London, Jan 9, 2026, 10:51 GMT — Regular session
- Lloyds shares dipped in London trade after hovering around the £1 level.
- UK house-price data and rate-sensitive trading kept the focus on domestic lenders.
- Investors are looking to late-January results for clues on margins and credit costs.
Lloyds Banking Group (LLOY.L) shares edged lower on Friday, down 0.37% at 99.68 pence by 1051 GMT after earlier touching 100.50 pence. The stock was trading just below Thursday’s close of 100.05 pence. 1
For UK lenders, the near-term question is whether a softer housing backdrop and shifting rate expectations start to show up in volumes and pricing. Lloyds is closely tied to the mortgage market, and the next update is close enough to keep positioning jumpy.
House-price data on Thursday showed the market cooled at year-end. Halifax said average UK house prices fell 0.6% in December and annual growth slowed to 0.3%, with its head of mortgages Amanda Bryden saying: “Average house prices fell by -0.6% in December.” 2
Lower house prices can dampen demand for new mortgages and sharpen competition on pricing, which can hit net interest margin — the gap between interest earned on loans and paid on deposits. That matters most for lenders that lean hard on UK retail banking.
Rates were back on the agenda after the Bank of England tweaked its timetable for selling gilts — UK government bonds — from its Asset Purchase Facility, the stockpile left by past bond-buying. The central bank rescheduled two auctions but left the rest of its January‑March programme unchanged. 3
British stocks were higher, with the FTSE 100 up 0.4% in early trade as markets waited for the U.S. jobs report later on Friday. Among big UK banks, Barclays slipped 0.3% and NatWest was flat, while HSBC rose 0.4%. 4
Technical traders have kept one eye on the 100p handle. Hargreaves Lansdown data put Lloyds’ year high at 101.70p, with Friday’s trade low around 99.46p. 5
But the risks cut both ways: faster rate cuts could squeeze interest income, while a sharper hit to jobs and wages could push up impairments, the provisions banks set aside for bad loans. Lloyds has also warned that a UK motor finance investigation could mean a bigger compensation bill. 6
Lloyds is due to publish preliminary results for 2025 on Jan. 29, when investors expect more colour on margins, credit costs and capital returns. 7
