London, Jan 23, 2026, 07:59 GMT — Premarket.
- Lloyds shares were last quoted at 101.9 pence in delayed trading before the London open
- The bank decided to redeem €500 million of its floating-rate senior notes ahead of schedule
- Investors are gearing up for Lloyds’ full-year results due Jan. 29 amid a changing UK rate outlook
Lloyds Banking Group (LLOY.L) shares held steady at 101.9 pence before Friday’s London session, following the bank’s announcement of an early redemption of €500 million in senior debt. 1
The timing is delicate for UK banks. Traders are weighing two key factors: if the Bank of England will slash rates earlier than anticipated, and what Lloyds will reveal next week regarding margins and credit.
Lloyds ended Thursday up 0.49%, swinging between 100.5 and 103.5 pence and hitting a new 52-week peak at 103.5 pence, data showed. Trading volume was around 206 million shares. 2
In a filing dated Jan. 22, the lender announced it had issued “irrevocable notice” to redeem all €500,000,000 of its floating rate senior unsecured callable notes due 2027. The redemption is set for March 5, 2026, at the early redemption amount plus accrued interest. These notes, originally issued on March 5, 2024, were scheduled to mature on March 5, 2027. 3
“Floating-rate” debt features interest that shifts with a benchmark rate, and “callable” means the issuer can repay early. This is standard in bank funding, yet it highlights how lenders are adjusting their balance sheets amid a shifting rate environment.
London stocks rose Thursday as U.S. President Donald Trump eased off his tough talk on Greenland, easing some of this week’s trade-war tensions, Reuters reported. Investors favored UK banks amid the shift in sentiment. 4
Rate expectations remain the main driver. Morgan Stanley moved its forecast for the Bank of England’s next rate cut to March, up from February, citing December’s headline inflation jump to 3.4%. The firm noted that markets are currently pricing in about 42 basis points of cuts by the end of 2026. 5
For Lloyds, the connection is straightforward. The bank’s net interest margin—the difference between earnings on loans and costs on deposits—usually shrinks when policy rates drop sharply, especially if mortgage rates remain competitive.
Investors can expect more clarity on Jan. 29, when Lloyds releases its preliminary 2025 results and holds a presentation, according to its financial calendar. 6
But there’s a snag. Provisions linked to the UK motor finance review still weigh heavily on the sector. In December, Adrian Dally, director of motor finance at the Finance and Leasing Association, noted: “For the redress scheme to be credible, it must only compensate those customers who have suffered loss.” 7
Friday kicks off with attention on whether Lloyds can stay above the £1 mark it flirted with earlier this week. Rate-cut wagers and shifts in bank funding are shaping sentiment ahead of the January 29 results.
