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← Lloyds Bank Foundation For The Channel Islands

2021-12-31-accounts

LLOYDS BANK FOUNDATION Channel Islands LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 Contents REFERENCE AND ADMINISTRA TIVE DETAILS CHAIR'S REVIEW OF THE YEAR TRUSTEES, REPOR T AND STRA TEGIC REPORT INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LLOYDS BANK FOUNDA TION FOR THE CHANNEL ISLANDS 20 STA TEMENT OF FINANCIAL ACTIVITIES 24 25 BALANCE SHEET STA TEMENTOF CASH FLOWS NOTES TO THE FINANCIAL STA TEMENTS 26 27 Page 2 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity Number 327113 Company Limited by Guarantee 1971241 Reglstered office Society Building 8 All Saints Street London N19RL corresponden￿ Address (UK) Society Building 8 All Saints Street London N19RL Correspondence Address (Cl) 1 Smith Street, St Peter Port Guernsey GY14BD Email JLePoidevin dsbankfoundation.or Website www.llo dsbankfoundationci.or Bankers Lloyds Bank International 9 Broad Street st Heller Jersey, JE2 3RR Independent Auditors Deloilte LLP 2 New Street Square London, EC4A 3BZ Investment Managers Cazenove Capital Regency Court Glategny Esplanade St. Peter Port Guernsey. GY13UF P8ge 3 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 REFERENCE AND ADMINISTRATIVE DETAILS {cont.) TRUSTEES The Trustees who were In office during the year and up to the date of signing the financial statements were: Kathryn Le Quesne (until March 2021) Chair, (until March 2021) Chair of Nominations Committee (until March 2021) Chair of Remuneration Committee {until March 2021) Chair (from May 2021) Chair of Nominations CommSttee (from May 2021) Chair of Remuneration Committee (from May 2021) Brlan Heath MBE Deputy Chair (from November 2021) Jurat David Hodgetts LVO (until November 2021> Deputy Chair (until November 2021) Heather Maccallum Chair of Audit & Investment Committee Neil Fellows Advocate Gavin Ferguson Alasdair Gardner John Henwood MBE Tracey Johnson Poppy Murray (from December 2021 } Philippa Stahelin (from May 2021) Executlve Director Johanna Le Poidevin Page 4 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 CHAIR'S REVIEW OF THE YEAR l am delighted to be writing my first Annual Report in my first year as Chair of Lloyds Bank Foundation for the Channel Islands. This Review offers a chance to reflect on the year as well as a look forward to our strategy and key objectives into 2022. Our fundamental mission remains the same- to support charitable organisations which help people, especially those who are disadvantaged, to play a fuller role in communities throughout the Channel Islands. COVID continued to overshadow our communities again in 2021 and the measures of co- working, instant a¢￿sS to funds and being available for COVID emergency and recovery funding continued. Many of the changes in terms of availability of funds outside nomal deadlines were carried into 2021, to ensure delivery of money at the point of need. Joint working with other charitable grant givers across the Channel Islands, which had worked so well in 2020 was built on and continued, making grant giving more efficient and co-ordinated. We have provided support with funding, mentors and training, all wllh the background of COVID restrictions presenting a further year of challenges for Charities and the Foundation alike. But it was also a year when we could celebrate the extraordinary work of the Foundation within our communities through the 35-year anniversary grant programme providing 10 awards of £35,000 in unrestricted funding for charities working in the areas of.. domeslic violence, employability support, and mental health and wellbeing, In 2021 we awarded grants totalling £1,071,643 to the following charities: Alderney Mind Autism Guernsey, Bowel Can￿r Guernsey, Carers Guernsey, Guernsey Caring for Ex-offenders. Guemsey Employment Trust, Guernsey Mind, GROW, Ron Short Centre, Safer, Styx Centre. Trauma Recovery Cenlre, Vive La Vallette, Youth Commission for Guernsey and Alderney Autism Jersey, Beresford Street Kitchen, Brightly, Centre Point Trust, Famlly Flrst, Jersey Action Against Rape, Jersey Child¢are Trust, Jersey Eating Disorder Support, Jersey Employment Trust, Jersey Women's Refuge, NSPCC Jersey, The Shelter Trust, Words and Numbers Matter We continue to inform our communities of the work of the Foundation, with a much enhanced social media programme, celebrating the work of our local charities and highlighting their value to those who they serve. Greater reach within the communities led to more charities knowing about the help we can give and broadening our funding application base. We seek always to find new opportunities to support people in the Channel Islands, via our social media platforms but more importantly with direct engagement in our communities with personal contact and visits, when possible. Partnerships with charitable organisations is a mainstsy of our working and although primarily this is through our grant and matched giving programmes, It is also through sharing time, expertise, and skills with one-to-one support for charities and for the wider sector through training and events. A powerful offering from the Foundation comes through our mentoring programme and we were able to match eight Lloyds Bank colleagues as volunteer mentors lo charities in 2021. Page 5 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 CHAIR'S REVIEW OF THE YEAR (cont.) Governmenls Gonts'nue to be preoccupied with political pressures. so the work of the Foundation becomes ever more important. Discussions at Government level are being had via our combined grant givers groups and with the Foundation. Partnership working must be the key going forwards. As we move fo￿ardS in 2022, we recognise thatthe Foundation and the charities we support will continue to face challenging times. Many charities stepped in to fill gaps in services and used reserves to fund them. Already we are seeing high demands for support as we approach our first round of grant giving for the year, so selecting who we can help will be no easy task. We are enormously gratefvl to our sole funder, Lloyds Banking Group for their ongoing financial commitment and wider support offered to Ihe Foundation and charities in the Channel Islands. We are also grateful to the supportof Lloyds Bank Foundation for England and Wales helping to ensure the smooth running ofthe Foundation's baCk-Offi￿ functions. We are fortunate to have the experience and expertise of Jo Le Poidevin, our Executive Director. She has been instrumental in building links with other grant givers, reacting quickly to charity needs and guiding the Board through the challenges over the past year. As ever, the Foundation has been grateful to call upon the services of the Board and the Trustees have performed theirduties with real diligence and enlhusiasm. We said goodbye to our Chair Katie Le Quesne, who has led the Foundalion admirably and set so many new initiatives in place to strengthen the organisation. We thank her and wish her well. Another Trustee and Deputy Chair, David Hodgetts, came to the end of his term and we thank him for sharing his infinite knowledge and expertise. A new Trustee, Poppy Murray was appointed recently, and I know will prove a huge asset to the Board and will strengthen us with her skills. Our focus will remain on our core objectives and criteria, supporting charities who really make a difference. With a wat¢hfvl eye on Ihefinancials, the Foundation will look togive funds where the need is greatest, and the results of those funds are most impactful. Raising awareness in the community, engaging Lloyds Bank locally in our work will be part of our aim for 2022, as well as continuing our mentoring and training programmes. This and working with partners and engaging with Government will be the core strands and aims for the Foundation for the year ahea Philippa Stahelin Chair of Trustees 31 March 2022 Page 6 of38

LLOYDS BANK FOUNDATION FOR THE CHANNEL18LANDS YEAR ENQED 31 DECEMBER 2021 Granls approved In 2021 All grants during 2021 (excluding cancelled grants and Matched Giving) fell within one or other of the two main objects of the Foundation.. Education and Training. or Social and Community Needs. Issue 2021 No. of Grants 2021 Grants 2020 2020 No. of Grants Grants 6 106,368 7 194,813 4 151,200 11 361,824 68,383 Support for Children and Young People Health including Mental Health Support for People with Disabilitles Community Support Training, employmenl and lifelong learnlng Victirn Support Offenders l Ex-offenders Relationships including caring Homelessness 269,699 189,000 249,944 83,000 105,000 70,000 35,000 35,000 35,000 84,050 Total Grants 29 1071643 33 966,638 Page 7 of 38

