(V) Screen Rate Determination: Not Applicable
(VI) CMS Rate Determination: Not Applicable
(VII) Rates Variance Determination: Applicable

Underlying Rate 1:

(A) ISDA Determination: Not Applicable
(B) Screen Rate Determination: Not Applicable
(C) CMS Rate Determination: Applicable

• CMS Currency: EUR
• CMS Designated Maturity: 30 year
• CMS Screen Page: Reuters Screen ISDAFIX2 Page
• CMS Reference Time: 11 a.m. (Frankfurt time)
• CMS Determination Date: Two (2) TARGET and London Business Days prior to each Range Accrual Observation Date as stated in Coupon Payout Condition 11.1
• CMS Business Centre(s): TARGET
• CMS Reference Banks Number: Five (5)
• CMS Relevant Interbank Market: Eurozone interbank market

Underlying Rate 2:

(A) ISDA Determination: Not Applicable
(B) Screen Rate Determination: Not Applicable
(C) CMS Rate Determination: Applicable

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• CMS Currency: EUR
• CMS Designated Maturity: 5 year
• CMS Screen Page: Reuters Screen ISDAFIX2 Page
• CMS Reference Time: 11 a.m. (Frankfurt time)
• CMS Determination Date: Two (2) TARGET and London Business Days prior to each Range Accrual Observation Date as stated in Coupon Payout Condition 11.1
• CMS Business Centre(s): TARGET
• CMS Reference Banks Number: Five (5)
• CMS Relevant Interbank Market: Eurozone interbank market

(b) Underlying Rate 2: Not Applicable
(iv) Underlying Rate Basket Level: Not Applicable
(v) Initial Setting Date: Not Applicable
(vi) Initial Averaging Dates: Not Applicable
(vii) Valuation Dates/Averaging Dates: Valuation Dates: Averaging Dates: Not Applicable Not Applicable
(viii) Observation Dates: In addition to the dates in Rate Linked Asset Condition 5.7 (Definitions), each Range Accrual Observation Date as stated in Coupon Payment Condition 11.1

(ix) Valuation Time: Not Applicable
(x) Look-Back Provisions: Not Applicable

22 Multi-Asset Basket Linked Interest Provisions Not Applicable
23 Structured Floating Rate Coupon Not Applicable
24 Inverse Floating Rate Coupon Not Applicable
25 Fixed Rate Step-Up/Step-Down Coupon Not Applicable
26 Fixed to Floating Coupon Not Applicable
27 Floating to Fixed Coupon Not Applicable
28 Fixed to Floating Switchable Coupon Not Applicable
29 Floating to Fixed Switchable Coupon Not Applicable
30 Fixed Rate Range Accrual Coupon Not Applicable
31 Floating Rate Range Accrual Coupon Applicable

(i) Interest Commencement Date: Issue Date
(ii) Interest Period Date(s): Each Interest Payment Date
(iii) Interest Payment Date(s): 11 February in year from and including 11 February 2017 to and including the Maturity Date
(iv) Fixed Rate Period Start Date: Not Applicable
(v) Fixed Rate Period End Date: Not Applicable
(vi) Fixed Rate of Interest: Interest Accrual Period: Fixed Rate of Interest: Not Applicable Not Applicable
(vii) Full Coupon Barrier: Not Applicable

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(viii) Range Accrual Observation Each Floating Rate Interest Accrual Period
(ix) Range Accrual Observation Each calendar day in each Range Accrual Observation Period Dates:
(x) Range Accrual Observation Five (5) TARGET and London Business Days prior to the last Period Cut-Off Date: day in each Interest Accrual Period
(xi) Range Accrual Observation Time: 11:00 am (Frankfurt time)
(xii) Range Accrual Barrier Provisions:
Range Accrual Barrier Period: Lower Barrier: Upper Barrier:
All Interest Accrual Periods 0.55 per cent. Not Applicable
falling in the period from and including 11 February 2016 to but excluding the Maturity Date
(xiii) Lower Barrier Criterion: Excess/Equal
(xiv) Upper Barrier Criterion: Not Applicable
(xv) Range Accrual Common Not Applicable Scheduled Trading Days:
(xvi) Range Accrual Individual Not Applicable Disrupted Days:
(xvii) Range Accrual Common Not Applicable Disrupted Days:
(xviii) Business Day Convention: Modified Following Business Day Convention (Unadjusted)
(xix) Party responsible for calculating Not Applicable the interest due (if not the Calculation Agent):
(xx) Relevant Rate:
(a) ISDA Determination: Not Applicable
(b) Screen Rate Determination: Not Applicable
(c) CMS Rate Determination: Applicable
- CMS Currency: EUR
- CMS Designated Maturity: 10 year
- CMS Screen Page: Reuters Screen ISDAFIX2 Page
- CMS Reference Time: 11 a.m. (Frankfurt time)
- CMS Determination Date: Two (2) TARGET and London Business Days prior to the start of the relevant Interest Accrual Period
- CMS Business Centre(s): TARGET
- CMS Reference Banks Number: Five (5)
- CMS Relevant Interbank Market: Eurozone interbank market
(d) Rates Variance Determination: - Not Applicable
(xxi) Day Count Fraction: 30/360
(xxii) Leverage: Applicable
Interest Accrual Period: Leverage:
All Interest Accrual
Periods falling in the period 300 per cent. from and including 11 February 2016 to but

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excluding 11 February 2021

All Interest Accrual 100 per cent

Periods falling in the period from and including 11 February 2021 to but excluding the Maturity Date

(xxiii) Margin:

Applicable

Interest Accrual Period: Margin:

All Interest Accrual 0.00 per cent. per annum

Periods falling in the period from and including 11 February 2016 to but excluding 11 February 2021

All Interest Accrual Periods +1.34 per cent. per annum falling in the period from and including 11 February 2021 to but excluding the Maturity Date

(xxiv) Cap:

Applicable

All Interest Accrual 5.00 per cent. per annum

Periods falling in the period from and including 11 February 2016 to but excluding 11 February 2021

All Interest Accrual Periods 6.34 per cent. per annum falling in the period from and including 11 February 2021 to but excluding the Maturity Date

(xxv) Floor:

Applicable

Interest Accrual Period: Floor:

All Interest Accrual 0.00 per cent. per annum

Periods falling in the period from and including 11 February 2016 to but excluding the Maturity Date

(xxvi) Snowball Interest Amount: Not Applicable

32 Fixed Rate Dual Range Accrual Coupon Not Applicable

33 Floating Rate Dual Range Accrual Coupon Not Applicable

34 Digital Coupon Not Applicable

35 Inflation Linked Coupon Not Applicable

36 Inflation Protected Coupon Not Applicable

37 Performance Coupon Not Applicable

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38 Annualised Performance Coupon Not Applicable

PROVISIONS RELATING TO REDEMPTION

39 Put/Call Options Call Option

40 Call Option Applicable
(i) Optional Redemption Date(s): Each 11 February from and including 11 February 2026 to and including 11 February 2030
(ii) Optional Redemption Amount(s): EUR100,000 per Calculation Amount
(iii) If redeemable in part:
(a) Minimum Redemption Amount: Not Applicable
(b) Maximum Redemption Amount: Not Applicable
(iv) Call Option Business Centre(s): TARGET and London Business Days
(v) Notice period: Not less than five (5) Call Option Business Days

41 Put Option Not Applicable
42 Target Auto Redemption Not Applicable
43 Autocall Not Applicable
44 Final Redemption Amount EUR100,000 per Calculation Amount
45 Early Redemption Amount
Early Redemption Amount(s): Par

46 Unwind Costs: Applicable
47 Expenses Not Applicable
48 Index Linked Redemption Provisions Not Applicable
49 Inflation Protected Redemption Provisions Not Applicable
50 Currency Linked Redemption Provisions Not Applicable
51 Commodity Linked Redemption Provisions Not Applicable
52 Rate Linked Redemption Provisions Not Applicable
53 Multi-Asset Basket Linked Redemption Provisions Not Applicable
54 Performance Redemption Not Applicable
55 Performance Plus Downside Redemption Not Applicable
56 Performance Plus Conditional Downside Redemption Not Applicable
57 Absolute Performance Redemption Not Applicable
58 Reverse Convertible Redemption Not Applicable
59 Reverse Convertible Plus Conditional Downside Redemption Not Applicable
60 Inflation Protected Redemption Not Applicable
61 Dual Currency Redemption Not Applicable

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Form of Final Terms

GENERAL PROVISIONS APPLICABLE TO THE NOTES

62 Form of Notes
Bearer Notes - Temporary Global Note exchangeable for a Permanent Global Note which is exchangeable for Definitive Notes in the limited circumstances specified in the Permanent Global Note

63 New Global Note
No

64 Additional Disruption Events
Not Applicable

65 Talons for future Coupons or Receipts to be attached to Definitive Notes (and dates on which such Talons mature)
Not Applicable

66 Details relating to Instalment Notes: amount of each instalment, date on which each payment is to be made
Not Applicable

DISTRIBUTION

67 U.S. Selling Restrictions
Reg S Category 2; TEFRA D

LISTING AND ADMISSION TO TRADING APPLICATION

These Final Terms comprise the final terms required for issue and admission to trading of the Notes described herein pursuant to the Global Medium Term Note Programme of Lloyds Bank plc and Lloyds Banking Group plc.

Signed on behalf of the Issuer:

By:
Duly authorised

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PART B — OTHER INFORMATION

1 LISTING AND ADMISSION TO TRADING

(i) Listing and admission to trading: Application is expected to be made by the Issuer (or on its behalf) for the Notes to be listed on the Official List of the UK Listing Authority and to be admitted to trading on the regulated market of the London Stock Exchange with effect from or around 11 February 2016.

(ii) Estimate of total expenses related to GBP2,700 (plus VAT)
admission to trading:

2 RATING

Ratings: The Notes to be issued have not been rated

3 INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE ISSUE

"Save as discussed in "Selling Restrictions", so far as the Issuer is aware, no person involved in the offer of the Notes has an interest material to the offer."

4 REASONS FOR THE OFFER, ESTIMATED NET PROCEEDS AND TOTAL EXPENSES

(i) Reasons for the offer: Please refer to the section entitled “Use of Proceeds” in the Prospectus
(ii) Estimated net proceeds: Not Applicable
(iii) Estimated total expenses: Not Applicable

5 HISTORIC INTEREST RATES

Details of historic CMS rates can be obtained from Reuters

6 OPERATIONAL INFORMATION

ISIN Code: XS1357880316
Common Code: 135788031
Swiss Securities Number Not Applicable
(Valorenummer):
WKN Number Not Applicable
(Wertpapierkennnummer):
Any clearing system(s) other than Euroclear Bank S.A./N.V. and Clearstream Banking, societe anonyme and the relevant identification number(s):
Delivery: Delivery against payment
Names and addresses of additional Paying Agent(s) (if any): Not Applicable

7 INDEX DISCLAIMER

Not Applicable