London, January 26, 2026, 08:55 GMT — Regular session
- Shares of Lloyds Banking Group edged higher in early London trading.
- With earnings looming, investors are digesting buzz about UK banks aiming for higher profit targets.
- Lloyds is set to release its full-year results later this week.
Lloyds Banking Group (LLOY.L) shares edged up roughly 0.6% to 102.30 pence by 0855 GMT, after fluctuating between 101.70 and 102.50 earlier in the session. The stock closed Friday at 101.65 and remains close to the high end of its 52-week range. 1
Timing is key. Lloyds is set to unveil its annual results later this week, and any guidance could sway the stock more than the actual profits.
Investors are eager to hear if the bank expects recent returns to continue amid tight mortgage pricing and mounting pressure on deposits. Any word on dividends or buybacks usually moves this stock quickly.
Reuters reported earlier that Britain’s largest banks, including HSBC and NatWest, plan to raise key profit targets in their upcoming earnings reports, with Barclays expected to follow suit. Jefferies analysts project Lloyds could boost its return on tangible equity (ROTE) to as high as 18.5% by 2028, up from this year’s target of just over 15%. The banks declined to comment. “UK banks have benefited from earnings resilience lasting longer than initially expected,” Peter Rothwell, head of banking at KPMG UK, said. 2
ROTE removes intangible assets and gauges profit against equity that shareholders can actually access. When that benchmark shifts, it resets how management is judged and how long the market will wait.
The broader market held firm, as London’s FTSE 100 inched up about 0.05% in early trading. 3
Exchange data revealed Lloyds kicked off trading at 102.15 pence, with roughly 92.6 million shares changing hands early on. This volume can amplify minor moves on the ticker. 4
Investors will zero in on Lloyds’ net interest margin when it reports — that’s the spread between income from loans and expenses on deposits. Any changes in impairment charges, which cover potential bad loans, will also draw attention. Costs and capital returns won’t escape scrutiny either.
The risk is straightforward: higher targets push expectations up. Should the UK economy slow down or interest rates drop faster than anticipated, earnings could weaken and the market may react negatively to guidance.
Lloyds will release its full-year results on Thursday, Jan. 29. CEO Charlie Nunn and CFO William Chalmers will address investors at 0930 GMT. 5
