The bank said its additional capital requirements will be met without having to fundraise through the issue of new shares or securities.
The update, which follows a review of the banking sector’s capital strength by the new Prudential Regulation Authority, said Lloyds should be able to rely on capital generated from its core business and non-core disposals.
The Bank of England recently revealed a £25 billion capital hole among Britain’s major lenders - with Lloyds, Royal Bank of Scotland and Barclays believed to account for £9 billion of the shortfall between them.
The group is selling off a raft of assets, including a recent deal for a 20% stake in wealth manager St James’s Place.
Lloyds expects its core capital ratio to be above the industry benchmark of 9% at the end of this year and higher than 10% by the end of 2014.
Chief executive Antonio Horta-Osorio said: “We are pleased with the substantial progress being made in the delivery of our customer-focused strategy.
“Our strong capital position enables the group to actively support growth and lending in the UK economy as well as delivering sustainable results for our shareholders.”