2025-12-31-accounts

Lloyds Bank Foundation for England and Wales Trustees report and financial statements 2025

July 2026

Intro

Contents

Lloyds Bank Foundation for England and Wales is an independent charitable foundation, backed by Lloyds Banking Group and the people within it. We want everyone to be in a good place - personally, in a home that’s a good place to live, and in a community that’s a good place to belong.

We back people and communities across England and Wales, to make that happen. We connect and catalyse community-led change, providing the money, time, tools and connections that build organisations’ capacity and capability, to make people’s lives better and their communities stronger.

01 A year of impact

• 4 A word from our Chair 6 A word from our CEO

• 8 The impact of a decade’s investment

04 Financial review

• 38 Overview 41 Investments 43 Financial risk management 44 Reserves 45 Risk 48 Governance

02 Catalysing

10 Supporting new ideas 13 Helping good ideas grow 14 Housing

05 Independent Auditors’ Report

• 52 Report on the audit 55 Report on legal and other regulatory requirements

03 Connecting

22 Building bridges 28 Opening doors 34 Personal resilience 37 Looking ahead

06 Financial statements

• 57 Financial statements 61 Notes on the financial statements 65 Accounting estimates and judgements 83 Reference and administrative details

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Lloyds Bank Foundation Annual Report

3

A word from our Chair

A particularly special year for the Foundation

When you back brilliant people, brilliant things happen. The pages of this report are brimming with proof of that. There are stories from across England and Wales, where people and communities spent 2025 creating homes to prevent homelessness, and turbocharged services to help people become more financially resilient. They raised millions of pounds of new money for great ideas, created jobs, and forged new relationships. They spread joy, and restored hope.

Enver Solomon OBE, Acting Chair

2025 was a special year for the Foundation - as it was our 40th anniversary. Throughout the year, it was a privilege to play our part in backing communities. From opportunities for people who live and breathe communityled change to shape the direction of government funding, to Enfield’s young people challenging government ministers to do better for care leavers, the bridges we built and doors we opened in 2025 have put others in the driving seat of change. And with Lloyds Banking Group’s backing, we’ve broken our own records and boosted Group colleagues’ giving of time and money to communities.

2025 at a glance

684 community organisations directly supported (662 in 2024)

613k

Even as we invested £23.7 million in communities, we also took time to look back. Over 40 years, we’ve made 45,000 grants worth nearly £1 billion in today’s money. To make sure we build on that, we took a deep dive to understand the impact of the last decade. That research shone the spotlight on how the organisational development and capacity building support we offer our partners – the secret sauce of our services – packs a punch. With it, charities grew at more

people reached by the organisations we invested in (297k in 2024)

27

Powered community-led change in 27 local places (27 in 2024)

than double the speed, were less likely to close, and found a stronger financial footing.

With this learning under our belts, we turned to the future. We began to build our new strategy: In a Good Place. It’s all about how we scale our impact, harnessing the power of Lloyds Banking Group and new partners to do so.

We’ve already brought into 2026 a great urgency to make the ambition of that new 9 year strategy real. Because poverty is deepening. Homelessness is rising. Communities are divided. Our research estimates that as many as 15.6 million people in England and 860,000 people in Wales are not in a good place.

Growing giving

521

Lloyds Banking Group volunteers making a difference through our connections (361 in 2024)

£1.9m

to multiply the time and money raised for 1,419 charities by Lloyds Banking Group colleagues (£1.9m in 2024)

1,419 charities supported (1,340 in 2024)

I want to thank my predecessor, Dame Ann Limb, who stepped down in March 2026. Ann has left the Foundation in a strong position, enabling the impact you’ll read in the following pages. I’m delighted to take on the role of Acting Chair until we recruit our new Chair of Trustees. I’m grateful to our Board of Trustees for their continued support and guidance and the Foundation’s staff for all of their hard work.

The year ahead will be an exciting time for us as we take forward our ambitious new strategy to ensure everyone in England and Wales is in a good place.

The resources communities need

£22m

invested in grants to organisations in communities (£20.3m in 2024)

£2.4m

invested in organisational development and capacity building support (£1.8m in 2024)

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Lloyds Bank Foundation Annual Report

A word from our CEO

We’re proud to back people doing amazing things

sense of belonging. 2025 showed us just what’s possible when local people are put in the driving seat.

2025 was also our 40th year. To mark the occasion, we brought together hundreds of changemakers from across civil society to kickstart a movement. Because our world is moving, the challenges we face are evolving, and we collectively need to answer the urgent call for change. And that’s just what we saw at our Fortyfied conference: the ground-breaking work already happening within communities.

Matt Hyde OBE, Chief Executive

On collaboration, we’ve seen just how much more we can achieve when we pool our efforts with that of Lloyds Banking Group. We jointly published research showing the crucial role of small community organisations in improving people’s financial wellbeing.

We want everyone in England and Wales to be in a good place. It’s a bold ambition, but since joining the Foundation, I’ve seen the determination, energy and possibility within communities to achieve just that. I’ve met so many people stepping up to make their neighbours’ lives better and their communities stronger. Day in, day out. Our role as a funder is to connect all of these brilliant people and use all of our resources to catalyse community-led change.

We presented these findings at an event connecting charity partners with MPs and Peers. And we awarded a share of £2.6 million to 33 charities to help Deaf and Disabled people with their financial resilience. Our strengthened relationship with Lloyds Banking Group is setting us up for a future where we will grow the giving of time and money together.

We’re proud to back people doing amazing things. Like Carers UK and their campaign that led to debt being written off or reduced for thousands of carers, helping more people be in a good place personally. And unityMK who supported 85% of their nightshelter guests to move on to positive accommodation and be in a home that’s a good place to live. And nationally, we’re backing Citizen Hubs to scale, so that more people can find spaces that spark opportunity and a

As well as reflecting on our past, 2025 was about laying the foundations for our future. We hosted a gathering between the UK government and civil society where Prime Minister Keir Starmer launched the Civil Society Covenant. I’m proud to be joining leaders from across civil society in the newly formed Civil Society Council. I’ll be putting front

have all played a part in shaping our future direction. I want to thank everyone who collaborated with us to develop our new strategy In a Good Place. I’m also immensely proud of, and grateful to, the Foundation staff and volunteers who have worked tirelessly throughout 2025 to support the impact that you’ll read on the pages that follow.

and center what we hear every day from people and communities, making sure they’re at the heart of Government decision making.

These same community-led organisations, alongside our friends at Lloyds Banking Group, leaders from across the public sector and our peers

£1.1m

A North East B £2.3m

North East (£1.2m in 2024)

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B
North West
(£2.4m in 2024)
C £1.6m A
Yorkshire and
the Humber
(£1.3m in 2024)
D £1.1m
C
Wales
B
(£1.4m in 2024)
E £1.8m
West Midlands
(£1.3m in 2024) F
E
F £933k
East Midlands
(£1.4m in 2024) D J
G £1.8m
South West I
(£1.3m in 2024)
G H
H £2.1m
South East
(£2.1m in 2024)
I £5.6m
London
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(£3.3m in 2024)

£1m

J

East of England (£1.4m in 2024)

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The impact of a decade’s investment

2025 was the Foundation’s 40th anniversary. To understand the difference our investment has made over the past decade (2014-2025), we commissioned new independent research – the first of its kind at scale – to understand the impact of nearly 3,000 grants made to 1,800 charities over that time.

The research shows that, when we’ve invested in charities, they’ve:

Grown at

double the rate of similar charities we didn’t fund.

Created almost

1,700 jobs and that’s just at the bigger ones.

Attracted

more

money

from other partners.

Photo credit: Branches hostel

On average, charities backed by Lloyds Bank Foundation grew at double the rate of similar charities

Median income of LBF-backed and similar charities LBF didn’t back (0=latest grant date)

How you back communities matters. We backed charities with money, yes, but also with the tools and resources they needed to speed up and spark change. This data showed it’s that extra support we offer that really makes the difference to charities’ resilience.

Charities that took up our organisational development and capacity building support:

Grew even faster

8.6%

annually on average.

Were

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Photo credit: Skills Enterprise
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less likely

to close.

Particularly benefited from our Skills Based Volunteering partnership with Lloyds Banking Group, with charities accessing this service growing by 10.6% annually.

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9 Lloyds Bank Foundation Annual Report

Photo credit: One Roof

Supporting new ideas

• Ending racism as a team in the

Catalysing

Speeding up and sparking change, by supporting new ideas and helping good ones grow.

Every day, game-changing ideas bubble out of the people and communities we work with. For many of the organisations we give money, time and tools to, we’re the source of their first major, multiyear grant. In 2025, we backed 148 organisations that were new to us, committing £12.9 million to them, so they get their first chance to turn their ideas into reality with solid support behind them. Ideas like:

• Solving homelessness with biscuits in Nottingham, where Half the Story were able to set up a new bakery employing people who find getting and keeping jobs difficult. In 2025, we backed them with £100,000 to help expand their bakery, enabling them to create the capacity to double the number of jobs they provide from 20 to 40, and go from baking 1 million to 6 million biscuits a year

• We also introduced them to Lloyds Banking Group, who are now committing to purchase thousands of biscuits – and create thousands of hours of work - from them each month

• North East, where the North East Anti-Racism Coalition were able to unite 1,000 local organisations behind a movement to tackle racism head on. They’re using training, research and best practice to change minds across the region.

Many of these ideas start at the kitchen table. This year, we’ve seen just how much of a difference our early investments can make to help them make the jump to the national stage.

In 2015, we made the bold choice to provide £1 million to an innovative programme called The Drive Project. We were the first and largest funder.

The Drive Project worked with almost 7,000 perpetrators of domestic violence to reduce the risk of them causing harm again. It had a major impact at the time, reducing the risk to victims in 82% of cases.

Convinced by the evidence, in 2025, the government committed £53 million to deliver the Drive Project at scale.

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11 Lloyds Bank Foundation Annual Report

Helping good ideas grow

When funding comes full circle, with Gloucester’s Honour Thy Woman

“After my abuser set fire to my home, I had nothing left. It was Lloyds Bank that helped me rebuild. I couldn’t believe the support they gave me – and it sparked an overwhelming desire in me to give back.

accompany her to appointments. In a few years, she has grown in confidence and is now part of the friendship group that encourages other women to share their experiences.

