Glossary

Helpful A-Z glossary listing key Lloyds Banking Group terms and their definition

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Negative equity mortgages

Negative equity occurs when the value of the property purchased using the mortgage is below the balance outstanding on the loan. Negative equity is the value of the asset less the outstanding balance on the loan.

Net asset value per ordinary share

Shareholders' equity divided by the number of ordinary shares and limited voting ordinary shares in issue, adjusted to exclude shares held under certain employee share ownership plans.

Net Stable Funding Ratio (NSFR)

The ratio of available stable funding to required stable funding over a one year time horizon, assuming a stressed scenario. The ratio is required to be over 100% with effect from 2018. Available stable funding would include such items as equity capital, preferred stock with a maturity of over 1 year, or liabilities with a maturity of over 1 year.

Net Interest Income

The difference between interest received on assets and interest paid on liabilities.

Net interest margin

Net interest margin is net interest income as a percentage of average interest-earning assets.