LLOYDS BANK FOUPIDATION FOR THE CHANNEL ISLAND8 YEAR ENDED 31 DECEMBER 2021 TRUSTEES, REPORT AND STRATEGIC REPORT (Incorporatlng the Directors, Report) The Trustees, who are also Directors of the company, present their annual report and the audited financial statements for the year ended 31 December 2021, which have been prepared in accordance with Charities SORP FRS 102 (second edition - October 2019), the Companies Act 2006, and the Charities Act 2011. The Trustees have taken into consideration the Charity Commission guidance on public benefit. STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng documont and constltution The Lloyds Bank Foundation for the Channel Islands was incorporated under and is regulated by its Memorandum and Articles of Association dated 13 December 1985 (as altered by Special Resolution on 17 March 1999, 2 December 2013 and 25 March 2014} as a company registered in the United Kingdom and limited by guarantee. Structure of the Foundation Of the nine Trustees, Ihere is representation from the two main Islands. plus the Chair. The names and roles of Trustees are provided on page 4 of this report. The legal and accounting records are maintained in London. Details of auditors, investment managers, bankers and location of registered office are included on page 3. Recruitment, appointment, Induction and trainlng of Trustees The list of Trustees Covers the year to 31 December 2021 and up to the date of signing the financial statements. Their appointments are ratified by Lloyds Banking Group Plc's Nomination and Governan￿ Committee on the recommendation of the Foundation's Board of Trustees. Applications for Trusteeship are sought both Ihrough Island-wide nelworks and open competition. The Nomination Committee, which operates under specific terms of reference delegated from the Board ofTrustees, comprises at least three seNing Trustees who consider nominations and interview candidates or agree a Selection Panel of three from the Board of Trustees to undertake recruitment. Trustees normally serve for a three-year period and may be re-appointed for one further three- year term. Trustees. skills and outside interests are regularly reviewed, and prior to seeking a new Trustee the Nomination Comrnittee reviews the composition ofthe Board to identify any specific ski118 required and training is provided as required. Newly appointed Trustees are provided with a comprehensive pack of induction materials and are encouraged to visit beneficiary charities together with fellow Trustees or the Executive Director. Tho Board The full Board of Trustees makes strategy and policy decisions and sets the annual budget. The Chair has authority to approve grants up to £5,000 per grant belmieen Board meelings but apart from those, all grant decisions are made by the full Board ofTrustees. Page 8 of 38

LLOYOS BANK FOUNDATION FOR THE CHANNEL ISLAND8 YEAR ENDED 31 DECEMBER 2021 TRUSTEES, REPORT AND STRATEGIC REPORT (cont.) ORGANISATIONAL STRUCTURE AND DECISION.MAKING Th8 Board Icontlnued) The Board meets four limes a year(ormore frequently ifrequired), normally in January, March (incorporating the AGM), July and November. Meeting venues normally alternate between Guernsey and Jersey. Due to the pandemic travel restrictions the Board met virtually from March 2020 onwards. The Board was able to meet fa￿ to face in November 2021. The Executive Director is responsible for the day-to-day operation of the Foundation and has authority to incur administrative expenditure within the budget set by the Trustees. Initial assessment of applications, visits to applicants and monitoring visits of grant holders are undertaken by the Executive Director who is based in Guernsey and would normally frequently travels between the Islands. Due to the pandemic visits were conducled virtually to comply with the government restrictions and regulalion8, with limited face to face visits during the latter part of 2021. Board Committ808 There are three permanent Committees ofthe Board, whlch report fully on their meetings and other activities the Nomination Commiltee, Audit and Investment Gommittee and Rernuneralion Committee each of which comprise a minimum of three Trustees. The Terms of Reference of these Committees are regularly reviewed by the Board. The role of the Audlt and Inveslment Commlttee is to satisfy itself that any financial statements published by the Foundation follow approved accounting principles and give a true and fair view of the Foundation's financial posilion. This includes examination and review of the Foundation's annual financial statements with the auditors prior to consideration by the full Board, and examination and review of reports prepared by the Lloyds Banking Group pl internal audit function. The Committee's remit also includes overseeing the Foundation's risk management procedures and monitoring investments held by the Foundation. The Committee meets annually. to consider the report of the auditors and the annual report and financial statements prior to their presentation to the full Board. All members of the Committee normally attend meetings. The Committee sab'sfies itself as to the auditors, independence. The role of the Remuneratlon Commlttee is to make recommendations lo the Trustees concerning the broad policy framework for remuneration and the year-end review of Foundation staff. It determines the remuneration package and terms and conditions of the Executive Director {at present the sole paid employee) on appointment and recommends to Trustees her salary for the forthcoming year. Pay setting is calculated by research on market indicators. The role oflhe Nomlnation Commltte8 is to make recommendations to the Board of Trustees and Lloyds Banking Group plc Nomination and Governance Committee on the appointment of new Trustees, giving due consideration to the balance of skills, interests and experience on the Board of Trustees. Pag& 9 of 38

LLOYD8 BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 TRUSTEES, REPORT AND STRATEGIC REPORT {cont.) Board Commlttees (continued) The process for the appointment of new Trustees is described, above, in the Section headed °Recruilment, appointment, induction and Iraining of Trustees.. Risk management The systems of internal Control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include.. An annual budget approved by the Trustees Regular consideration by the Trustees of financial results. variance from budgets Delegation of authority and segregation of duties Identification and management of risks Approval of grants by the Trustees In respect of operational practices, a review of risk8 facing the Foundation is undertaken by the Board. Risks identified are prioritised in terms of potenlial impact and likelihood of occurrence, and the Trustees confirm that systems or procedures are in pla￿ to mitigate the significant risks identified. The review incorporates examination of the adequacy of the Foundation's internal controls. It is recognised that risk management is an ongoing activity Involving all Trustees and staff and is established as an agenda item for the fvll Board and Audit and Investment Committee. The principal risks are as follows. Risk Virtually all the income arising from single sOU￿e, Lloyds Banking Group plc Investment losses How wo manage It The funding agreement includes a minimurn level - this was increased in 2021 from £460,500 10 £614,(XJO effective from 2022 The funding agreement requires nine year's noti￿ to be given Funding is available frorn reseNes to maintain grant giving Regular monitoring of performance Diversified portfolio Advice from Investment Manager- Cazenove Capital Regular feedback from grantees Training and support for grantees Regular review of grant making strategy Support from Lloyd5 Foundation for England & Wales Support of Executive Director by Chair and Trustees Regular communications and monitoring Training in cyber security Access controls Back up and recovery processes Impact 5s the Foundation making the deslred Impact Key person failure IT security P8ge10of 38

