Lloyds Banking Group PLC — Capital/Financing Update 2016

Sep 20, 2016

Final Terms dated 16 September 2016

Lloyds Bank plc

Issue of USD 20,000,000 Callable Zero Coupon Notes due September 2046
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 17 May 2016 and the supplemental prospectus dated 29 July 2016, 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 prospectus 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: WMTN0240
   (ii) Tranche Number: 1
3. Specified Currency: United States Dollars (“USD”)
4. Aggregate Nominal Amount
   (i) Series: USD 20,000,000
   (ii) Tranche: USD 20,000,000
5. Issue Price: 100.00 per cent. of the Aggregate Nominal Amount
6. (i) Specified Denominations: USD 1,000,000
   (ii) Calculation Amount: USD 1,000,000
7. (i) Issue Date: 20 September 2016
   (ii) Trade Date: 2 September 2016
8. Maturity Date: 20 September 2046
9. Business Day Convention: Modified Following Business Day Convention (Unadjusted)
10. Business Centre(s): London and New York
11. Calculation Agent: Citibank, N.A., London Branch
12. Waiver of Set-off: Not Applicable
13. Alternative Currency Equivalent: Not Applicable
14. Synthetic Currency Asset Conditions: Not Applicable

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PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE

15 Fixed Rate Note Provisions Not Applicable
16 Floating Rate Note Provisions Not Applicable
17 Zero Coupon Note Provisions Applicable
(i) Amortisation Yield: 3.73 per cent. per annum
(ii) Amortisation Yield compounding basis: Compounded annually
(iii) Day Count Fraction: 30/360
18 Index Linked Interest Provisions Not Applicable
19 Inflation Linked Interest Provisions Not Applicable
20 Currency Linked Interest Provisions Not Applicable
21 Commodity Linked Interest Provisions Not Applicable
22 Rate Linked Interest Provisions Not Applicable
23 Multi-Asset Basket Linked Interest Provisions Not Applicable
24 Structured Floating Rate Coupon Not Applicable
25 Inverse Floating Rate Coupon Not Applicable
26 Fixed Rate Step-Up/Step-Down Coupon Not Applicable
27 Fixed to Floating Coupon Not Applicable
28 Floating to Fixed Coupon Not Applicable
29 Fixed to Floating Switchable Coupon Not Applicable
30 Floating to Fixed Switchable Coupon Not Applicable
31 Fixed Rate Range Accrual Coupon Not Applicable
32 Floating Rate Range Accrual Coupon Not Applicable
33 Fixed Rate Dual Range Accrual Coupon Not Applicable
34 Floating Rate Dual Range Accrual Coupon Not Applicable
35 Digital Coupon Not Applicable
36 Inflation-Linked Coupon Not Applicable
37 Inflation Protected Coupon Not Applicable
38 Performance Coupon Not Applicable
39 Annualised Performance Coupon: Not Applicable

PROVISIONS RELATING TO REDEMPTION

40 Put/Call Options Call Option
41 Call Option Applicable
(i) Optional Redemption Date(s): See table below
(ii) Optional Redemption Amount(s): See table below
(iii) If redeemable in part:
(a) Minimum Redemption Amount: Not Applicable
(b) Maximum Redemption Amount: Not Applicable
(iv) Call Option Business Centre(s): London and New York

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(v) Notice period:

At least five (5) London and New York Business Days prior to the relevant Optional Redemption Date

Optional Redemption Date	Optional Redemption Amount (per Calculation Amount) (in USD)
20 September 2021	1,200,941.60
20 September 2022	1,245,736.72
20 September 2023	1,292,202.70
20 September 2024	1,340,401.86
20 September 2025	1,390,398.85
20 September 2026	1,442,260.73
20 September 2027	1,496,057.06
20 September 2028	1,551,859.98
20 September 2029	1,609,744.36
20 September 2030	1,669,787.83
20 September 2031	1,732,070.91
20 September 2032	1,796,677.16
20 September 2033	1,863,693.22
20 September 2034	1,933,208.97
20 September 2035	2,005,317.67
20 September 2036	2,080,116.02
20 September 2037	2,157,704.34
20 September 2038	2,238,186.72
20 September 2039	2,321,671.08
20 September 2040	2,408,269.41
20 September 2041	2,498,097.86
20 September 2042	2,591,276.91
20 September 2043	2,687,931.54
20 September 2044	2,788,191.39
20 September 2045	2,892,190.92

42 Put Option Not Applicable

43 Target Auto Redemption Not Applicable

44 Autocall Not Applicable

45 Final Redemption Amount USD 3,000,069.65 per Calculation Amount

46 Early Redemption Amount Amortised Face Amount in accordance with Condition 7(b)(i) of the Base General Conditions

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

GENERAL PROVISIONS APPLICABLE TO THE NOTES

63 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
64 New Global Note No
65 Additional Disruption Events Not Applicable
66 Talons for future Coupons or Receipts to be attached to Definitive Notes (and dates on which such Talons mature) Not Applicable
67 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

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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 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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6

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 the Issue Date.

(ii) Estimate of total expenses related to admission to trading: GBP 300 + VAT

2 RATINGS

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 titled “Use of Proceeds” in the Base Prospectus

(ii) Estimated net proceeds: Not Applicable

(iii) Estimated total expenses: Not Applicable

5 OPERATIONAL INFORMATION

ISIN Code: XS1487924968

Common Code: 148792496

Swiss Securities Number (Valorennummer): Not Applicable

WKN Number (Wertpapierkennnummer): Not Applicable

Any clearing system(s) other than Euroclear Bank S.A./N.V. and Clearstream Banking, société anonyme and the relevant identification number(s): Not Applicable

Delivery: Delivery against payment

Names and addresses of additional Paying Agent(s) (if any): Not Applicable

6 INDEX DISCLAIMER

Not Applicable