SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K   
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
 
12 August 2011
 
 
LLOYDS BANKING GROUP plc
(Translation of registrant's name into English)
 
25 Gresham Street
London
EC2V 7HN
United Kingdom
(Address of principal executive offices)
 
 
 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
 
Form 20-F..X.. Form 40-F.....
 
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes ..... No ..X..
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b): 82- ________

 
This report on Form 6-K shall be deemed incorporated by reference into the company's Registration Statement on Form F-3 (File Nos. 333-167844; 333-167844-01) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

 
 
 
 
Lloyds Banking Group plc
 
 
Lloyds Banking Group plc hereby incorporates by reference the following exhibit to this report on Form 6-K into its Registration Statement on Form F-3 (File Nos. 333-167844; 333-167844-01):
 
 
Exhibit
  
Document
1
  
Statement of Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preference Dividends.

 
 
 
 
Signatures
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
LLOYDS BANKING GROUP plc
(Registrant)
  
   
       
By:
/s/ T Tookey
  
  Name: Tim J W Tookey  
  Title:
Group Finance Director
Lloyds Banking Group plc
  
 
12 August 2011
 
 
 
 
Exhibit 1
 
Ratio of earnings to fixed charges

The table below shows the ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preference dividends:
 
   
Six months ended
     Year ended  
Earnings (1)
  
30 June
2011
    
31 Dec
2010
    
31 Dec
2009
    
31 Dec
2008(2)
    
31 Dec
2007(2)
    
31 Dec
2006(2)
  
      £m       £m       £m       £m       £m       £m  
Profit before tax
     (51 )      (2,919 )     1,042       760       3,999       4,249  
Add: Share of losses / (profits) from joint ventures and associates
     (14 )      88       752       (4 )     (10 )     (6 )
Add: Dividends received from joint ventures and associates
     2       1       2       52       2       2  
Add: Fixed charges
     7,681       17,173       19,866       10,352       11,208       9,131  
Earnings
     7,618       14,343       21,662       11,160       15,199       13,376  
                                                 
                                                 
Fixed charges
                                                
                                                 
Interest expensed and capitalised (3)
     7,616       17,034       19,730       10,277       11,138       9,059  
Estimated interest included within rental expense (4)
     65       139       136       75       70       72  
Fixed charges
     7,681       17,173       19,866       10,352       11,208       9,131  
                                                 
Preference dividends (5)
     -       -       -       -       -       -  
                                                 
Combined fixed charges and preference dividends
     7,681       17,173       19,866       10,352       11,208       9,131  
                                                 
Ratios
                                                
Ratio of earnings to fixed charges
     N/A       N/A       1.09       1.08       1.36       1.46  
Ratio of earnings to combined fixed charges and preference dividends
     N/A       N/A       1.09       1.08       1.36       1.46  

In the six months to 30 June 2011 earnings were inadequate to cover fixed charges by £63 million and to cover combined fixed charges and preference dividends by £63 million.
 
In the year to 31 December 2010 earnings were inadequate to cover fixed charges by £2,830 million and to cover combined fixed charges and preference dividends by £2,830 million.

 
 
 
 
Notes

(1)  
For the purposes of these ratios, earnings consist of profit before tax, less the unremitted income of joint ventures and associates plus fixed charges.  Unremitted income is calculated as the share of profits / losses from joint ventures and associates less dividends received.

(2)  
The profit before tax for 2008 and preceding years was restated in 2009 to show the impact of amendment to IFRS 2 Share-based Payment, which was adopted in the Group's 2009 consolidated financial statements, as disclosed in note 1 on page F-11 of the Group's 2010 Annual Report on Form 20-F.

(3)  
Interest expensed and capitalised includes the amortisation of debt issuance costs, discounts and premiums and includes interest expense from the banking book included within “interest and similar expense” as well as interest expense from the trading book included within “other operating income”.

(4)  
Fixed charges consist of total interest expensed and capitalised plus an estimate for the proportion of rental expenses deemed to represent interest cost.  This has been estimated at 30% of rental expenses, as a reasonable approximation of the interest factor.

(5)  
There are no preference shares accounted for as equity; all preference shares being accounted for as debt and therefore preference share dividends are already included within interest costs.  As a result, the ratios calculated using fixed charges and combined fixed charges plus preference dividends are the same.