LLOYD8 BANK FOUNDATION FOR THE CHANNEL ISLAND8 YEAR ENDED 31 DECEMBER 2021 TRUSTEES. REPORT AND STRATEGIC REPORT (cont.) Related partles The Foundation is related to Lloyds Banking Group pl¢ and connected to the Lloyds Bank Foundation for England & Wales, Halifax Founitation for Northern Ireland and the Bank of Scotland Foundation. See Note 12 for details of transactions with Ihese connected charities and related parties. Each Foundation is directed by its own independent Board of Trustees. OBJECTIVES AND ACTIVITIES The obj-ects of the Foundation, as set out in the Memorandum of Association, are as follows.. The Lloyds Bank Foundation for the Channel Islands is established to do anything which is a charitable purpose according to the laws of England and Wales from time to time principally in, but not limited to, the Channel Islands including in particular (but without prejudice to the generality of the foregoing}'. To advan￿ education and training in all aspects of knowledge by means of (but not limited to) the making of grants. including the establishment of scholarships and prizes, and other like awards- To advance scientific or medical research, on the condition that all useful results of such scientific or medical research are published, and education in scienlific or medical research by means of (but not limited to) the making of grants, including the establishment of scholarships and prizes, and other like awards; and To promote the provision of facilities in the interest of social and community welfare for recreation and leisure time occupation and enjoyment of the arts with the object of improving the conditions of life of people who are disadvantaged by youth. age, infirmity or disablement, povety or social and economic circUmstan￿s. Alms, objectives, strategies and slgnlflcant activities The aims of the Foundation are encapsulated in the mission statement.. The Foundation's mis&on is lo support ch8rilabl8 organisalions which help people, especially those who are disadvantaged, to play a fuller m18 in communities Ihroughoul the Channel Islands. The Trustees, primary objective for the year was to continue to provide grants to support charities meeting a wide range of needs in the Islands, in accordan￿ with the Foundation's objects and through the following grant-making programmes: A responsive grant-making programme to support charities with beneficiaries in the Bailiwick of Jersey. A responsive grant-making programme to support charities with beneficiaries in the Bailiwick of Guernsey, induding Alderney and Sark. Jersey Guernsey Page 11 of38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 TRUSTEES, REPORT AND STRATEGIC REPORT {cont.) Alms, objectives, strat6gie8 and signlflcant actlvltles (contlnued) Channel Islands- wide and UK Matched Giving Scheme A responsive grant-making programme to support chartties working across the Channel Islands as a whole and, normally in ¢onjunction with the sister Lloyds Bank Foundations, in the UK. A scheme open to members of staff of Lloyds Banking Group plo based in the Channel Islands, to match fundraising efforts or voluntary time given to charities within the Foundation's guidelines. A second objective was to continue to provide developmental support including mentoring, to help charities to improve their resilience and sustainability. Aehievoments and performance A review of the activities of the Foundation during the financial year is presented in the Chair's Review of the Year (page 51. The Foundation's performance in respect of the primary objective was as follows., The grant expenditure approved in the year, excluding Matched Giving and can￿lIed grants, amounted to £1,071,643 (2020.. £966,638). There were 15 grants for Jersey and 13 for Guemsey based charities and one for Alderney. 15 charities received donations under the Matched Giving scheme. The Foundation's performance in respect of the Second objective was as follows: Embedding a Charity Support offer including access to Charity Response Forums, the Skills Exchange and a mentoring programme in partnership with Lloyds Banking Group colleagues In partnership with Lloyds Bank Academy the delivery of a series offive digital webinars for charities: Creating a digital strategy,. Leading and collaborating using digital tools. Creating your online brand; Telling your story in an online world- and Becoming an effective influencer. Publ1¢ ben6fil In reviewing our alms, objectives and planning for future activilies, the Trustees have considered the Charity Commission's general guidance on public benefit. The Trustees always ensure that the activities undertaken are in line with the charitable objectives and aims of the Lloyds Bank Foundation for the Channel Islands. FINANCIAL REVIEW Income In December 2013 the Foundation entered into a new nine-year rolling agreement, the covenant, with LBG. From 2014, the Foundation re￿iVeS 0.015350/0 of the Group's profits, averaged over three years, subject to a minirnum amount of 3.07% of £20 million (£614,000) and a maximum amount of 3.070h of £50 million (£1,535,000). This secures the Foundation's funding over the long term. Page 12 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 TRUSTEES, REPORT AND STRATEGIC REPORT {cont. FINANCIAL REVIEW (contlnued> The Foundation's donation income for 2021 at £868,690 was similar to the wior year (2020.. £868,293). The olher source of income was interest and dlvidends of £23,583 (2020.. £22,491). In addition to the dividend income the Foundation's investments generated unrealised gains of £128,612. This compares to the un￿aliSed gains of £155,979 In 2020. Expendlture Charitable expenditure for the year by the Foundation was £1,186,971 {2020- £1,074,728). This resulted in a deficit of £166,086 compared to the deficit for 2020 0* £27,965. Grants The Foundation's policy is to support registered charities or those accorded charitable status by States of Guernsey Revenue Services and Guernsey Registry and Jersey's Charity Commission to help disabled or disadvantaged people to play a fuller role in communities throughout the Islands. Guldelines are published and are also available on the Foundation's website wvwj.ilo dsbankfoundalionci.or uk which set out the range of activities eligible for consideration. Currendy the priorities identified by the Trustees as those they wish to focus on within their overall objectives cover,. Health including mental issues or a disability - We support charities which create opportunities for people with health issues including mental health or a physical or learning disability to live and work independently. Homelessness - We help charities which provide accommodation and support for people who are homeless or at risk of homelessness and support Iheir return into society. People leaving institutional care to live independently - We help charities providing support and accommodation for people who are getting back into society after leaving care or prison. Addiction and dependency - We support charities providing education and rehabilitation for people who misuse alcohol and drugs and have gambling problems. Loneliness and isolation- We help charities providing support to people who are vulnerable, people experiencing loneliness and people with carer responsibilities. Employment, literacy, financial literacy and debt problems - We support employment and learning programmes for people disadvantaged by poor education and literacy Including financial literacy and debt problems. Domestic violence - We support charities who help prevent and protect people from abusive relationships. Human Rights - We help charilies who promote and protect human rrghts issues {from mcdern slavery to sexual exploitation), and charities who challenge discrimination and promote equality, diversity and inclusion. The Foundation supports charities which demonstrate good governance and sustainable activities measured against identifiable outcomes. Grants are agreed by the Trustees for a one, two or three-year period, and monitored at least on an annual basis. Page13 of38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 TRUSTEES, REPORT AND STRATEGIC REPORT (cont.) Grants (Continued) The Foundation has adopted a poliGy for accounting purposes which recognises the total grant in the year in which it is approved (see note 1 for relevant accounting policy). This increases the transparency in terms of grant commitment and means that existing grants are not impacted by fvture income (because provision has been made up-front for payments due in years and three). In the medium term, if the financial position of the Foundation deteriorated significantly over a number of years, then changes in levels of grant-making may be considered. Reserves The Foundation's policy Is to set a planned upper limit on its targeted reserve level so that the Foundation does not hold funds back from delivering its charitable activities unnecessarily. The Foundation aims to manage its reserves within an upper and lower reserve limit, or 'reserves corridorf. The Foundation monitors its short and medium forecast position to dentify risks that could cause it to fall outside of this corridor (either side of it), and what corrective actions would be required to bring the Foundation back into the corridor over a Ihree-year period. It is essential that the Foundation's minimum reseNe requirement is met by'liquid, assets so it can be confident that it would have the funds at any given point in lime should the Foundation need them. Liquid Assets are readily accessible assets. principally cash. The Trustees have set a lower reseNe level of£l.5m and an upper reserve level of£2.5m at year end. Temporary reductions below £1.5m are permissible to allow for exceptional grant funding such as projects or emergencies subject to the provision that at no time shall forecast reserves fall below £1.25m. As at 31 December 2021 the Foundation's unrestricted reserves were £1.648.776 {2020: £1,814,862) which isjust above the lower reserve limit. The above reserv8s corridor is based on forecast results and does not take into account exceptional events which may or may not occur, such as sudden and unexpected market impacts on investments. Should such events occur and not be temporary, the Trustees would, as noted above, be expected to determine what corrective actions are required to bring the Foundation back into the corridor over a three-year period. Investments In order to manage investment risk, the Board of Trustees appointed Cazenove Capital as investment manager. The Investment criteria reflect the ethical policies and risk appetite of the Foundation. we aim to follow Lloyds Banking Group's Responsible Investment Framework. Its exciusions policy focuses on companies that have failed to meet ESG standards. In support of this the Foundation wishes to exclude the following investments.. Page 14 of 38

