Lloyds Banking Group PLC (LSE:LLOY) shares traded positively on Tuesday with the confirmation that it had passed the Bank of England’s 2025 Bank Capital Stress Test.
In line with the UK banking sector's results being released as part of the central bank’s Financial Stability Report, Lloyds noted that no capital actions were required of it following the BoE assessment.
The BoE calculated a stressed CET1 ratio of 10.9% and a stressed leverage ratio of 4.6%, ahead of minimum thresholds of 5.9% and 3.3% respectively.
Lloyds noted that the test scenarios modelled 'a severe global supply shock, deep recessions and sharp declines in property prices and GDP'.
The UK bank added that the results reflected its balance-sheet strength, whilst highlighting a pro-forma CET1 ratio of 13.5% and a UK leverage ratio of 5.5% at 31 December 2024.
"The strong performance and indeed continued strengthening of the stressed performance of the Group reflects the Group's prudent balance sheet management and strong capital position ... The group continues to be strongly capital generative as highlighted in our recent Q3 results," Lloyds said in a statement.
In London, Lloyds shares were up 1.53% in Tuesday morning's trade, changing hands at 96.96p.