It was about a year later, with that still in the back of my mind, that the idea for Honour Thy Woman began to become reality. We’re more than a charity, we’re a movement, where women with experience of domestic abuse support each other to move forwards.

We’ll be able to help more women like her with the funding from Lloyds Bank Foundation. Their belief in us is more than funding; it is a reminder that hope, healing, and dignity matter.

Their support really feels like the story coming full circle. This has been my dream since I started the organisation. I don’t think the Foundation understands how much this means to me.”

The work we do marks the beginning of healing.

One client found it difficult to leave her residence, and was too afraid to see a dentist or doctor because she feared being touched, particularly by a man. With our support, she’s improved; we were able to help her find safe accommodation and

Keasha Kellam, Founder of Honour Thy Woman

Through our £2.4 million investment in organisational development and capacity building this year, we’ve helped community organisations access the right help at the right time for them.

• 130 organisations got help with computers and other IT essentials.

• 119 organisations got help to improve their fundraising.

• 94 organisations got help with AI and digital.

• 74 leaders of organisations got help to develop and grow.

In 2025, we took a major step to open up our doors and provide more community organisations with that help. Alongside eight expert partner organisations, we secured a partnership with the National Lottery Community Fund that will enable 640 charities and social enterprises to access the tools they need to be stronger and more resilient – so they can ultimately help more people be in a good place.

This is our first leap forward. It will not be our last. Through our new strategy, we’ll take what we’ve learned and scale our impact even further.

“The best development opportunity I’ve had — genuinely transformative for my leadership.”

STAMP Revisited, Middlesbrough

“We feel much more confident in developing a case for support and stewarding potential donors…This support has been hugely confidence building for our whole team.”

Kent Refugee Action Network

“We’re now close to securing a 25 year lease on a property— and we have a business plan in place.”

Ileys Community Association, Sandwell

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How our partners helped more people say“I’m in a good place personally.”

Throughout 2025, we backed people and communities to drive change that meant more people could say “I’m in a good place personally” – with a focus on financial resilience. Our partners helped people with:

• Money and budgeting skills – running budgeting workshops, reducing debt, and building people’s confidence handling money.

• Crisis support – providing food and essentials, emergency vouchers, and negotiating energy bills.

• Putting money directly into people’s pockets – helping people access the benefits they’re entitled to, navigate online systems, apply for grants, and find work.

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A

In the Tees Valley

9% of organisations brought together to tackle poverty pledged to work more closely to increase financial resilience and respond to the poverty priorities identified by local people.

B

In Bangor

RASA Support Centre North Wales’s mobile therapeutic unit cut waiting times for low income survivors from sector averages of 18+ months to 45 days.

C

In Warrington

Warrington Women’s Aid supported women escaping domestic abuse develop budgeting and debt management skills so they can regain control over their finances.

D

In Dudley

Top Church Training received 100 sign ups for their new food club, helping combat food insecurity.

E

In Penzance

West Cornwall Women’s Aid helped women access over £25,000 of funds to pay water and energy bills, buy groceries, and address debt.

F In Bristol

Borderlands supported 350 people in financial security through their drop-in Welcome Centre.

G

In Reading

93% of families helped by Reading Mencap to navigate social care charging, benefits and financial assessments feel better able to cope emotionally.

H

In Hackney

Turning Corners helped people manage energy debt and put more money in their pockets, including 18 young people who received PIP.

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In the East

Carers UK’s influence means many thousands of carers across the country will see their debts written off or reduced.

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76%

successfully found employment, education, volunteering or further training

80%

achieved independence (measured through five key areas: housing, money, health & wellbeing, relationships and work).

1 in 3

Marie’s story: “I’ve done it, so can you”

“I found reading and writing hard, but there was always someone to help me. My support worker pushed me in the right direction because she believed in me. A lot of people in Luminary believed in me before I believed in myself.”

“I was at the end of my tether and wanted some sort of change. My children had been removed from my care. I was having a tough time with social services and struggling after the pandemic.”

Then Marie* found Luminary, a social enterprise helping women find jobs and become independent. Almost all the women helped by Luminary Women have experienced violence because of their gender, 96% are on low incomes, and 64% have experience of homelessness. Lloyds Bank Foundation has backed Luminary Women with a £77,500 grant, as well as new laptops, and support with their brand, structures, systems and governance.

Luminary Women helped Marie break out of a cycle of drugs, alcohol and depression. She got work experience in a kitchen, applied for a Café Apprenticeship, and is now a Café Assistant.

“I never thought I’d last two years, let alone get a job. Luminary has built my stability, my community, and my confidence. I’ve even started to rebuild my relationship with my family after 30 years.”

“Luminary made a big difference. I learned how to bake, but also some social skills. Before, I struggled to speak to strangers when sober.

“There are so many women out there like me, and I get to say to them ‘There is life after all of this. You can get through it’.”

Marie is one of 56 women supported by Luminary through its two-year programme last year. *Marie’s name has been changed

of Luminary Women’s workforce are now drawn from programme graduates.

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17 Lloyds Bank Foundation Annual Report

How our partners helped more people say “I’m in a home that’s a good place to live.”

Throughout 2025, we backed people and communities to drive change that meant more people could say “I’m in a home that’s a good place to live” – with a focus on preventing homelessness and making new homes available. Our partners:

• Prevented homelessness – helping evictions be avoided, and getting people access to money and bank accounts.

• Supplied crisis support – providing food and essentials, community, support workers, day centres, and access to health services.

• Took on new homes – ensuring people can access the kind of housing they need, with the support wrapped around it so they can stay.

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In Lancashire

SLEAP have progressed negotiations to turn an empty church building into a 7 bedroom property for homeless young people.

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In Kendal

Springfield Domestic Abuse Support bought a 3 bedroom property for male survivors of domestic abuse.

C

In Middlesbrough

The Halo Project bought 4 new properties to provide more housing for Black and ethnic minority women and children who’ve been affected by abuse.

D In Wales

Bevan Foundation, Shelter Cymru and Llamau helped improve a Housing Bill to give people more and better chances to find a home.

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In Newport

Amazing Grace Spaces has developed and sold sleeping pods to provide short-term, self-contained emergency accommodation.

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In Leicester

The Bridge took on 4 properties to house 17 people experiencing homelessness.

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In Milton Keynes

85% of nightshelter guests at unityMK moved on to positive accommodation.

H

In Fulham

78% of prison leavers supported by People Arise Now maintained stable housing for 6+ months after their release.

I

In Medway

One Big Family moved to a larger property, doubling the number of homeless men they house from 9 to 18.

J

In Great Yarmouth

People who’ve experienced homelessness led the way, pulling together a plan to take on housing that’s owned by the community and prevents homelessness for others.

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19

26

people were supported into safe homes.

19

people got help with finding a job, including one who’s now a teaching assistant.

72%

of people they helped with budgeting felt they were more able to manage their money.

Satvinder’s story: “It’s like starting again”

“And it’s such a good place to be. We’ve got CBT, art, Creative Café, pool competitions, the internet, fantastic food. And it’s safe.”

“I was on the streets for 8 months and when you’re on the streets, you lose everything. Your respect, your hygiene, you forget things. I lost my birth certificate. I lost my passport. I got beaten up 3 times. I got robbed 12 times.”

Branches helped Satvinder with accessing benefits and health services – even realising that he needed hearing aids, when no one else had pointed it out – and ultimately helped him move into his own flat.

Then, as winter closed in, Satvinder was referred to Branches, a homelessness charity in Waltham Forest which helps rough sleepers and homeless adults rebuild their lives. 80% of people referred to Branches have mental health needs and 50% have some dependency on drugs and alcohol. Lloyds Bank Foundation has invested £148,000 in Branches since 2019, as well as supporting expansion from a single hostel by taking on new property so more people can get help.

“It’s like starting again. That’s the chance Branches gives you. They put everything together for you, so you can build a new life.”

Satvinder is one of 80 people supported by Branches last year.

“My first time walking in at Branches – I went from sleeping behind a shop to what felt like being in a Travelodge. A clean bed, a decent shower. All yours. Then the help started.

“You can talk to anyone here – the receptionist, your key worker, the maintenance person. They’re all there for you, always there for you.

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Photo credit: Tracey Brabin and Selima Bahadur of EYST Team at the Civil Society Summit

Across sectors

Using our links with national governments, we:

Connecting

Building bridges

Partnership is mission-critical to us. Our impact in 2025 was only possible because we worked hand in hand with others including by bringing people together.

• Held a historic gathering between the UK government and civil society, attended by 14 Ministers and Metro Mayors and over 100 civil society leaders. Promising “a brand new way of working with Civil Society”, Prime Minister Keir Starmer launched the Civil Society Covenant to unlock a new partnership with the sector

• Funded AchieveGood to bring together No 10 officials and senior civil servants from 6 departments with community experts. These workshops have actively shaped the government’s neighbourhoods policy

• With 150 people from 100 organisations – including decisionmakers and commissioners across 8 councils, the NHS, and public bodies – we helped generate 40 commitments to action on funding in Wales. This included co-created commissioning guides in Pembrokeshire, and a detailed plan for change and collaboration in South Wales

• Connected partners from communities with 36 MPs and Peers in Westminster and 15 senior policymakers in the Senedd, bringing attention to the crucial role of small community organisations in improving financial resilience.

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“We left the conversation with a better understanding of what providers needed; more time, more space to collaborate, and more clarity on what’s coming next. That’s what we’re now building into our process.”

Debbie Roberts, Commissioner, Wrexham Council

“A powerful step forward in building stronger partnerships between government, civil society, and the impact economy.”

“I’ve been in the sector 40 years and never seen a government turn out to engage with us like this.”

Amar Abbas, CEO Youth Action, attendee at the Civil Society Summit

Attendee at the Civil Society Summit

A “lift off” moment for The Lantern Trust in Weymouth

The Lantern Trust does brilliant work helping people in Weymouth be in a good place personally and have a good place to live. But like many organisations that help people through crises, staff were constantly responding to urgent needs, with little space to plan for the future.

• Access to peer support from other leaders.