LLOYDS 8ANKFOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDEO 31 DECEMBER 2021 TRUSTEES, REPORT AND STRATEGIC REPORT {cont.) Investments (continued) li) manufacturers of controversial weapons {ii) UN Global Compact violators (iii) those companies deriving more than 1 OOA of their revenue from thermal coal and tar sands extraction. The Trustees aim to keep at least 70Q/D of the assets in investments that can be realised within Ihree months. The Foundation's principal funds are invested in a diverse portfolio with a low to medium risk appelite which is focussed on capital growth, comprising of mults class assets and currencies. The asset allocation at 31 De￿mber and perfomiance for the year was as follows. Assets 2021 £'ooo 929 386 433 43 Allocatlon 2021 Assets 2020 £'ooo 1.067 547 391 58 Allocatlon 2020 uities Bonds Alternative investments Cash Total 51.8 21.6 24.2 51.7 26.5 19.0 100.0 100.0 The portfolio does not contain any direct investment in equity and bonds. All investments are made through collective inveslmenl funds (such as OIECS, SCIAVS and UCITSs}. These investments totalling £1.3 million (2020.. £1.6m) are regarded as Level 2 investments in accordance with Section 34 of FRS 102. The funds individually invest in listed securities and the valuations are provided by the fund rnanager based on the fair value of each security. The alternative investments are regarded as Level 2 investments except for the structured products which are regarded as Level 1, are made up as follows; Alternative investments Hed e Funds Commodities Diversified Asset Fund Slru¢tured Products Total 2021 2020 145,932 122 258 150,301 123 384 £432,930 £391.381 The Hedge Fund and Commodities are also invested in a UCITS Fund with individual valuations provided by the fund manager based on fair value of individual investments. The Diversified Fund is a Schroders Fund which invests in a wide range of asset classes with the investments in listed investments valued by the fund manager at fair value. The structured products are five structured notes with an investment bank counterparty and included at fair value. P8ge IS of38

LLOYD8 BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 TRUSTEES, REPORT AND STRATEGIC REPORT (cont.) Investments (contlnued) Performance benchmarks are established by the Audit and Investment Committee and agreed with the investment manager. Performance against the agreed benchmarks are reviewed half yearly by the Audit and Investment Committee. The performance compared to benchmark was a8 follows. Fund erformance 2021 2020 7.00 8.20 Benchmark 2021 2020 8.60/0 3.60 Total fund Flnanclal rlsk management The risk associated with the Foundation's investments are monitored by the Audit and Investment Committee and managed on a day-to-day basis by its inveslment managers, Cazenove Capitsl. (l) Market rlsk Exposure- The portfolio is well diversified with holdlngs In a wide range of asset classes. The Foundations, investmenls are made up from holdings in over 30 managed funds selected by Cazenove Capital. The Foundation derives the majority of its income from the covenanted payment from Lloyds Banking Group and is able to take a long-term view of its investments. Sensitivlty- The largest market risk is a fall in the value of equity markets. Based on the position at 31 December 2021. in the event Ihat there was a general 10Yo fall in equity markets there would be a reduction In net income and the value of investments of £92,900 (2020: £108,700). Currency- 85¢k of the Foundation's investments are held in GBP with 140/0 in US $ and 1 % in Euro. A 100kn fall in US $ would result in a reduction in net income and the value of investments £24,499 {2020: £27,350). (il) Credlt rlsk At 31 December 202122Yo (2020: 27Yo) of the Foundation's inveslments were invested in bonds. The Foundations, bond investments are made through holdings in nine {2020.' nine) managed funds selected by Cazenove Capital which spreads the exposure across a large number of counterparties. (111) Llquldlty risk The majority of the managed funds in which the Foundation has invested have daily dealing which would allow the Foundation to realise cash if this were required. Fundralslng Actlvltles Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The legislation defines fundraising as 'soliciting or otherwise procuring money or other property for charitable purposes. In relation to this statement, the Foundation does not undertak& fundraising from the general public and does not Page 18 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 TRUSTEES. REPORT AND STRATEGIC REPORT (cont.) Investments {contlnued} employ professional fundraisers. The charity is therefore not bound by any regulatory scheme and does not consider it necessary to comply with any voluntary code of practice. The Foundation does not have policies in relation to ftjndraising actlvities nor do we consider it necessary to design specific policies and prO￿dureS to monitor activities. PLANS FOR FUTURE PERIODS Future activitles The Foundation will continue to make grants to charities helping disadvantaged and disabled people play a fuller role in the community through the same grant-making programmes and will continue to provide developmental support including mentoring, to help charities to improve their resilience and sustainabilily. The Foundation is committed to delivery of ils core objectives and supporting those Charitles with sustainable activities, measured against identifiable outcomes. The Trustees have agreed the following objectives: to continue to provide grants to support charilies meeting a wide range of needs in the Islands, in accordance with the Foundation's objects and through.its grant-making programmes to continue to provide developmental support including mentoring, to help charities to improve their resilience and sustainabilily COVID 19 and other events The Trustees have considered the impact of the latest developments surrounding Covid 19 on the Foundation, including its connected foundations,.grantees and investments. The trustees note that., The Foundation's staff have been able to work from home, when required through Ihe crisis. Every effort is being made to support existing grant holders including ftexibility on delivery of setvices, grant spend and grant periods, and temporarily relaxing outcome monitoring and reporting deadlines. The Foundation introduced a COVID recovery 35 grant programme tolaling £350,000 to mark the Foundalion's 351h anniversary. The grant programme awarded £35.000 in unrestricted funding to 10 charities addressing domestic violen￿, employability support for people who are disadvantaged, and mental health and wellbeing. The Foundation is closely monitoring the value of its investments. Although the Foundation's investments fell in the early weeks of the pandemic in 2020 the values recovered to show positive returns in both 2020 and 2021. The value of investments has fallen in the early part of 2022 as a result of external events and the Trustees are keeping the situation under review. Although there are currently no restrictions on redemptions from any of the funds in which the Foundation is invested the fall in value may affect any decision to draw upon funds held by Cazenove Capital through disposals to enhance our grant giving capability. Page 17of 38

