London, July 16, 2026, 10:17 BST
Lloyds Banking Group plc LON:LLOY has now used about 72% of its £1.75 billion buyback. The bank paid an average 111.64p for 14 million shares in the last two sessions, which is almost 93% higher than its reported TNAV of 57.9p a share. TNAV excludes intangible assets. Lloyds picked up 7 million shares both on July 14 and July 15, and plans to cancel them.
The higher price changes the math for buybacks. Repurchasing above TNAV still bumps up earnings per share, but if the balance sheet is flat it cuts TNAV per share, since the bank pays over book for each share it cancels. At 111.64p, £1 billion can retire about 896 million shares—way fewer than the 2.26 billion shares the same money would’ve bought at Lloyds’ 2022 average price of 44.16p.
Lloyds shares traded at 112.85p, up 0.3% in morning London trade, sitting just 2.7% under their 52-week high. The stock is now at 1.95 times March TNAV. Investors have less than two weeks to go until half-year results and a strategy update set for July 30.
| Bank | Share price (p) | Q1 TNAV/share (p) | Price/TNAV | Q1 ROTE |
|---|---|---|---|---|
| Lloyds Banking Group | 112.85 | 57.9 | 1.95x | 17.0% |
| NatWest Group plc (LON:NWG) | 665.40 | 400 | 1.66x | 18.2% |
| Barclays PLC LON:BARC | 526.00 | 405 | 1.30x | 13.5% |
Prices are from 09:56 to 10:06 BST. Price/TNAV ratios are based on March 31 TNAV as reported by each company. ROTE stands for return on tangible equity, which is profit divided by tangible equity.
The premium isn’t just about last quarter’s returns. NatWest posted a Q1 ROTE of 18.2%, higher than Lloyds’ 17.0%, but Lloyds still trades at a multiple about 17% above NatWest. Barclays came in with a 13.5% return and its price-to-TNAV multiple was about a third lower than Lloyds. The numbers show Lloyds is getting a higher market value for each pound of tangible equity.
Lloyds has spent £1.253 billion so far on share buybacks through July 15, getting 1.266 billion shares at an average price of 98.99p each, according to daily regulatory notice data. That leaves about £496.5 million, or 28.4% of the buyback budget, unspent. The bank picked up 74.0 million shares between July 1 and July 15, paying an average 112.72p. Investegate
Looking back, the number of shares bought per £1 billion has fallen:
| Results year tied to programme | Spend | Shares bought | Average price | Shares per £1bn |
|---|---|---|---|---|
| FY2021 | £2.0bn | 4.529bn | 44.16p | 2.264bn |
| FY2022 | £2.0bn | 4.386bn | 45.60p | 2.193bn |
| FY2023 | £2.0bn | 3.686bn | 54.25p | 1.843bn |
| FY2024 | £1.7bn | 2.204bn | 77.13p | 1.297bn |
| FY2025, through July 15 | £1.253bn of £1.75bn | 1.266bn | 98.99p | 1.010bn |
Previous rows reflect Lloyds’ own disclosures. The latest row is based on daily filings up to July 15; shares per £1 billion uses the average purchase price.
The average price for the current programme is 28% higher than the prior completed programme, and it’s now more than double the 2022 average. Lloyds continues to reduce the denominator for its earnings per share, but the same capital now buys back a smaller slice of its own shares. That’s the quieter downside of a stronger share price.
Lloyds’ results leave it room to keep handing cash back to shareholders. Pretax profit for the first quarter climbed 33% to £2.025 billion. Underlying net interest income rose 8% to £3.569 billion. Return on tangible equity hit 17.0%. CEO Charlie Nunn said, “We are confident in our delivery for the year ahead,” and the group stuck to its ROTE aim over 16% through 2026. Lloyds noted that its Q1 buyback partly offset a 0.9p increase in TNAV, pointing to the capital balancing act. Lloyds Banking Group
UK GDP inched up 0.1% in May, the Office for National Statistics said Thursday, matching the 0.1% drop recorded in April. Services increased, but both production and construction fell back. Output grew 0.7% in the three months to May. The ONS said its early estimate might change.
The premium might get smaller even if shares don’t drop, if retained profit or reserves push up TNAV at the half-year. But that depends—if lending slows or impairment charges rise, the return behind the valuation could fall. The broker buys shares on its own within set limits, so the £496.5 million left in the programme doesn’t have to go at July’s rate or price.
Lloyds’ July 30 update will break out its first new book-value number since March and outline its latest strategy. Investors will watch to see if retained earnings are lifting TNAV quickly enough to catch up with the price Lloyds is spending on buybacks.