The investment helped The Lantern Trust:

• Grow from 5 employees to 33

• Broaden its funding base, so council funds no longer made up 80% of its income

We provided what the CEO Michael called an “armada of strategic development support”, including:

• Shift from juggling crises to preventing problems

• Strategic planning consultancy to develop a five-year plan

• Embed the systems needed for resilience.

• Leadership development for the CEO and chair of trustees

“Lloyds Bank Foundation’s support catalysed real action from government in how they partner with philanthropy, social investment, social enterprise, business and wider civil society in neighbourhood renewal – and that’s now translating into ongoing co-design work with government. Without their backing, none of this would have happened.”

Dominic Llewellyn, CEO AchieveGood

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In deep local partnerships

Starting a movement, one ministerial meeting at a time with Enfield’s Cook and Chill project

“The Cook and Chill project were invited (with the help of Lloyds Bank Foundation), to step into rooms where decisions are made and where our voices have been missing for far too long.

He responded bluntly:

“I am not surprised.”

For once, we heard honesty from the top: the institutions surrounding children in care behave less like parents and more like corporations; protecting themselves before protecting the child.

Around the table sat care leavers from Enfield, representing countless young people whose voices could not be present. Across from us sat Josh MacAlister, Minister for Children.

If we want real reform, we must start with something every child deserves: love. The minister said he wants to see more lifelong relationships, stronger support to keep families together, and better provisions for kinship carers.

Jayden, George and a third care leaver spoke with courage, honesty and unfiltered truth. Their stories laid bare a system that repeatedly fails children. At each stage, young people are left to navigate life without clarity, guidance or genuine support. And too often, the results are devastating.

These are important steps, but love cannot exist without accountability.

One meeting cannot change the system, but it can start a movement. And we will keep knocking on doors until those doors stay open.”

After my colleagues spoke, I asked the minister:

“How do you feel after listening to these experiences?”

Jim Wasswa, Change Champion, Enfield LocalMotion

Because community-led organisations are closest to the change that needs to happen for everyone to be in a good place, in 2025 we invested £1.2m in our Local Collaborations funding programme, and brought 52 new organisations into cross-sector partnerships to drive change locally.

That investment is starting to show real impact. By building bridges across sectors, putting the voices of those furthest from a good place at the heart of policy, and focusing on preventing problems, these partnerships are driving change so that:

• In line with our ‘Everyone in a Good Place’ objective, more people in Wrexham and Middlesbrough can be in a good place personally. The efforts of partnerships there have resulted in commitments from MPs, the DWP and local councillors to work with community organisations to tackle poverty, and have won invites from local Public Health, Domestic Violence and Social Services officers to inform policy for people with the very lowest incomes.

“This event marked the beginning of efforts to ensure the voices of those with lived experience of poverty are included in our area’s future policies and strategies.”

Wrexham Local Collaboration

• More people in Manchester and Liverpool can be in a home that’s a good place to live. These networks have directly influenced the Mayor of Manchester’s major commission on housing, and changed structures so that families at high risk of homelessness can stay in their homes peacefully.

• More people in the Wirral and Manchester can be in a community that’s a good place to belong. Together, they’ve helped disabled people and GPs work across divides to trial new ways for disabled people to access care, and upped local people’s understanding that residents in asylum hotels want to work and contribute to society.

“We anticipated resistance from GPs. However, GPs mostly have welcomed the opportunity to explore other options.”

Wirral Local Collaboration

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Opening doors

Through our joint efforts with Lloyds Banking Group, we’ve helped their colleagues make a difference, multiplying the money they raise for communities and connecting them to the community organisations where they can lend a hand.

Where we’ve combined forces with Lloyds Banking Group over deeply shared goals, brilliant things have happened. In 2025:

• More leaders in communities and leaders in the Group have tested ideas, solved problems, and improved lives together than ever before. That’s because we grew our Skills Based Volunteering Programme by 40%, adding 340 new volunteers to help a total of 131 community organisations build long-term resilience.

• 29 charities received a share of £2.6m to help Deaf and Disabled people with their financial resilience. That’s because the Group recognised the vital role played by the local organisations people trust to provide the help that prevents them reaching crisis, and donated an additional £1.4m to us as part of our 40th anniversary.

• Lloyds Banking Group colleagues’ fundraising and volunteering efforts received a £1.9m boost that reached 1,419 charities across 84% of parliamentary constituencies in England and Wales. That’s because our Matched Giving scheme -which harnesses the powerful incentive of match funding to drive giving – increased uptake again in 2025.

The purpose of our partnership with Lloyds Banking Group is to ensure more people in England and Wales are in a good place. And it does.

Community organisations rated their experience with our volunteer Skills Exchange scheme 4.75/5

89%

of community organisations attending our Charity Response Forums said the volunteers met their needs.

And our partnership also helped Group colleagues give back, learn new skills, and become more productive and engaged at work.

83%

of Skills Exchange volunteers said their skills improved.

89%

of Skills Exchange volunteers said they were likely to volunteer again.

9 volunteers, 100s of charities upskilled

EVA (Enfield Voluntary Action) works to strengthen hundreds of voluntary and community organisations across the town, helping local people in countless ways. Like many organisations, they knew AI held huge potential, but that there was also a lot of concern about the best ways to harness it safely.

The pilot volunteer project helped EVA:

• Give AI confidence to 100s of local charities

• Increase their capacity to use AI safely and responsibly

• Apply for funding to support AI initiatives and training for community groups.

• 9 Lloyds Banking Group colleagues across different parts of the business came together to help EVA with:

Lloyds Banking Group has learned from this partnership, and have now rolled out AI webinars specially tailored to support even more charities embrace the technology.

• Developing an AI strategy and policy

• Running education sessions for EVA’s member organisations

• Easy to understand learning resources.

“Volunteering helped someone else, but it also inspired me to be more compassionate, patient and curious to learn from the communities that I serve every day at work.”

“I’d really encourage people to volunteer with the Foundation because your problem solving and coaching skills will grow exponentially.”

Bhavini Patel,

Sami Awal,

Community Bank, who volunteered with a charity in Rochdale

AI specialist, who volunteered at multiple Charity Response Forums

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Matched Giving: A £1.9m boost in 2025

Who Matched Giving funds supported

1.6m 4,300

to match fundraising, and £265,000 to match over 2,600 hours of volunteering

colleagues engaged in Matched Giving

£320,000

boost to Crisis, the Group’s headline charity partner

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Homelessness Cancer Charities
24% 10%
Other
42%
Scouts/Guides
4%
School/PTA Hospices
9% 6%
Hospital
Charities
4%
How colleagues
fundraised
Sponsored 38%
walk or run
Raffle 24%
Other 11%
Sales 6%
Community 6%
events
Ticketed
6%
events
Cake/ 4%
bake sales
Fairs/ 3%
stalls
Sports 2%
challenges
Auctions 1%
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How our partners helped more people say “I’m in a community that’s a good place to belong to.”

• Throughout 2025, we backed people and communities to drive change that meant more people could say “I’m in a community that’s a good place to belong to” – with a focus on bridging divides. Our partners helped people with:

• Removing the barriers to belonging – re-designing the systems that keep people excluded, and providing the practical support that means people can take part in community life.

• Contribution and voice – empowering people to lead and be listened to, shaping how communities work.

• Rituals that build belonging – bringing people from different backgrounds together, through meals, walks, classes, gardens, crafts and exercise.

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A
B
C
D
E F
G
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A

In Southport

After the riots in Southport, we funded efforts to bring the community together around a positive manifesto and vision for the town.

B

In Telford

As part of a partnership, our Local Lead in Telford and Wrekin helped to secure £400,000 from Sports England to get secluded young people and adults get active.

C

In Leicester

One Roof Leicester created friendships between homeless residents and volunteers and, through community-supported ‘forever homes’ helped people build bonds that feel like neighbours and family.

D

In Rugby

Futures Unlocked helped former prisoners reconnect socially with their communities.

E

In Cardiff

Women Connect First’s cultural learning activities helped create bonds across cultures.

F In Bristol

Changing Tunes used the power of music to help prison residents feel connected as part of a positive community.

G

In Archway

KMEWO supported 85 Afghan families to find belonging in their new neighbourhood, and 90% felt more included and integrated.

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33

247

women were helped to find safe accommodation.

207

women benefited from their Women’s Development and Employment programme, including one who started volunteering to teach other women English as a second language.

90%

Sara’s story: “Because of KMEWO, I am settled”

KMEWO initially provided Sara with therapy that was sensitive to both the trauma she’d been through and her culture. By offering empathy and human interaction, Sara began to heal. Long-term counselling followed, to help her rebuild her identity and process her painful history.

When Sara arrived in the UK, she dreamed of having a family and working with disabled children. Those plans were derailed by someone who took advantage of her trust, by infertility, and by two abusive marriages.

“I was isolated, alone and living in a hotel, disconnected from my community. I had negative thoughts during this time.”

After completing her sessions, Sara joined a Women’s Group, where she formed meaningful friendships and gained a sense of belonging. Sara also started a full-time job and, after 12 years, reunited with her family, marking a significant improvement in her mental health and overall well-being.

Then Sara* found the Kurdish and Middle Eastern Women’s Organisation (KMEWO), a charity run by and for black and minoritised women in London who are survivors of domestic abuse and harmful practices. Fewer than half of the women coming to KMEWO feel able to report their abuse to police, 20% have disabilities, and 49% don’t speak English when they first access help. Lloyds Bank Foundation backed KMEWO with £104,750 in grant funding between 2020 and 2024, as well as training for their operations manager, a review of their structure and financial systems to help them have more resilience and impact.

“If I hadn’t contacted KMEWO, I don’t think I would be alive.”

Sara is one of 664 women supported by KMEWO during the second year of our last grant to them.

*Sara’s name has been changed

“Because of KMEWO, I am settled… I have completed my studies, am working full time, and have secure accommodation.”

of women left abusive relationships. Photo credit: EVA 01 02 03 04 05 06

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35

Photo credit: Daisy Inclusive

Give Impact

Every year, we will grow the giving of time and money.

Power

By 2030, we will have impact in every parliamentary constituency.

Looking Ahead

We could only ever capture a fraction of the impact we saw across England and Wales in 2025 in this report. Every day, the people and communities we back bring their ambition, their energy and their determination to make their neighbours’ lives better. To match that ambition, energy and determination, in 2026, we’re stepping up to scale our impact.