LLOYOS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 TRUSTEES, REPORT AND STRATEGIC REPORT (cont.) Golng concern As stated above we are able to take a long-term view of our investments and the covenant with the Lloyds Banking Group provides a significant degree of protection. The funding for 2022 has been received in full and for future years the agreement. which requires nine years notice to be given, provides for a minimum payment of £614,000 to be paid each year and that the actual sum paid is based on the profits of the three prior years. The Trustees are therefore confident that they are able to fully fund their operating costs, meet all existing grant commitments and continue grant funding activities for the remainder of the year and throughout 2023. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also directors of Lloyds Foundation for the Channel Islands for the purposes of company law) are responsible for preparing the Trustees, Report and the financial statements in accordan￿ with applicable law and regulation. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 °The Financial Reporting Standard applicable in the UK and Republic of Ireland. and applicable law (United Kingdom Generally Accepted Accounling Practice). Under company law the Trustees must not approve the financial statemenls unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements. the Trustees are required to- select suitable accounting policies and then apply them consistently- observe the melhods and principles in the Charities SORP FRS 102 (second edition October 2019)., make judgments and estimates that are reasonable and prudent., state whether applicable UK Accounting Standards, comprising FRS 102, have been followed, and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charilable company will continue in business. The Truslees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's Iransactions and disclose with reasonable accuracy at any time the financial position of the charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the ch8rilable company and hence for taking reasonable steps for the preventlon and detectlon of fraud and other Irregularities. The Trustees are responslble for the Maintenan￿ and integrity of the charilable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financlal statements may differ from leglslatlon in other jurisdictions. Pagè18 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL IBLINDS YEAR ENDED 310ECEM8ER 2021 TRUSTEES, REPORT AND STRATEGIC REPORT {cont.) STATEMENT OF TRUSTEES, RESPONSIBILITIES In so far as the Trustees are aware= (a} there is no relevant audit information ofwhich the company's auditors are unaware,. and (b) the Trustees have taken all the steps that they ought to have tsken as Trustees in order to make themselves aware of any relevant audit information and to establish that Ihe charitable company's audltors are aware of Ihat information. INDEPENDENT AUDITORS A resolution concerning the appointment of Deloltte LLP as auditors to the Foundation will be proposed at the annual general meeting. This report, including the Strateglc Report was approved by the Board of Trustees on 31 March 2022 and signed on their behalf by.. Philippa Stahelin Chair of Truslees 31 March 2022 Page19of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 Independent auditor's report to the members of Lloyds Bank Foundation for the Channel Islands Report on tho audit of the flnanclal ststgments Oplnlon In our opinion Ihe financial statements of Lloyds Bank Found8tion for the Channel Islands Ilhe 'charilable ¢ompany'}'. give a true and falr view of the slate of the charitable comp8nWs affairs as at 31 December 2021 and of ils incoming resources and application of resources, including SIS income and expendllure, for the year then anded have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, includlng Financial Reporling Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,: and have b89n prepgred in 8ccordance with the requirements oflhe CompanEe$ Act 2008. We have audited the financial slalements, vthlch comprise: the slalement of financial activities the balance sheet the statement of cash flows,. and the related noles 1 to 12. The financial reporting framework that ha8 been applied in their preparation is applicable law and Unlted Kingdom A¢counllng Standards, including Financial Reporting StAndard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounling Practice). Basls for opSnlon We conducted our audit in 8ccordance with International Standards on Auditing (UK) {ISAs {UKI) and applicablo law. Our responsibilities under those standards are further described in the auditor's responsibilities for the 8udit of the financlal statements section of our report. We are independenl of the chailtable company in a¢cordan¢e with the ethical requirements that are relevant to our audit of the financial slalemenls in the UK, including the Financial Reporting Council's (Ihe 'FRC's') Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requiremenl$. We believe that the audit eviden￿ we have obtained Is sufficient and appropriate to provide a basis for our opinion. Conclusions relatlng to golng concern In auditing the financlal slatements, we have concluded thal Ihe Trustees, use of the going concern basis of accounting in the preparation of the flnancial slalements IS appropriate. Based on Ihe work we hav8 P8rfoTmed, we have nol identified any material uncertainties relating to evenls or conditions that, individually or collectively, may cast significant doubt on the charitable ompany's ability to continue a8 a going concern for a period of at least 12 months Irom when the rinancial statements are authorised for issue. Page 20 0138

LLOYDS BANK FOUNDATION FOR THE CHANNELISLANDS YEAR ENDED 31 DECEMBER 2021 Our responsibilities and the responsibilities of the Trustees wtlh respect to golng ¢onwn are described in th& relevant sections of this report. Other Informatlon The other information ¢ompri8es the information included in the annual report, other than the financial 81atements and our audiloffs report Ihereon. The Trustees are responsible for the other information ¢onlained w*thin the annual report. Our opinion on the financlal slatemenls does not cover the other informalion and, except lo the extent otherwise explicitly stated in our report, we do not express any form of a88urance conclusion theT80n. Our responsibility 18 to read the other information and, in doing so, conslder whether the other information is materially inconslstent with the financial stalemenls. or our knowledge obtained in the course of the audit, or othemise appears lo be materially misslated. If we idenlify such material inconslsten¢ies or appgrenl material misstatements, we are required to determine whether this gives rise lo a material misstatement ill the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infomiation, we are required to report thal fact. We hav8 nothing to report In thls regard. Respon8ibilitiè8 of Trusteas As explained more fully irt the Trustees, responsibilit185 statement, the Trustees (who are 8180 the Directors of the charitable company for the purpose of company law) are responsible for th8 weparalion of the financial statements and for being sallsfiod Ihal they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable Ihe preparation of financial slalements Ihal are free from material misstatement, whether due to fraud or error. In preparing the financial stalements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing. as applicable, malleT8 related lo going oncern alld using Ihe going concern bas18 of 8c¢ounling unless the Trustees either intend to liquidate the charitable company or to cease opeiations, or have no realistic all8rnaliv8 but to do so. Auditor's responslbllltles for the audlt of tho financial stalements Our objecllves are lo obtain reasonable as8urance about whether the financial slalements as a whole are free from material misslalement, whelher due lo fraud or error, and10 18sue an auditoff s report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audil cOndu￿ed in accordanc8 with ISAS {UK} will always detect a material misslalemenl when il exists. Misstat8m8nls can 8ris8 from fraud or 8rror and are considered material if, individually or in the aggregate, they could reasonably be expected to influence th8 economic decisions of users taken on Ihe basis of these financial statements. A further des¢riplion of our responsibilities for the audil of the financial statements is located on the FRC'S website al.. www.frc.or .uklaudilorsr&s onsibililies. This description forms part of our auditor's report. Extont to whlch the audlt was conslderéd capablè of detecting Irregularltles, Includlng fraud Irregularities, including fraud, are instances of non-compliance wilh laws and regulations. We design procedures in1Sne with our responsibililies, outlined above, to delect material misslalements in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities. including fraud is d8tailed b810w. Page 21 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLAND8 YEAR ENDEO 31 DECEMBER 2021 We considered the nature of the charitable company's industry and Ils control environment, and reviewed the charitable company's documentation of their policies and procedures relating to fraud and compliance with law8 and regulations. We also enquired of management and TrU￿ee$ about their own identification and assessment of Ihe risks of irregularities. We obtained an underst8nding of the legal and regulatory framework that the charitable company operates in, gnd identified the key laws and regulations that.. had a direct effect on the delermlnation of material amounts 8nd dlsclosures in the financial slalements. These included UK Charities Act and UK Companies Acl,. and did not have a direct effect on the financial slalements bul compliance with which may be fundamental to the chgrilable company's abillly to oparate or to avoid a material penalty. These included the Charity Commission for England and Wales (Charity Commisslon) regulations. We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organi8alion for fraud and how and where fraud mighl occur in the financial $lalemenls. As a result of perferming the 8bDve, we Identified the greatest potential for fraud or non-¢omplian¢e wilh laws and regulations in the following area, and our specific proceduros perfomied to address it are described below.. we identified a fraud Tisk related lo the application of granl expendllure In Ilne wllh charitable objectives, and the correct recognition of liabilitios in respect of grant expenditure. We have addressed this risk by selecllng a sample of grants recognised in the year and reviewing the grant agreements, Board minutes. cash paymenls and relaled information in order to undersland the purpose of the grant, ally conditions present and ascertain the correct lovel of expenditure and related liability lo recognise. In common with all audits under ISAS (UK), we are also required to perform Specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we te8ted the appropriateness of journal entries arKI other adjustments. 8$se$sed whether the judgements made in maklng accounting e8timale8 are indicalive of a potent￿1 bias,- and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. In addition to the above. our procedures lo respond lo the risks identified included the following.. reviewing financial slalemenl di8¢losures by lesting lo supporting documenlalion lo assess compliance wSth provisions of relevant laws and regulations described as having 8 direct effect on the financial slalements., performing analytical procedures to Identify any unu8u81 or unexpected relationships that may indicate risks of material misslatemenl due to fraud,. enquiring of management concerning actual and potential littgation and claims, and instances of non-compliance with laws and regulations; and reading minules of meetings of those charged wtlh governance and reviewing any correspondence with the Charity Commission. Report on othor logal and règulatory requlremonts Oplnlon8 on other matters presorlbed by tho Companies Act 2008 In our opinion, based on Ihe work undertaken in the course of the audll.. Page 22 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2021

