LONDON, July 25, 2026, 20:08 BST — Trading ended.
Lloyds ended Friday’s session at 113.50 pence, down just 2.2% from its 52-week peak. The bank also bought back one million shares at an average price of 113.4169 pence.
The transaction highlights a significant shift in buyback economics. Friday’s share price was 47% higher compared to the average from the previous completed programme. As a result, each pound purchased 32% less stock.
Lloyds’ £1.75 billion programme continues to back the share count, with the group set on cancelling the stock it buys. However, the recent rise in share prices adds to the challenge for future earnings growth.
The math looks significantly different now:
| Buyback benchmark | Price per share | Shares bought per £1 | Lower than FY2024 |
|---|---|---|---|
| Programme unveiled with FY2024 results | 77.13p | 1.297 | — |
| Q1 2026 running-programme average | 97.70p | 1.024 | 21.1% |
| July 24 acquisition | 113.4169p | 0.882 | 32.0% |
Lloyds’ reported purchase prices form the basis of all calculations.
Friday’s execution exceeded the first-quarter programme average by 16.1%. This further reduced shares bought per pound by 13.9%.
The stock advanced 1.79% across five sessions. On Friday, it climbed 0.93%, slightly surpassing the FTSE 100’s 0.91% increase.
Shares in Barclays LON:BARC climbed 1.14% on Friday. NatWest Group LON:NWG was up 0.81%. According to Google Finance, Lloyds traded at a price-to-earnings ratio of 14.78, with Barclays at 12.14 and NatWest at 9.68.
First-quarter results help justify that premium. Pretax profit climbed 33% to £2.025 billion. Return on tangible equity hit 17.0%. Underlying net interest income rose 8% to £3.569 billion.
The structural hedge was the main contributor, producing £1.6 billion in first-quarter income compared to £1.2 billion previously. Lloyds anticipates earnings of over £7 billion this year, and projects £8 billion in 2027.
Chief Executive Charlie Nunn stated, “We are confident in our delivery for the year ahead.” The bank maintained its guidance for 2026. Lloyds Banking Group
Based on March data, Friday’s repurchase price was 1.96 times tangible book. Tangible net assets were 57.9 pence per share. The half-year report will update that figure.
Lloyds is set to announce half-year earnings and unveil its updated strategy on Thursday at 9:30 a.m. Existing forecasts expect net interest income to exceed £14.9 billion. The bank is aiming for RoTE above 16% and capital generation greater than 200 basis points. The cost-income ratio is projected to stay under 50%.
The current plan is expected to produce approximately £2 billion in additional revenue by year-end, surpassing its initial aim of £1.5 billion. Investors will look for the forthcoming earnings bridge.
Risks: UK mortgage margins stayed under pressure throughout the first quarter. There is ongoing uncertainty regarding motor-finance response rates, operating costs, and litigation. Lloyds recorded a £101 million macroeconomic provision.
On Thursday, investors will see if higher income can offset increased costs for capital returns. The buyback continues to reduce the denominator but is no longer inexpensive.