As set out in our new strategy In a Good Place, in 2026 you’ll see us beginning the work to achieve three new enabling goals.

By 2035, we will power community-led change in 100 local places.

By doing so, we’ll be working towards our bold ambition to ensure that everyone in England and Wales is in a good place personally, in a home that’s a good place to live, and in a community that’s a good place to belong.

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How we spend our money

Everything we spend aligns with our mission: to partner with small and local charities helping people overcome complex social issues and rebuild their lives. We aim to make grant funding unrestricted wherever possible. The principal support to charities was provided through the five grant programmes:

• Specialist programme – 83 grants totalling £6.2m to fund support to charities helping people facing complex social issues (2024: £6.75m of grants to 90 charities).

• Racial equity – 41 grants totalling £3.1m to fund Black, Asian and minority ethnic communities (2024 £3.3m of grants to 43 charities) plus £1m to a joint fund with Trust for London for charities in London.

• D/deaf and disabled people - 41 grants totalling £3.1m to fund for organisations led by and working for D/deaf and disabled people (2024: £3.3m of grants to 43 charities).

• Local Collaboration programme – the second programme awarded £1.2m to 12 charities collaborating together in the areas of Homelessness, Asylum Seekers and Refugees and Social Security (2024 – there were no awards under this programme with £1.6m was awarded in 2023 to 16 charities).

Financial Review

• National Influencing programme – 21 grants totalling £1.2m to fund organisations working nationally to influence policy and promote small charities (2024: £0.6m of grants to 17 charities).

Overview

In this section, our Trustees outline our principal funding source in the year ended 31 December 2025 and how we used these resources to support our key objectives. Full details can be found in the financial statements that follow this Trustees’ Report (page 44 onwards).

Where our money comes from

The Foundation is an independent charity principally funded by Lloyds Banking Group, receiving a share of the Group’s profit under a Deed of Covenant (see note 16b for further details of our connection with this party).

The Foundation does not raise funds from the public.

In 2025 we received £24.3m from Lloyds Banking Group (LBG) under the Covenant (2024: £25.4m) and an additional £1.4m towards a special grant programme for the 40th anniversary (In 2024 the Foundation received an additional £450k from LBG to help charities respond to the autumn riots).

In 2025 we received funding of £2.1m (2024 £nil) from the National Lottery Community Fund to develop support for their grantees.

• Financial resilience programme – a special grant programme of £2.6m to 33 charities for 2025 (2024: nil).

Other key funding included;

• £1.8m of organisational development support for charities (2024: £1.8m).

• A new programme – Investing in the Power of Civil Society which provides organisational development to charities in receipt of a grant from the National Lottery Community Fund which has awarded £1.4m of funding to development partners.

• £1.9m (2024: £1.9m) was paid to charities across the country under the Matched Giving scheme, where the Foundation matches the fundraising efforts of colleagues at Lloyds Banking Group, including £320k as part of LBG’s partnership with Crisis (2024: £373k).

Total grant and donation expenditure was £23.7m (2024: £20.2m). Total charitable expenditure was £30.1m (2024 £24.7m) – the increase was enabled by the higher level of funding from LBG and a grant from the National Lottery Community Fund.

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Expenditure 2025

Long term funding £18.6 m Direct costs of charitable activity £4.6 m Development £3.9 m Central support costs £1.9 m Influencing, Policy and Practice £1.2 m

Investments

The overarching investment objective is to maintain sufficient liquidity of funds and their overall value in order to finance the planned deficits arising from the excess of expenditure over income which is expected in the short-term under the current strategy. This objective has been met by applying two levels of investment strategy;

• bank deposits and short-term funds for funds required within five years,

• long-term funds with a time horizon beyond five years.

The overall result for the year was a deficit on unrestricted funds of £1.2m (2024: surplus £3.0m) before investment gains of £1.6m (2024: £1.2m). The deficit is funded by the reserves of the charity which are higher than the target level and are being used to fund increased support for charities this year and the next two years.

Financial investments of the Foundation were valued at £17.7m at 31 December 2025 (2024: £16.0m) with the majority invested in the Cazenove Sustainable Multi-Asset Fund.

The disposition of funds at 31 December was as follows;

----- Start of picture text -----
Asset value 2025 2024
£’m £’m
HSBC Institutional Liquidity Fund 1.6 1.6
Cazenove Sustainable Multi-Asset Fund 16.1 14.4
Total 17.7 16.0
----- End of picture text -----

The Foundation did not add any additional funds or make any divestments - the increase resulted from an improvement in investment values.

The Cazenove Sustainable Multi-Asset Fund has a long-term (5+ years) horizon with the aim of providing a good flow of income and protection. This pooled managed Fund seeks a combined income and capital return over the long-term of 4.5% above inflation. The fund is predominantly invested in listed assets and the valuation is provided by the fund manager based on the fair value of each asset.

The Trustees’ policy is to avoid investment in companies which are materially engaged in certain sectors including tobacco, alcohol, gambling and adult entertainment. This Fund is a global multi-asset portfolio with an integrated socially responsible investment policy and makes investment decisions consistent with the aims of the Paris Accord on climate change.

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Lloyds Bank Foundation Annual Report

These investments are regarded as Level 2 investments in accordance with Section 34 of FRS 102. The investments are valued at fair value at the valuations provided by the investment manager.

The Cazenove Fund is recognised at its market value of £16.1m (2024: £14.4m).

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Investments by asset 2025 2024
class at 31 December
Long term portfolio £’m £’m
Equities 12.0 10.7
Bonds 1.5 1.5
Property 0.6 0.6
Alternative investments 1.6 1.2
Cash 0.5 0.4
Total 16.1 14.4
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Financial risk management

The risks associated with the Foundation’s investments are monitored by its Audit, Investment and Risk Committee and managed on a day-to-day basis by its investment managers. The key risks which the Trustees believe are relevant to the Foundation’s investments are:

Market risk:

Exposure

The portfolio is well diversified with holdings in a wide range of asset classes. 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.

Sensitivity

The largest market risk is a fall in the value of equity markets. Based on the position at 31 December 2025, in the event that there was a general 10% fall in equity the value of investments due to market fluctuations there would be a reduction in net income of £1.62m (2024: £1.1m).

Currency

After performing strongly in 2023 and 2024, the investments generated further positive returns in 2025. The performance in the year was as follows;

	Return 2025	Benchmark 2025	Return 2024	Benchmark 2024
	%	%	%	%
Cazenove Multi Asset Fund	11.3%	8.2%	8.5%	6.6%

The Multi-Asset fund is denominated in GBP. The currency exposure of the Multi-Asset Fund at 31 December was as follows;

----- Start of picture text -----
2025 2024
Currency exposure Currency exposure
% %
Sterling 26.7 27.8
US Dollar 24.3 23.5
Euro 4.1 5.0
Other 44.9 43.8
Total 100.0 100.0
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Lloyds Bank Foundation Annual Report

Credit risk:

The Foundation’s invests into the Pooled Investment vehicles. There is a direct exposure to credit risk in relation to the Pooled Investment vehicles and indirect risk in relation to the underlying investments held within the Pooled Investment vehicles. Term deposits of £23.0 million at 31 December 2025 (2024: £19.5m) were invested with Lloyds Banking Group; the Foundation policy is that there is a limit of £5 million for deposits with any bank other than Lloyds Banking Group.

Liquidity risk:

The Foundation’s long-term investments are invested in the Cazenove Sustainable Multi-Asset Fund which has weekly dealing which would allow the Foundation to realise cash if this were required.

Risk

How we manage risk

Trustees are tasked with ensuring that the framework of governance, risk management and control supports the appropriate management of risk. Within this framework, the Board judge whether its agenda is focussing assurance on the issues that are the most significant in relation to achieving the Foundation’s objectives and whether best use is being made of resources, targeting those areas of greatest risk.

The Audit, Investment and Risk Committee plays a crucial role in supporting the Board of Trustees to meet these assurance obligations.

Principal risk around a single source of income

Reserves

Currently the balance of total reserves held by the Foundation stands at £26.4m (2024: £25.4m) of which the free reserves are £24.8m (2024: £23.7m).

The Foundation holds reserves for both operational and strategic purposes considering the main risks to the organisation.

The Trustees recognise that there is a significant risk around the Foundation having one primary income source, being Lloyds Banking Group. As such the reserves policy requires 12 months total expenditure less the minimum annual payment under the Lloyds Banking Group covenant with a tolerance level of 5% below the target before action is required. At 31 December 2025 this represented a level of £14.2m (2024: £10.2m). At £25.4m at 31 December 2025 (2024: £23.7m), the level of reserves stands well in excess of this requirement. The higher level of reserves will enable the Foundation to make a higher level of grant awards in future years than would be possible from its annual income from Lloyds Banking Group. The Foundation plans to utilise the reserves over the next two years such that the target and actual reserves will be aligned towards the end of 2027.

Grants (including multi-year grants) are recognised in the financial statements as liabilities when they are approved. As a result, the balance sheet includes creditors and provisions for future years commitments (see note 1 for the full grant accounting policy).

The Trustees recognise that there is a significant risk associated with the Foundation being principally funded from one source, namely Lloyds Banking Group. The current economic uncertainty may impact on the profitability of the Group. The Trustees are satisfied that this risk is suitably mitigated as follows:

Short term risk associated with a sudden drop off of Lloyds Banking Group profitability is managed through both a minimum income guarantee from LBG to the Foundation and through the averaging of profits over three years in the calculation of the award.

In addition, the Foundation’s reserves and the Reserves Policy provide further mitigation.

An Appropriate and Proportionate Risk Assurance Framework

Under the Foundation’s Risk Assurance Framework, the Trustees have defined the key strategic risks.

Serious incident report

During the year the Foundation received reports about safeguarding concerns at a charity it had recently awarded a grant to. The matter was reported to the Charity Commission and the grant award was withdrawn.

The Foundation also has designated and restricted funds. There are designated funds to provide for awards expected to be made in 2026 from 2025 programmes and in respect of funds invested in Fixed Assets.

Restricted Funds represented funds received from partners for a joint project.

Full details of Designated and Restricted Funds are shown in note 14.