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Directors' report included within the Trustees' report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

We have nothing to report in respect of these matters,

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Anderson FCCA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor London, United Kingdom 31 March 2022

Page 23 of 38

LLOYDS BANF( FOUNDATION FOR THE GHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2021 Note Unrest- Rest- rlcted ricted 2021 2021 Total Unrest- Rest- rlcted rlcted 2020 2020 Total 2021 2020 Income from: Donations Investment income Total 868,690 23,583 892 273 868,690 868,293 23,583 892 273 890,784 868,293 22,491 890,784 Expenditure on: Investment fees Charitable a¢tivitses Total 13,654 3a 1,173,317 1 186 971 13,654 12,304 1 173 317 1,062,424 1186 971 1074.728 12,304 1,062,424 1 074 728 Net (expenditura) befor8 gain on Investment (294,698) {294,698) (183,944 {183,944) Net unrealised gain on investments 128,612 128,612 155,979 155,979 Net (expendlture)I income (166.0861 {166,086) (27,965) {27,966) Net movement In funds (166,086) (166.086) (27,965) {27,965) Reconclllatlon of funds Funds brought forward Funds carrled forward 1,814,862 1.814,862 1.842,827 1.842,827 9 1,648,776 1,848,776 1,814.862 1,814.862 All recognised gains and losses have been included in the Statement of Financial Activities and the amounts included are derived from the continuing activities of the Foundation. The notes on pages 27 to 38 form part of these financial statements. Page 24 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 BALANCE SHEET AS AT 31 DECEMBER 2021 Note Total 2021 Total 2020 Flxed assets: Tangible assets Inveslments Total flxed assets 1,791499 2 062,961 1 791499 2 062 961 Current assets: Debtors Cash at bank and in hand Tolal current assets 917 86,210 87,127 1,157 153 507 154 664 Llabilitles: Creditors.. Amounts falling due within one year (197.450) {347,9631 Net current liabilltles 110323 193,299 Total assets loss current liabilittes 1,681,176 1,869,662 CrÈditors'. Amounts falling due after more than one year (32,400) (54,800) Total not assets 1648 776 4 814 862 The funds of the ¢harlty: Unrestricted funds 1,648,776 1.814,862 Total charl funds 1648 776 1814 862 The financial statements including the notes on 27 to 38 were approved and authorised for issue by the Trustees on 31 March 2022 and signed on their behalf by: Philippa Stahelin Chair of Trustees Page 25 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2021 Notes 2021 2020 Cash flows from operatlng acllvltles Net cash used in eratin activitles 490 954 377 664 Cash flows frorn Invasting actlvltles: Income from investments New investrnent and reinvested income Proceeds from sales of investments Movements on term deposits 23,583 22,491 {596,103} 1650,735) 976,103 635,620 20,724 140,509 Net cash generatsd froml(used In) Investlng actlvltlès 423.657 147,883 Change In cash and cash equivalents In tho reportlng oar Cash and cash equlvalenls at Ihe beglnnlng of th8 re ortln ear Cash and cash equlvalents at the end of the reporting ear (67.297) (229,681) 153,507 383,188 {B) 86,210 153,507 (AINET CASH FLOWS USED IN OPERATING ACTIVITIES 2021 2020 Net (expendlture)I for the reporting year Adjustments for.. Income from investments Decreasel(increase) in debtors {Decrease) in creditors Gain on investments Net cash used in (166.0861 {27,965) (23,583) (22,491) 240 (181) (172,9131 {170,948) 128.612 155 979 490 954 377 564 eratln actlvitles (B)ANALYSIS OF CASH AND CASH EQUIVALENTS 2021 2020 Cash in hand Total Cash and cash e 153 507 153,507 uivalent8 The notes on pages 27 to 38 form part of these financial ststements. Page 26 of 38

LLOYDS PANK FOUNDATION FOR THE CHANNEL18LANDS YEAR ENDED 31 DECEMBER 2021 NOTES TO THE FINANCIAL STATEMENTS I. ACCOUNTING POLICIES Basls of preparatlon The Foundalion is a public benefit entity, is incorporated in England and Wales as a company limited by guarantee not having a share capital. There are currently nine Trustees who are also the members of the company. Each member has undertaken to contribute to the assets in the event of winding up a sum not exceeding £1. The charity is a registered charity- The registered office is given on page 3. The financial statements have been prepared on a going concem basls under the historical cost convention. as modified by the revaluation of investments, and in accordance with applicable Accounting Standards in the United Kingdom, including the Charities SORP FRS 102 (second edition - October 2019), and in accordance with the Companies Act 2006 and Charities Act 2011, using consistently applied accounting policies. Lloyds Bank Foundation for the Channel Islands meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or Iransacts'on value unless otherwise statsd in the relevant accounting policy note(s). Fund accounting Restricted and unrestricted funds are separately disclosed as set out in nole 9. The different funds..hel.d aro defined below.. Unrestricted funds The Foundation's unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objeGtives of the charity- Restricted funds These are funds which are subject to specific restrictions imposed by fhe donor. Investments and cash Listed investments are inclLided in the Balance Sheet at fair value which is their closing bid price on the current or previous trading day. Details of the nature of the investment assets, valuation rnethods and risk management are included in the trustee5' report. Derivatives are recognised in the Balance Sheet at fair value. Managers of segregated funds may enter into derivatives as part of their portfolio risk management, fair values of these derivatives are provided by the fund managers. Realised galns and losses on disposals in the year and unrealised gains and losses on investments at the Balance Sheet date are included in the Statement of Financial Activities for the relevant underlying fund. All investment income is treated as unrestricted. Cash at bank and In hand comprises of bank accounts and term deposits. Page27 of38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDEO 310ECEMBER 2021 NOTES TO THE FINANCIAL STATEMENTS (cont.) 1. ACCOUNTING PQLICIES {Continued) Flnanclal Instruments other than investments The Charity has financial assets and financial liabilities of a kind that qualify as basic and complex financial instruments. Basic financial instruments are measured at their settlement value in the case of current assets. Valuation of assets Tangible fixed assets are included at historic cost less accumulated depreciation. Capitallsatlon and depreclatlon The minimum value forthe capitslisation of tangible fixed assets is £1,000. Depreciation is calculated so as to write off the cost of tangible fixed assets on a straight-llne basis over the expected useful lives of the assets concerned. The principal rates used are: Computer equipment Furniture and other office equipment 33% per annum 100A per annum All assets are fully depreciated but remain in use. Income Income is recognised in the Statement of Financial Activities when the Foundation is entitled to the income, performance conditions attached to the income have been met, receipt is probable and Ihe amount can be measured reliably. The covenanted income is recognised in the year to which the Foundation is entitled to the income. Interest income is recognisad on a receivable basis which reflects the effective interest method. Dividend income represents the Foundation's share of dividends received from holdings in investment funds. The income recognis8d represents the amount credited to the investment fund. Donated services Donated services and faGilitFes are valued and included as income and expenditure at the price the Foundation estimates it would pay in the open market for an equivalent service or facility. Recognition of expenditure All expenditure is included on an accruals basis in the period in which It is incurred. Grant expenditure is recognised where there is a legal or constructlve obligation to pay. Grants, both single and multi-year, are re¢ognised in the financial statements as liabilities after they have been approved by the Trustees, the recipienls have been notified and there are no further terms and conditions to be fulfilled which are within the control of tho Foundation. Page 28 of 38

LLOYOS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 OECEMBER 2021 NOTES TO THE FINANCIAL STATEMENTS (cont.) ACCOUNTING POLICIES (Continugd) For the majority of multi-year grants Ihe full amount is recognised on award and any amount relating to future years is included in grants payable. There are occasions when it becomes necessary to withdraw a grant which has been approved in a prior year,. where this happens, the funds revert to the original unrestricted or restricted reserve. Penslon costs The Foundation does not participate in any pension schemes. Allocatlon of expandlture Charitable activities include the direct costs of the grant awards and the indirect support costs of delivering Ihe grant programmes. Support costs (including governance costs) are allocated across charitable activities on the basis of expenditure on grant programmes. Taxatlon The Foundation is a registered charlty, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the Foundations primary objects, ifthese profits are applied solely for charitable purposes. Accountlng estimatos and Judgements The Charity makes estimates and assumptions concerning Ihe future. The resulting accounting estimates will. by definition, seldom equal the related actual results. There are no estimates and assumplions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Page 29 of 38

LLOYL)S BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED31 DECEMBER2021 NOTES TO THE FINANCIAL STATEMENTS (cont.) DONATIONS Unres- Re8- tricted tricted 2021 Unres- Res- Iricted trlct6d 2020 Donations from Lloyds Banking Group Covenant income Operating costs contribution Donated servlc6s External audit fees paid by Lloyds Banking Grou 784,390 75,000 784,390 784,368 75,000 75,000 784,368 75,000 9,300 9,300 8,925 8,925 868.690 868,690 868 293 868 293 ANALYSIS OF EXPENDITURE a) Charitable activities Grants other Support Charltable Costs activities 2021 Grants Programmes Jersey Guernsey 35 Grant Programme - Jersey 35 Grant Programme - Guernsey 35 Grant Programme - Alderney 295,008 397,907 175,000 140,000 35,000 1,042,915 37.332 332,340 45,886 443.792 20,180 195,180 16.144 156,144 4,036 39,036 123,577 1,166,492 Other activltles Matched Giving Training and events 5,169 596 5,765 1,080 1,060 5.169 596 6,825 Total 1048 084 1060 124173 1 1733q7 Support costs have been allocated on the basis of expenditure on grant programmes. Pago 30 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 NOTES TO THE FINANCIAL STATEMENTS Icont.) 3. ANALYSIS OF EXPENDITURE {cont.I Grants Other payable Charitable activitlos Support Costs 2020 Grants Programmes Jersey Guernsey Covid 19 emergency grants Jersey Covid 19 emergency grants Guernsey Alderney 307,773 359,977 172,811 71,249 24,000 935,610 46,334 46,334 11,881 11,881 354,107 408,311 184,492 83,130 24,000 116,430 1,052,040 other actlvlties Matched Giving Training and Events Other fvnding 5,799 100 2,376 8.175 100 2,109 2.109 5,899 2,376 10,384 Total rants able 941509 118806 1062424 b) Grant awards 2021 £ No. 498.736 20 500,547 537,907 12 441.991 36,000 24,000 100 2020 Grants awarded Grants in Jersey Grants in Guernsey Alderney Discretionary grants Total Grants 15 13 29 1,071,643 33 966,638 Other actlvities Matched Givin 14 18 Total Granls and Matched Glvlng awarded in the year 1,076,812 972,437 Less grants cancell8d or refunded In the ear Grants payable (Note 4c) (28,728) (30,9281 941,509 1,048,084 A full li?t ofApproved Grants for 2021 is set out in Note 12 on page 37 and 38. Page 31 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 NOTES TO THE FINANCIAL STATEMENTS (cont.) 3. ANALYSIS OF EXPENDITURE Icont.) c) Grants payable The table below shows reconclliation between grant amounts approved during the year and amounts paid during the year. 2021 2020 Reconciliatlon of grants payabl8 Amounts outstanding at 1 January 395 021 567 825 Grants approvedlcancelled In year Grants approved in the year Grants cancelled Grants payable in the year 1,078,812 14,364 1,062,448 972,437 10,765 961,672 Grants paid during the year 1,233,848 1,134476 Due within one year (Note 7) Due afier more Ihan one ear Note 8 Amounts oulstandin at 31 December 191,221 32,400 223 621 340,221 54,800 395,021 Cancellations in 2021 relate to one Jersey grant (2020-. Jersey grants)- d) Support costs Note 2021 2020 Staff costs Governance costs Other costs 3e 3f 65,492 22,171 56,720 21.464 40,622 Total 124,172 118806 e} Staff costs 2021 2020 Wages and $81aries Social Security Costs Other Costs 60,000 3,960 51,700 4,025 995 Total The monthly average number of persons employed by the Foundation during the year was one (2020.. one) who is the full time Executive Director. Page 32 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 NOTES TO THE FINANCIAL STATEMENTS (cont.) 3. ANALYSIS OF EXPENDITURE {cont.) One employee received emoluments of£60,000. fj Governance Costs 2021 2020 Company Secretary, Finance and Administration Audit fee Trustee costs Total 10,532 9,300 10,442 8,925 2,097 Company Secretary and Finan￿ costs include £8,526 payable to the Lloyds Bank Foundation for England & Wales in respect of time spent by that Foundation's Company Secretary and Finance department for administration of the Foundation for the Channel Islands (2020- £8,442). The remaining £2,006 (2020.. £2,000) largely represents general administration support given by one individual. The auditors were remunerated with an allocation from the Lloyds Banking Group audit fee. As a result, the external audit fee has been treated as a benefit in kind from the Lloyds Banking Group. The amount recognised is the fair value Ihat the Foundation believes they would pay for external audit services if the Lloyds Banking Group did not pay for the amounts on their behalf. The Trustees, who are also the directors of the Company, received no remuneration during the year. Five of the Trustees received £2,339 in reimbursed expenses relating to travel, subsistence and other expenses {2020.' £2.097 four Trustees). 4. TANGIBLE FIXED ASSETS Computer equlpment and software Total 2021 Total 2020 Cost At beginning of the year Dis osals At end of the 6,054 6,054 6,054 ear 6,054 Accumulated Dapreciation At beginning of the year Depreciation Dis osals At end of Ihe 6,054 6,054 6,054 ear Net book value at beginning of the year Net book value at end of the ear The fixed asset is ￿llY depreciated. and still in use. Page33 of 38