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----- Start of picture text -----
Category Risk How we manage it
Fraud (external): a grantee or
Due diligence at grant award; progress reporting
partner misuses Foundation
throughout the grant lifecycle
funds
Fraud (internal): a member of
Financial controls reviewed regularly by Trustees
staff misappropriates funds
Values-based recruitment; code of conduct; staff
Staff act against our values
learning and development programme
Reputation
Clear grant conditions; established process
A grantee’s conduct attracts
for receiving and responding to third-party
complaints or public criticism
complaints; escalation to Trustees where serious
Lloyds Banking Group’s Regular dialogue with LBG; independence
actions or reputation affect of Foundation clearly articulated in public
the Foundation by association communications
Risk register reviewed quarterly by SLT and
Failure to identify or respond
six-monthly by Trustees; named risk owners
to an emerging risk in time
throughout
Decline in income from Nine-year notice period and minimum income
Lloyds Banking Group guarantee in covenant agreement
Active cashflow management; reserves
Finance Cash flow disruption
maintained at policy level
Investment Diversified portfolio; quarterly reviews; Trustees
underperformance approve investment strategy
Cyber Essentials certification; staff training;
Cyber attack or data breach
incident response procedures
Annual Board effectiveness review; compliance
Governance failure
with Charity Governance Code
Compliance
Health and Safety management system; specialist
Injury to staff or visitors
advisor retained
General compliance failure Controls register reviewed regularly; specialist
(legal or regulatory) legal, financial, and IT advisors
We do not deliver the Portfolio management approach with monthly
strategy or achieve our oversight; progress tracked against strategy
intended outcomes through the Good Place Index
Impact
Political division or instability Relationships maintained across all major parties;
affects our ability to operate crisis communications plan in place
----- End of picture text -----

The key strategic risks together with the current controls and methods of management and actions to improve management or mitigate risks are documented in a strategic risk summary. In order to actively manage strategic risk, the summary is used by the Senior Leadership Team and the Audit, Investment and Risk Committee meetings to:

• frame conversation around strategic risk

• facilitate active management of that risk against an assumed risk appetite

• inform decisions on future activity

• The Committee consider one area in detail at each meeting and report back to the Board of Trustees.

In addition the full Risk Register is considered by AIRC bi-annually and by the Board at least once a year.

Fundraising Activities:

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 undertake widespread fundraising from the general public and does not employ professional fundraisers. The Foundation is therefore not bound by any regulatory scheme and does not consider it necessary to comply with any voluntary code of practice.

Business Continuity:

The Foundation has been able to effectively respond to the shocks that have occurred in recent years. The financial strength of Lloyds Banking Group provides confidence on the continuing receipt of income underpinned by a minimum of £14.4m regardless of the actual profits of LBG.

Going 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 2025 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 £14.4m 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 at least until June 2027.

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Future activities

The Foundation will continue to provide grant funding, developmental support and seek to influence policy to help small and local charities thrive in their local communities.

The Foundation’s reserves could be affected by a fall in the value of its investments. The Foundation’s practice is to keep a buffer between the amount the reserves over the minimum level so that a fall of 10% in the value of the investments would have no impact on grant making in the next five years.

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 on investment funds to enhance our grant giving capability. The Trustees are confident that they are able to continue their operations and grant funding activities as planned for the remainder of the year, throughout 2027 and beyond.

The Lloyds Bank Foundation for England & Wales is incorporated as a company limited by guarantee. It is regulated by its Memorandum and Articles of Association dated 13 December 1985.

The principal governing body of the Foundation is the Board of Trustees, whose names are listed on page 84. The Board is responsible for the strategic direction of the Foundation and normally meets quarterly together with the Executive to review progress and to ensure that the Foundation is on track to meet its objectives.

Board of Trustees

The Board has delegated specific decisions to four permanent Committees. The members of the Committees are drawn from the Board of Trustees.

Audit, Investment and Risk Committee:

The main responsibilities of the Audit, Investment and Risk Committee are to provide assurance to the Foundation on the effectiveness of its governance, internal control, risk management framework and investment and reserves strategies.

In addition, the Committee reviews the annual report and financial statements and approves the accounting policies followed to satisfy themselves that the financial statements give a true and fair view of the Foundation’s affairs.

The Committee meets quarterly.

Governance

Constitution

The Articles set out that the Foundation was established with widely drawn objects to do anything which is a charitable purpose. The Foundation has prioritised its objects further as it has evolved, choosing to focus strategically on partnering with small and local charities helping people overcome complex social issues and rebuild their lives.

The Trustees confirm that they have complied with their duty to have due regard to the Charity Commission’s public benefit guidance, under Section 17 of the Charities Act 2011, when reviewing the Foundation’s aims and objectives and in planning and setting the strategy. Further details on our strategy for the future can be found on page 37.

The Foundation applies and follows the Charity Governance Code (for large charities).

Organisational structure

The Board of Trustees has collective responsibility for everything that the Foundation does – including the legal responsibility to ensure that the Foundation is controlled and properly managed.

The Board delegates responsibility for operational management to the Chief Executive, who leads the Senior Leadership Team which in turn supports the Management Team. Together these teams develop the organisation’s plans, policies and processes, following the Board’s advice and approval.

Nominations Committee:

The purpose of the Nominations Committee is to support the recruitment and appointment of Trustees, giving due consideration to the balance of skills, interests and experience on the Board of Trustees.

The Committee makes recommendations to Lloyds Banking Group, who formally make the appointments at their own Nominations Committee (as required under the governing document of the Foundation - its Articles of Association).

The Committee meets as required.

People & Culture Committee:

The role of the People & Culture Committee is to oversee the remuneration policies for the Foundation, with particular focus on the remuneration of the Senior Leadership Team.

The Committee meets bi-annually.

Grant Panel:

The main responsibility of Grant Panels is to review and approve grant applications against the relevant programme’s aims and objectives. The Panels consider recommendations taking into account factors including outcomes, risk factors, geographical spread and budgetary considerations.

The various Panels meet regularly throughout the year as necessary.

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Our people

Our staff

Our passionate and dedicated Foundation staff make it possible to have lifechanging effects on the lives of people facing complex social issues, through small and local charities. To ensure that we employ and develop talented staff and keep them accountable in their work, all staff take part in performance feedback and appraisal throughout the year.

Proposed pay increases for all staff including the Senior Leadership Team are presented to our Remuneration Committee for approval. Proposals take into consideration the market as assessed by Croner, an external salary benchmark provider specialising in the charity sector.

The Foundation does not offer performance related bonuses.

Our Trustees

The Foundation is passionate about recruiting a diverse Board of Trustees with a wide range of skills and interests. When recruiting new Trustees the Nomination Committee helps identify areas that could be better represented, and we recruit publicly, usually through national adverts, to strengthen the Board’s skillset.

Newly appointed Trustees follow an induction programme including:

• an induction pack which includes the main governing documents, operational framework, financial position and future plans and objectives, signposts to various Charity Commission guidance

• a series of short training sessions with the Senior Leadership Team to familiarise themselves with the Foundation

• mentoring by existing Trustees

In addition, a formal training session on the legal duties and responsibilities of trustees is held biennially as a refresher for all Trustees.

Trustees typically serve a three-year term, although this may be extended for a maximum of a further three years. Trustees are fully engaged with the work of the Foundation and get to know our grantees as well as strategic priorities through regularly visiting our charities and learning about the organisation from the Chair and Senior Leadership Team.

More details about our Trustees can be found on page 84.

Statement of Trustees’ Responsibilities

The Trustees (who are also directors of Lloyds Bank Foundation for England and Wales for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

The law applicable to charities requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources of the charitable company for that period including the income and expenditure. In preparing the financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed,

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included in the Charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In so far as the Trustees are aware:

• (a) there is no relevant audit information of which the auditors are unaware; and (b) the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Independent auditors

A resolution to re-appoint Deloitte LLP as auditors to the Foundation will be proposed at the annual general meeting. The Trustees’ Report, including the Strategic Report was approved by the Board of Trustees on 22 June 2026 and signed on their behalf by:

Enver Solomon OBE, Acting Chair of Trustees

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Independent auditors’ report to the members of Lloyds Bank Foundation for England & Wales

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of Lloyds Bank Foundation for England & Wales (the ‘charitable company’):

• give a true and fair view of the state of the charitable company’s affairs as at 31 December 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, which comprise:

• the statement of financial activities

• the balance sheet

• the statement of cash flows; and

• the related notes 1 to 17.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report.

We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Reporting on other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the Directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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Auditors responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the charitable company’s industry and its control environment, and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and Trustees about their own identification and assessment of the risks of irregularities including those that are specific to the charitable company’s business sector.

We obtained an understanding of the legal and regulatory framework that the charitable company operates in, and identified the key laws and regulations that:

• had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Charities Act and UK Companies Act; and

• did not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company’s ability to operate or to avoid a material penalty. These included the Charity Commission for England and Wales (Charity Commission) regulations.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following area, and our specific procedures performed to address it are described below:

grant expenditure. We have addressed this risk by selecting a sample of grants recognised in the year and reviewing the grant agreements, Board minutes, cash payments and related information to understand the purpose of the grant, any conditions present and ascertain the correct level of expenditure and related liability to 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 tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential 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 to respond to the risks identified included the following:

• reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

• reading minutes of meetings of those charged with governance and reviewing any correspondence with the Charity Commission.

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees’ report, which includes the Directors’ report prepared for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Directors’ report included within the Trustees’ report has been prepared in accordance with applicable legal requirements.

• 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.

• we identified a risk due to fraud related application of grant expenditure in line with charitable objectives, and the correct recognition of liabilities in respect of

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Lloyds Bank Foundation Annual 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:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

Use of this 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.