LLOYOS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENOED 31 DECEMBER 2021 NOTES TO THE FINANCIAL STATEMENTS (cont.) 5. INVESTMENTS 2021 2020 Investments listed or traded on a recognised stock exchange Derivative financial instruments Cash held b inveslment mana Total 1,674,049 1,943.153 74,083 61,671 ers 1,791.499 2.062,961 Movement in the year As at 1 January Additions Disposals Net unrealised gainsl(losses) Net realised gainsl{losses} Reinvested net income Cash movements As at 31 December 2,062,961 2,032,374 586,827 641,128 {976,103) (635,620) 109,998 100,246 18,614 55,734 9,926 9,608 (20,724)_.-.---(140,509 1791499 2 062,961 2021 2020 Investment Income Bank interest Dividends Total 579 21,912 The historical cost of the Foundalion investments (excluding cash) as at 31 December 2021 was £1,496,161 {2020= £1,773.425)- Details of the nature of the investment assets, valuation methods and risk management are included in the trustees, report. 6. DEBTORS 2021 2020 Prepayment Total 917 917 1,157 7, CREDITORS: amounts falllng duo wlthln one yoar 2021 2020 Grants oulstanding {Note 3c} Accruals Other creditors Total 191,221 5,500 729 97 450 340,221 4,500 3,242 347 963 CREDITORS: amounts falling due after more than one year 2021 2020 Grants outstandin Total Note 3c 54,800 54,800 Page 34 of 38 32,400

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 NOTES TO THE FINANCIAL STATEMENTS (cont.) MOVEMENT IN FUNDS Balance at Total 1Jan Incoming 2021 r6sour¢e8 Total Change In Balanc8 at resources market value 31 Dec expended of 2021 Investments Unrestrlctod funds Total 1,814 862 1,814,862 892 273 1,186,971 892,273 (1,186,971) 128 612 1,648,776 128,612 1,648,776 Balance at Total lJan incoming 2020 re8our¢e5 Total Change In Balance at resources market value 31 Dec QXP8nded of 2020 investments Unrestrlcted funds Total 1,842,827 1,842,827 890,784 1,074.728 890,784 {1,074,728) 155,979 1,814,862 155,979 1,814,862 10. GUARANTEE COMPANY Th8 Foundation is a company limited by guarantee not havlng a share capital. The liability of the members is limited by the Memorandum of Association to £1 each. The number of Trustees who are also members at 31 December 2021 was nlne (2020.. nine). 11. RELATED PARTY TRANSACTIONS a) Conn&ctod Foundatlons The following Foundations are connected, having common and related objects.. Lloyd8 Bank Foundation for England & Wal8S Society Building 8 All Saints Street London N19RL The Foundation paid £8.526 (2020.. £8,442) to Lloyds Bank Foundation for England & Wales in respect of time spent by that Foundation's staff for administration of the Foundalion for the Channel Islands. In 2020 the Foundation paid £1,715 to the Lloyds Bank Foundation for England & Wales towards Ihe Cost of developing IT systems for use by both organisations in grant administration. In 2021 Ihere was no such payment. Halifax Foundation for Northern Ireland Clifton House Heritage Centre 2 North Queen Street Belfast BT15 1ES Page 35 of 3B

LLOYDS BANK FOUNDATION FOR THE GHANNEL ISLANDS YEAR ENOED 31 CIECEMBER 2021 NOTES TO THE FINANCIAL STATEMENTS (cont.) 11. RELATED PARTY TRANSACTIONS Continued Bank of Scotland Foundation The Mound Edinburgh EH1 IYZ b) Related company The Foundation is related to Lloyds Banking Group plc as it derives its revenue primarily from Lloyds Banking Group plc. In December 2013 a new funding agreement was entered into with Lloyds Banking Group plc and from 2014 the Foundation annually receives a share of Lloyds Banking Group plc profits, subject to a minimum amountof£614,000 and a maximum amount of £1,535,000. In addition to the covenant income of £784,390 {2020- £784,368) the Foundation received £75,000 (2020: £75,000) to cover a proportion of operating expenses. The Foundation's principal bank is Lloyds Banking Group Plc. At 31 Detsmber 2021 the Foundation held a cash balance with Lloyds Banking Group plc of £86,210. At 31 De￿rnber 2020 there was a cash balance of £153,507. The Foundation received interest income of £3 (2020- £579) from cash balances held with Lloyds Banking Group plc. In August 2018 the Foundation entered into an agreement for Cazenove Capital to manage the investment portfolio. Trustee David Hodgetts's close family member is a Client Director in the organisation, however, does not manage the Foundation's portfolio. David Hodgetts was not involved in the tender process to appoint an investment manager and was not a member of the Audit and Investment Committee which monitors the investment managers performance during his tenure as a Trustee. c} Transactlons All Trustees must declare any potential confiicts of interest concerning funding requests and must leave the Board Meeting until the decision on the relevant funding request has been concluded. During the year a number of grants and payments were made where a Trustee of the Foundation is affiliated to a connected organisation. Brian Heath Is a Board Member and Non-8xecutlve Director of Myvolce Independent Advocacy Jersey. In the year ended 31 December 2020 the Foundation made a donation of £30,600 which was paid in full in the year. In the year ended 31 December 2021 there were no donations made to the charity. Myvoice also benefited from a Lloyds Bank mentor in 2021. Page 36 of38

LLOYOS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 NOTES TO THE FINANCIAL STA TEMENTS (conl.) 12. LIST OF APPROVED GRANTS FOR 2021 Alderne rants 2021 35 Grant Pro ramme - COVID Recove Alderne Mind Unrestricted for eneral charitable ur oses Tolal a roved for Alderne rant Guernse rants 2021 Towards the salary of the Autism Wellbeing and Enablement Facilitator 20th anniversary communication and awareness raisin cam ai Towards the ¢harit '$ overall strate ic lan Re-development of Ihe site including new glasshouses and training, workshop and administrative buildin Develo menl of Disabili Confidence Trainin Towards the sala of the Centre Mana er Toward staffing costs for the running of the Guernse Centre Towards the cost of the Community Lead for six months Towards the salary for a Senior Youth Worker to deliver child sexual exploitation and advocac workstreams Autism Guernse Bowel Cancer Guernse Guernse Mind 20,000 GROW Ron Short Centre St x Centre 100,000 30,000 Trauma Recove Centre 14,115 Vive La Vallette Youth Commission Total 397,907 ramme - COVID Recove 35 Grant Pro Carers Guernse Guernsey Carlng for Ex- Offenders Unrestricted for eneral charitable ur ses 35,OCrf) Unrestricted for eneral charitable ur oses Guernse Safer Ern ment Trust 35,000 Unrestricted for Unrestricted for eneral charitable eneral charitable ur oses ur oses Total 140 000 Total a roved for Guernse 537 907 13 rants Page 37 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2021 NOTES TO THE FINANCIAL STATEMENTS (cont.) 12. LIST OF APPROVED GRANTS FOR 2021 Jerse rants 2021 Towards the salary of the Family Events Co- ordinator Towards the Learning for Life eclucation ro ramme Towards the sala of the Co-ordinator Running costs for an after-school club for children with additionallcom lex needs Towards the salary of the Family Liaison Mana er 50/0 Autism Jerse 17,500 Beresford Street Kitchen Bri hti 24,367 Centre Point Trust 28,900 Famil First Jersey Action Against Rape 25,000 33,000 59,400 Sala of the Lead Counsellor Towards a eri at8tic Senior Su Jerse Childcare Trust Jersey Eating Disorder Su ort ort Worker 25.000 Toward salaries and core o eratin costs Towards the Support Worker for the Acorn Trainin and Develo ment SeNice Towards the salary of the ftjll-time member of staff Jerse ment Trust 38.294 Word and Numbers Matter 37,275 Totsl 323.736 35 Grant Pro ramme - COVID Recove Beresford Street Kitchen Jerse Recove Colle Jerse Women's Refu NSPCC Jerse The Shelter Tru8t Unrestricted for Unrestricted for Unrestricted for Unrestricted for Unrestricted for eneral charitable purpose5 eneral charitable purposes eneral charitable ur oses eneral charitable eneral charitable 35,000 35,000 35.000 175 000 ur oses ur oses Total Total a roved for Jorso 498,736 15 rants Pagè 38 of38