Helen Perkins CA (Senior Statutory Auditor)

for and on behalf of Deloitte LLP Statutory Auditor Reading, United Kingdom

Financial Statements

Statement of Financial Activities

(incorporating an Income and Expenditure account)

----- Start of picture text -----
Year ended 31
December 2025
£’000 £’000 £’000 £’000 £’000 £’000
Income from:
-
Donations and legacies 2 25,764 2,097 27,861 25,938 25,938
- -
Investment income 9 1,610 1,610 1,702 1,702
Other income 3 17 107 124 14 102 116
Total income 27,391 2,204 29,595 27,654 102 27,756
Expenditure on:
Charitable activities 4a (28,595) (1,540) (30,135) (24,642) (103) (24,745)
- -
Investment fees (20) (20) (18) (18)
Total expenditure (28,615) (1,540) (30,155) (24,660) (103) (24,763)
Net (expenditure)/in-
come before gain/(loss) (1,224) 664 (560) 2,994 (1) 2,993
on investments
- -
Net gain on investments 9 1,650 1,650 1,212 1,212
Net income/ (expendi-
426 664 1,090 4,206 (1) 4,205
ture)
Transfers between
funds - - - - - -
Net movement in funds 426 664 1,090 4,206 (1) 4,205
Reconciliation of funds:
Total funds brought
14 25,354 (2) 25,352 21,148 (1) 21,147
forward
Total funds carried
14 25,780 662 26,442 25,354 (2) 25,352
forward
Note Restricted 2025 Restricted 2024
Unrestricted Total Funds Unrestricted Total Funds
----- End of picture text -----

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 61 to 83 form part of these financial statements.

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Lloyds Bank Foundation Annual Report

Balance sheet

As at 31 December 2025

----- Start of picture text -----
Note 2025 2024
Fixed assets: £’000 £’000
Tangible assets 8 52 62
Investments 9 17,663 15,965
Total fixed assets 17,715 16,027
Current assets:
Debtors 10 1,740 921
Investments 9 28,001 24,953
Cash at bank and in hand 695 1,625
Total current assets 30,436 27,499
Creditors: Amounts falling due within one year 11 (13,466) (11,567)
Net current assets 16,970 15,932
Total assets less current liabilities 34,685 31,960
Creditors: Amounts falling due after more than
12 (7,093) (5,452)
one year
Provision for liabilities and charges 13 (1,150) (1,155)
Total net assets 26,442 25,352
The funds of the charity
Unrestricted funds 14
General fund 24,781 23,705
Designated funds 999 1,649
Total unrestricted funds 25,780 25,354
Restricted funds 14 662 (2)
Total charity funds 26,442 25,352
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Statement of cash flows

Year ended 31 December 2025

----- Start of picture text -----
Notes 2025 2024
Cash flows used in operating activities £’000 £’000
Net cash generated in operating activities (A) 578 2,666
Cash flows from investing activities:
Dividends and interest from investments 1,610 1,703
Purchase of tangible assets (2) (2)
-
Purchase of investments (1,500)
-
Proceeds from sale of investments 1,500
Movements in invested cash (68) (40)
Movements on term deposits (3,048) (7,353)
Net cash from investing activities (1,508) (5,692)
Change in cash and cash
(930) (3,026)
equivalents in the reporting year
Cash and cash equivalents at
1,625 4,651
the beginning of the reporting year
Cash and cash equivalents
(B) 695 1,625
at the end of the reporting year
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The financial statements of Lloyds Bank Foundation for England & Wales registered number 1971242 including the notes on pages 61 to 83 were approved and authorised for issue by the Trustees on 22 June 2026 and signed on their behalf by: Enver Solomon OBE, Acting Chair of Trustees

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(A) Reconciliation of net expenditure to net cash flows from operating activities

----- Start of picture text -----
2025 2024
£’000 £’000
Net income for the
1,090 4,206
reporting year
Adjustments for:
Depreciation charges 12 29
Income from investments
(1,610) (1,703)
(Increase) in debtors
(819) (569)
Increase in creditors
3,540 1,987
(Decrease) in provisions
(5) (89)
(Gain) on investments
(1,650) (1,212)
Investment management fees 20 18
Net cash generated by
578 2,666
operating activities
----- End of picture text -----

(B) Analysis of cash and cash equivalents

----- Start of picture text -----
2025 2024
£’000 £’000
Cash in hand 695 1,625
Total cash and
695 1,625
cash equivalents
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The Notes on pages 61 to 83 form part of these financial statements.

Notes to the Financial Statements

1. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by a revaluation of investments, and in accordance with applicable Accounting Standards in the United Kingdom, including the Charities “Statement of Recommended Practice” applicable to charities preparing their accounts in accordance with SORP FRS 102 (‘the SORP’s second edition – October 2019) and in accordance with the Companies Act 2006 and Charities Act 2011, using consistently applied accounting policies and is incorporated in England and Wales as a company limited by guarantee not having a share capital. The current Trustees are also 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 83.

The new Charities SORP (SORP 2026) was published on 31 October 2025 and comes into effect for financial periods on or after 1 January 2026. The key changes are amendments to lease accounting, revenue recognition and social investments. None of these changes are expected to have a material impact on the Foundation’s financial statements.

Lloyds Bank Foundation for England & Wales meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value with investments at fair market value unless otherwise stated in the relevant accounting policy notes.

Fund accounting

Restricted and designated funds are separately disclosed as set out in note 15. The different funds held are defined below:

Unrestricted funds:

The Foundation’s unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation.

Designated funds:

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

Restricted funds:

These funds are subject to specific restrictions imposed by the donor.

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Lloyds Bank Foundation Annual Report

Investments

Investments are included in the Balance Sheet at fair value which is their closing market bid price on the current or previous trading day. Details of the nature of the investment assets, valuation methods and risk management are included in the Trustees’ report.

Realised gains 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.

Current asset investments have a maturity date or expected disposal date of more than 90 days and less than one year and are not held for long-term investment purposes.

Cash and cash equivalents

Cash and cash equivalents include cash and short-term highly liquid investments with a maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Interest income is recognised on a receivable basis which reflects the effective interest method.

Expenditure

All expenditure is included on an accruals basis in the period in which it is incurred.

Grant cost

Grant expenditure is recognised where there is a legal or constructive obligation to pay. All grants, both single and multi-year, are recognised in the financial statements as liabilities after they have been approved, the recipients have been notified and there are no further terms and conditions to be fulfilled which are within the control of the Foundation. In these circumstances there is a valid expectation by the recipients that they will receive the grant.

Debtors

Trade and other debtors are recognised at their settlement value. Prepayments are valued at the amount prepaid.

Creditors

Creditors and provisions are recognised where the Foundation has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Provisions

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 the amount can be measured reliably.

Provisions are recognised when there is a legal or constructive financial obligation, that can be reliably estimated and for which there is an expectation that payment will be made.

Organisational development provisions

Financial instruments other than investments

The Foundation has financial assets and financial liabilities of a kind that qualify as basic. Basic financial instruments are measured at their settlement value in the case of current assets.

Covenanted income is recognised in the year to which the Foundation is entitled to the income.

Donated services and facilities 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.

The Foundation’s organisational development programme provides the recipient charity with access to specialist support, the cost of which is met by the Foundation directly. The estimated costs of the specialist are recognised as a provision on approval as the Foundation has a constructive obligation to pay but the amount and timing is subject to uncertainty. The grantee is informed of the approved intervention but not the value.

Releases of grant commitments

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.

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Lloyds Bank Foundation Annual Report

Allocation of expenditure

Support costs are allocated where possible to the particular activity to which the costs relates.

Irrecoverable VAT

Any irrecoverable VAT is charged to the Statement of Financial Activities or capitalised as part of the cost of the related asset, where appropriate.

Tax

Where expenditure contributes to more than one area of activity, the costs are allocated on the basis of the activity’s grant expenditure.

Governance costs are the costs associated with the constitutional and statutory requirements and the strategic management of the Foundation’s activities.

Tangible assets

Tangible assets are included at historic cost less accumulated depreciation.

Capitalisation and depreciation

The minimum value for the capitalisation of tangible fixed assets is £1,000.

Depreciation is calculated so as to write off the cost of tangible fixed assets on a straight-line basis over the expected useful lives of the assets concerned. The principal rates used, which are consistent with last year, are:

Computer equipment Furniture and other office equipment

20% per annum 10% per annum

Pension costs

The Foundation participated in two separate independently managed, defined benefit, occupational pension schemes: the Lloyds Bank Group Pension Schemes No.1 and No.2 (the Schemes). There are no longer any active members in either Scheme. It is not possible to identify the Foundation’s share of the underlying assets and liabilities of these Schemes and hence contributions to the Schemes are accounted for as if they were defined contribution schemes; the cost recognised within the Statement of Financial Activities for the year being equal to the contributions payable to the Schemes for the year.

The Foundation also participates in defined contribution schemes. Contributions in respect of the year are charged to the Statement of Financial Activities in the year to which they relate.

Redundancy payments

Redundancy payments may occur where the Foundation has agreed to terminate the employment of an employee. The amounts are included in the financial statements when the payment has been formally agreed.

The Foundation is a registered charity and as such is entitled to certain tax exemptions on income and profits from investments, surpluses on any trading activities carried on in furtherance of the Foundation’s primary purpose, to the extent these profits and surpluses are applied for charitable purposes.

Accounting estimates and judgements

In the application of the Group’s accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.

Going concern

The Trustees have adopted the going concern basis of accounting in preparing the financial statements having assessed the principal risks relating to the Foundation’s income. The Foundation receives virtually all its income under a covenant with Lloyds Banking Group Plc which requires nine years’ notice to be given prior to termination and which contains provision for a minimum annual payment of £14.4m. The covenant income for the full year is received early in the financial year prior to the signing of the financial statements. The Foundation holds a level of reserves to enable its activities to continue for more than one year from the balance sheet date in the event that no further funding was received. Accordingly, the Foundation expects to continue to have access to sufficient liquid resources to meet its obligations for a period of at least 12 months after the approval of these financial statements, namely the period to June 2027.

Operating leases

Costs in respect of operating leases are charged to the Statement of Financial Activities on a straight-line basis.

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Lloyds Bank Foundation Annual Report

2. DONATIONS AND LEGACIES

----- Start of picture text -----
£’000 £’000 £’000 £’000 £’000 £’000
Donations from Lloyds
Banking Group
Covenant income 24,339 - 24,339 25,421 - 25,421
- - - -
Riot response funding 450 450
- - - -
40th anniversary funding 1,384 1,384
External audit services 40 - 40 39 - 39
Other donations
- -
The Legal Foundation 1 1 10 10
National Lottery - - - -
2,097 2,097
Community Fund
Donated services - - - 18 - 18
Other donated services 25,764 2,097 27,861 25,938 - 25,938
Unrestricted Restricted Total 2025 Unrestricted Restricted Total 2024
----- End of picture text -----

Covenant income is the sum that the Foundation receives from Lloyds Banking Group.

The Foundation’s auditors were remunerated with an allocation from the Lloyds Banking Group audit fee. As a result, the external audit fee has been recognised as external audit donated services from the Lloyds Banking Group. The amount recognised is the fair value that the Foundation believes they would pay for external audit services if the Lloyds Banking Group did not pay on their behalf.

3. OTHER INCOME

----- Start of picture text -----
£’000 £’000 £’000 £’000 £’000 £’000
Administration support and costs
recharged to Lloyds Bank Foundation - -
17 17 10 10
for the Channel Islands and Halifax
Foundation for Northern Ireland
- -
Other income 107 107 106 106
17 107 124 10 106 116
Unrestricted Restricted 2025 Unrestricted Restricted 2024
----- End of picture text -----

4.ANALYSIS OF GRANT EXPENDITURE

4a Charitable activities

----- Start of picture text -----
Year ended:
Grant Direct Other Support Total
31 December 2025
awards staff costs direct costs costs
£’000 £’000 £’000 £’000 £’000
Long-term funding 18,590 1,608 704 1,419 22,321
Developmental support 3,861 472 533 330 5,196
Influencing Policy and
1,196 797 459 166 2,618
Practice
23,647 2,877 1,696 1,915 30,135
Year ended:
Grant Direct Other Support
31 December 2024 Total
awards staff costs direct costs costs
£’000 £’000 £’000 £’000 £’000
Long-term funding 17,114 1,466 262 1,109 19,951
Developmental support 1,870 423 611 171 3,075
Influencing Policy and
615 697 311 96 1,719
Practice
19,599 2,586 1,184 1,376 24,745
----- End of picture text -----

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Lloyds Bank Foundation Annual Report

Support costs have been allocated using the value of each programme’s grant and direct expenditure. See note 4d for further information about support costs.

4b Grant awards

		2025		2024
Long-term funding	No.	£’000	No.	£’000
Coregrantprogramme	166	14,571	192	14,794
Financial resilience	33	2,568	-	-
Riot response funding		-		505
Matched Giving		1,934		1,865
		19,073		17,164
Developmental support
Organisational Development Support		3,658		2,019
Development funding	9	453	7	341
		4,111	199	2,360
InfluencingPolicyand Practice
Nationalgrantprogrammes	21	1,206	18	618
Totalgrants awarded in theyear	229	24,390	217	20,142
Lessgrants cancelled in theyear		(743)		(543)
Grantspayable(Note 4a)		23,647		19,599

4c Grants payable

The table below shows the reconciliation between amounts approved during the year and amounts paid during the year.

----- Start of picture text -----
Reconciliation of grants payable 2025 2024
£’000 £’000
Amount outstanding at 1 January 17,938 16,045
Grants approved/(cancelled) in year
Grants approved 24,390 20,142
Grants cancelled (734) (543)
Grants payable for the year 23,656 19,599
Grants paid during the year (20,137) (17,706)
Amounts outstanding at 31 December 21,457 17,938
Amounts outstanding at 31 December split be-
tween:
Due within one year (Note 11) 13,214 11,332
Due after more than one year (Note 12) 7,093 5,452
Provision for liabilities and charges (Note 13) 1,150 1,154
Amounts outstanding at 31 December 21,457 17,938
----- End of picture text -----

A full list of the grants approved in 2025 can be found on our website https://www.lloydsbankfoundation.org.uk/our-impact/who-we-support

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Lloyds Bank Foundation Annual Report

----- Start of picture text -----
4d Support costs 2025 2024
£’000 £’000
Finance 382 363
Human Resources 292 298
Facilities 251 246
IT 223 189
Executive 738 272
Trustees 50 7
1,936 1,374
----- End of picture text -----

6. STAFF COSTS

----- Start of picture text -----
2025 2024
£’000 £’000
Wages and salaries 2,754 2,527
Social security costs 350 286
Pension costs 536 469
Other staff costs 10 54
Agency staff costs 126 65
3,776 3,401
----- End of picture text -----

5. GOVERNANCE COSTS

----- Start of picture text -----
2025 2024
£’000 £’000
Legal fees 36 18
Auditors’ remuneration 40 39
Trustee costs and expenses 47 5
Other costs 3 2
126 64
----- End of picture text -----

Governance costs are included within relevant headings under Support costs (note 4d).

The external auditors are remunerated by Lloyds Banking Group and the value is included in Incoming Resources as a donated service and included in Governance costs.

The Trustees, who are also the Directors of the Foundation, received no remuneration

during the year (2024: nil).

The average number of persons employed by the Foundation was 53 (2024: 50) of which full-time employees was 45 (2024: 46) and part time was 10 (2024: 4). This included one staff seconded from Lloyds Banking Group (2024: two).

The number of employees receiving emoluments (salary, allowances and benefits in kind, excluding pension contribution) greater than £60,000 are as follows:

----- Start of picture text -----
2025 2024
No. No.
£60,001 - £70,000 4 1
£70,001 - £80,000 1 2
£90,001 - £100,000 2 2
-
£100,001 - £110,000 1
-
£110,001 - £120,000 1
-
£140,001 - £150,000 1
10 5
----- End of picture text -----

Trustees costs and expenses include expenses paid directly or by reimbursement for seven Trustees, principally travel and subsistence totalling £6k (2024: £5k, seven trustees) and costs of recruitment of new trustees.

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Lloyds Bank Foundation Annual Report

Total remuneration received by key management personnel being the Senior Leadership Team was £645k (2024: £561k).

----- Start of picture text -----
Pension costs 2025 2024
£’000 £’000
Defined contribution scheme 536 469
536 469
----- End of picture text -----

Lloyds Banking Group defined benefit schemes

The schemes that the Foundation contributed to, No. 1 (final contributions made in 2019) and No. 2 Scheme (final contribution made in 2018), are administered by Lloyds Banking Group. The Foundation is not responsible for any additional contributions agreed under the deficit recovery plan which are met on the Foundation’s behalf by Lloyds Bank. More information on the funding of the Group’s pensions schemes can be found in the latest Report and Financial Statements of Lloyds Banking Group.

8. TANGIBLE ASSETS

	Furniture and office equipment	Computer equipment3	2025 Total	2024 Total
	£’000	£’000	£’000	£’000
Cost
At beginning of the year	91	109	200	197
Additions	-	2	2	2
At end of the year	91	111	202	199

Includes the value of computer software[3]

Accumulated depreciation

Lloyds Banking Group Defined Contribution schemes

Since 1 April 2019, the Foundation’s defined contribution pension scheme arrangements are provided under a Group Personal Pension arrangement with Scottish Widows. The contributions made to the scheme were £536k (2024: £469k). Since September 2022 the pension scheme has operated under a salary sacrifice basis.

7. OTHER EXPENDITURE

7. OTHER EXPENDITURE
	2025	2024
	£’000	£’000
Net (expenditure) is stated after charging
Depreciation	12	29
Operating lease costs	79	79
Auditor’s remuneration (Statutory audit)	40	39

Accumulated depreciation
At beginning of the year	36	102	138	108
Charge for the year	9	3	12	29
At end of the year	45	105	150	138

Net book value

Net book value
At beginning of the year	55	57	112	89
At end of the year	46	6	52	62

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Lloyds Bank Foundation Annual Report

9. INVESTMENTS

----- Start of picture text -----
Fixed and current asset investments 2025 2024
£’000 £’000
Fixed asset investments 17,663 15,965
Current asset investments 28,001 24,953
45,664 40,918
Movement in year
As at 1 January 40,918 32,331
Investment income reinvested 68 40
-
Disposal of fixed asset investments (1,500)
-
Additions 1,500
Net gain on investments 1,650 1,212
Management fees (20) (18)
Movement on deposits 3,048 7,353
As at 31 December 45,664 40,918
----- End of picture text -----

----- Start of picture text -----
2025 2025 2024 2024
Breakdown of investments % of % of
£’000 £’000
(excluding short-term deposits) portfolio portfolio
Cash and other liquid assets
-Cash 1 0.0% 18 0.1%
-Institutional Liquidity Funds 1,603 9.1% 1,538 9.6%
Sub-total 1,604 9.1% 1,556 9.7%
Multi asset funds 16,059 90.9% 14,409 90.3%
Total 17,663 100.0% 15,965 100.0%
----- End of picture text -----

Details of the nature of the investment assets, valuation methods and risk management are included in the Trustees’ report.

----- Start of picture text -----
2025 2024
Investment income £’000 £’000
Dividend income 68 39
Bank interest 1,542 1,663
Total 1,610 1,702
----- End of picture text -----

10. DEBTORS

----- Start of picture text -----
2025 2024
£’000 £’000
Other debtors 1,404 47
Prepayments and
336 874
accrued income
1,740 921
----- End of picture text -----

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
2025 2024
£’000 £’000
Grants payable (Note 4c) 13,214 11,333
Trade creditors 81 82
Other creditors 50 89
Accruals and deferred
121 64
income
13,466 11,567
----- End of picture text -----

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Lloyds Bank Foundation Annual Report

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

----- Start of picture text -----
2025 2024
£’000 £’000
Grants payable (Note 4c) 7,093 5,452
7,093 5,452
----- End of picture text -----

13. PROVISION FOR LIABILITIES AND CHARGES

----- Start of picture text -----
2025 2024
£’000 £’000
Balance brought forward 1,155 1,243
Additions 2,171 1,841
Cancellations in the year (249) (317)
Utilised during the year (1,927) (1,613)
Balance carried forward 1,150 1,155
----- End of picture text -----

The provision relates to the Foundation’s Organisational Development and Community Development programmes which provides charities with access to specialist support, the cost of which is met by the Foundation. It is expected to be utilised within the next 12 months.

14. MOVEMENT IN FUNDS

----- Start of picture text -----
£’000 £’000 £’000 £’000 £’000 £’000
Unrestricted funds
General fund 23,705 27,391 (28,615) 1,650 650 24,781
Designated funds
- - -
Fixed asset funds 62 (10) 52
- - - -
Research funding 144 (144)
Organisational develop- - - - -
90 (90)
ment projects and support
- - -
Communities funding 93 149 242
Grant funds carried
- - -
1,260 (605) 655
forward
- - - -
Brand update 50 50
- - -
Total designated 1,649 (650) 999
-
Total unrestricted 25,354 27,391 (28,615) 1,650 25,780
Restricted funds
Investing in the Power of - -
2,097 (1,435) 662
Civil Society
- - -
LocalMotion (2) 107 (105)
- -
Total restricted (2) 2,204 (1,540) 662
-
Total 25,352 29,595 (30,155) 1,650 26,442
Balance at 1 Jan 2025 Total incoming resources Total resources expended Change in market value of investments Transfers Balance at 31 Dec 2025
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Lloyds Bank Foundation Annual Report

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£’000 £’000 £’000 £’000 £’000 £’000
Unrestricted funds
General fund 20,753 27,655 (24,660) 1,212 (1,254) 23,706
Balance at 1 Jan 2024 Total income Total expenditure Change in market value of investments Transfers Balance at 31 Dec 2024
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Designated Funds:

Fixed asset funds

The fixed asset fund represents the value invested in operating fixed assets.

Research funding

Comprises funds to assess the impact of the Foundation’s charitable activities.

Communities funding

Comprises funds to enable the Foundation’s work to support local communities to design, resource and deliver new services.

Organisational development projects and support

Comprises funds to support core grant holders through consultancy and training.

Designated funds
Fixed asset funds	89	-	-	-	(27)	62
Research funding	190	-	-	-	(46)	144
Organisational development projects and support	3	-	-	-	87	90
Communities funding	113	-	-	-	(20)	93
Grant funds carried forward	-	-	-	-	1,260	1,260
Total designated	395	-	-	-	1,254	1,649
Total unrestricted	21,148	27,654	(24,660)	1,212	-	25,354
Restricted funds
LocalMotion	(1)	102	(103)	-	-	(2)
Total restricted	(1)	102	(103)	-	-	(2)
Total	21,147	27,757	(24,763)	1,212	-	25,353

Grant funds carried forward

Comprises funds set aside for grant extensions expected to be awarded in 2025 which charities have requested be awarded in 2026.

Restricted Funds:

LocalMotion

The fund was established in 2018 by the Foundation with five partner organisations Esme Fairbairn, Paul Hamlyn, City Bridge Trust, Tudor Trust and Lankelly Chase Foundation with the aim developing strategies for regeneration in deprived areas. The financial administration of LocalMotion was transferred to Esme Fairbairn from January 2022 and the balance on restricted funds was transferred at that time. The Foundation continues to meet the salary cost of the LocalMotion Director and recharges the cost to Esme Fairbairn.

National Lottery Community Fund

The Foundation received funding from the National Lottery Community Fund to provide development support and capacity building with partners.

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Lloyds Bank Foundation Annual Report

ANALYSIS OF NET ASSETS BETWEEN FUNDS

Net assets as at 31 December 2025

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Designated Restricted
General fund Total
funds funds
£’000 £’000 £’000 £’000
- -
Tangible fixed assets 52 52
- -
Investments 17,663 17,663
Current assets 28,827 947 662 30,436
Creditors due within
- -
(13,466) (13,466)
one year
Creditors due after
- -
(7,093) (7,093)
more than one year
- -
Provisions (1,150) (1,150)
24,781 999 662 26,442
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Net assets as at 31 December 2024

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Designated Restricted
General fund Total
funds funds
£’000 £’000 £’000 £’000
- -
Tangible fixed assets 62 62
- -
Investments 15,965 15,965
Current assets 27,264 237 (2) 27,499
Creditors due within
- -
(11,567) (11,567)
one year
Creditors due after
- -
(5,452) (5,452)
more than one year
- -
Provisions (1,155) (1,155)
25,055 299 (2) 25,352
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15. GUARANTEE COMPANY

The Foundation is a company limited by guarantee not having share capital. The liability of the members is limited by the Memorandum of Association to £1 each. The number of Trustees (including the Chair) who are also members at 31 December 2025 was 11 (2024: 10).

16. RELATED PARTY TRANSACTIONS

16a Connected Foundations

The following Foundations are connected, having common and related objects:

Halifax Foundation for Northern Ireland (HFNI)

Clifton House Heritage Centre 2 North Queen Street Belfast BT15 1ES

The Foundation is working jointly with HFNI and LBFCI on new software to administer the Lloyds Banking Group Matched Giving Scheme. As part of this development the Foundation invoiced HFNI £3,959 in respect of its share of work completed (2024: £472).

Lloyds Bank Foundation for the Channel Islands

Society Building 8 All Saints Street London N1 9RL

The Foundation received £9,840 (2024: £9,590) from the Lloyds Bank Foundation for the Channel Islands (LBFCI) in respect of time spent by the Chief Executive and his staff on Lloyds Bank Foundation for the Channel Islands business.

To provide the grant administration and financial services the LBFCI and the Foundation agreed to adopt common financial system and grants database. LBFCI implemented the Salesforce grants database in 2023 following LBFEW’s earlier adoption. LBFEW co-ordinated the implementation for the Foundation and provided funding to LBFCI to meet the implementation costs which totalled £22,883. LBFCI are repaying this funding over three years.

No interest is payable on this arrangement. Based on LBG overnight deposit rates this represents interest foregone of around £233 (2024: £210). At 31 December 2025 there was £3,064 due from LBFCI to the Foundation under this arrangement (2024: £9,191). The Foundation is working jointly with HFNI and LBFCI on new software to administer the Lloyds Banking Group Matched Giving Scheme. As part of this development the Foundation invoiced LBFCI £2,950 in respect of their share of work completed (2024: £915).

Bank of Scotland Foundation

The Mound Edinburgh EH1 1YZ

There were no transactions with the Bank of Scotland Foundation in 2025 or 2024.

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Lloyds Bank Foundation Annual Report

16b Connected company

The Foundation derives its revenue primarily from Lloyds Banking Group plc. In December 2013 the Foundation entered into an agreement with Lloyds Banking Group plc whereby the Foundation is to receive 0.3606% of the Lloyds Banking Group’s adjusted pre-tax profits, averaged over three years, subject to a minimum amount of £14.4m and a maximum amount of approximately £50.3m which increases by RPI each year.

The following transactions took place with Lloyds Banking Group plc during the year, and with which there were the following balances at the year-end: The Foundation received income of £24.3m (2024: £25.4m) as income, and £1.4m (2024: £1.2k) bank interest was received from Lloyds Banking Group plc. At 31 December 2025 a balance of £44k is in a current account with Lloyds Banking Group plc (2024: £136k), £651k in an Instant Access account (2024: £1.5m), and held Treasury deposits of £23.0m (2024: £19.5m).

16c Transactions

During the year a number of grants and payments were made where a Trustee or senior member of staff of the Foundation is affiliated to a connected organisation.

Director of Charity Development Andre Clarke is a trustee of IVAR. In 2025, the Foundation awarded a grant of £162,541 to IVAR who are one of the partners involved in the Investing in the Power of Civil Society project. A total of £57,367 was paid in respect of this grant in 2025, leaving a balance due of £105,174 at 31 December 2025. In addition, the Foundation awarded funding of £5,000 (2024: £5,000) towards the cost of the UK Evaluation Roundtable. The funding of £5,000 was fully paid in 2025 (2024: £5,000 paid) leaving no outstanding balance at 31 December 2025 (2024: £nil). The Foundation also awarded funding of £15,000 in 2024 to IVAR in support of their Open and Trusting initiative. No payments have been made in respect of this funding in 2024 or 2025 leaving a balance of £15,000 outstanding at 31 December 2025 (2024: £15,000).

Head of Finance, Andrew Whitehead, is the Chair of the Pension Trustees of a pension scheme sponsored by Shaftesbury. In 2025, the Foundation made a donation of £500 to Shaftesbury (2024: £500).

Manager for London, Sara Cooney, is a Trustee of London Funders. The Foundation is a member, paying the annual fee of £1,470 (2024: £1,400).

Manager for Wales, Rachel Marshall, is a Trustee of St Andrews Major CIW Primary School PTA. During the year ended 31 December 2025, the Foundation made a donation in relation to the Matched Giving Scheme of £500 – there were no payments in 2025 (2024 £nil).

17. LEASE COMMITMENTS

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The Foundation had a total commitment under Buildings Other
non-cancellable operating leases at 31 December:
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Within one year 94 94 3 3
-
Within two to five years 95 13 16
Total 94 189 16 19
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The Foundation leases office accommodation within the NCVO Society Building in London. The annual lease commitment is £94,435 per annum under a five-year lease which expires in January 2027.

Reference and Administrative Details

Registered charity number Company Limited by Guarantee Registered Number Country of registration Country of incorporation

327114 01971242 England & Wales United Kingdom

Registered office and operational address Society Building 8 All Saints Street London N1 9RL

Independent Auditors Deloitte LLP Abbots House Abbey Street Reading RG1 3BD

Bankers

Investment managers Cazenove

Lloyds Bank plc 10 Gresham Street London EC2V 7AE

1 London Wall Place London EC2Y 5AU

Solicitors

Stone King LLP Boundary House 91 Charterhouse Street London EC1M 6HR

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Lloyds Bank Foundation Annual Report

Trustees and Senior Management

Board of Trustees:

Chair

Dame Ann Limb DBE DL (until 3 March 2026) Enver Solomon OBE (from 1 October 2025 – Acting Chair from 3 March 2026) Vice Chair Ruth Sutherland CBE (until 2 February 2026) Trustees

Bushra Ahmed (Chair of People & Culture Committee) Mark Barrow (from 2 February 2026) Cherrie Bija Clara Govier (from 2 February 2026) Baroness Ruth Hunt (from 2 February 2026) Ajneet Jassey Darren Knight (until 2 February 2026) Sarah Legg (Chair of Audit and Risk Committee) Kamran Mallick (until 2 February 2026) Laura Needham Miles Ravenhill (from 1 May 2025) Claud Williams

Senior Management Team:

Chief Executive

Matt Hyde OBE Chief Operating Officer James Phillips (until 20 February 2026) Mary Clegg (from 9 January 2026) Natalie Golding (from May 2026) Director of Grants André Clark Director of Communities Jill Baker Director of Policy, Communications and Research Nicole Sykes (from 2 January 2025)

Thank you

Photo credit: Taking Flight Theatre Company at the Senedd

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