London, January 15, 2026, 09:41 GMT
- The Guardian reported that Lloyds is under scrutiny over privacy concerns after using staff banking data during pay negotiations
- Barclays and NatWest revealed new share buybacks as part of their ongoing repurchase plans
- UK bank shares have surged sharply over the past year, putting governance and regulatory risks under the microscope
The Guardian reported that Britain’s data watchdog is probing Lloyds Banking Group over its use of staff banking data amid union pay negotiations, sparking new concerns about how major lenders manage customer information.
Lloyds shares climbed about 0.8% to roughly 102p, hovering near a 52-week high. Over the past year, the stock has surged around 88%. This rally tightens the margin for any reputational or regulatory setbacks as the bank gears up to unveil a new executive pay policy for shareholders.
Barclays climbed roughly 1%, pushing its gains to around 82% over the past year, based on Hargreaves Lansdown data. NatWest also saw gains, with investors backing UK banks that continue to bolster the FTSE 100’s upward momentum.
Barclays bought 3,545,144 shares on January 14, paying a volume-weighted average price of 479.5291p. This move is part of a buyback scheme the bank announced back in October. For clarity, a buyback means the company is repurchasing its own shares, often to return cash to shareholders; the volume-weighted average price factors in trade size to give a weighted average.
NatWest revealed it bought back 842,406 shares on January 14, paying a volume-weighted average of 630.97p each as part of its current buyback scheme. The bank also confirmed plans to cancel these repurchased shares.
The Guardian report revealed that Lloyds compiled aggregated salary, spending, and savings data from about 30,000 employee accounts for a presentation to union reps. The bank, which owns Halifax and Bank of Scotland, reportedly pushes its staff hard to use its own banking services.
“We are aware of this incident and are making inquiries with Lloyds Banking Group,” an Information Commissioner’s Office spokesperson told the Guardian. The watchdog can impose fines up to 4% of a company’s annual turnover for serious breaches. The Guardian noted that for Lloyds, based on 2024 income, that could mean a penalty of roughly £1.36 billion.
Accord, a staff union at Lloyds, said the bank assured it the data used was fully aggregated and that no individual information was examined during negotiations. The union warned, according to the Guardian, that it would not hesitate to take legal action if the ICO finds LBG violated data privacy rules. It also called for an independent review of the incident.
The episode comes as Lloyds prepares a new three-year executive pay policy that could raise chief executive Charlie Nunn’s maximum salary, the Guardian reported earlier this week. A spokesperson said the bank will unveil proposals later this year, adding that “the proposals will reflect market developments and regulatory changes.” https://www.theguardian.com/business/2026/…
Bank stocks have shown vulnerability to sudden shifts in political and regulatory sentiment. Michael O’Rourke, chief market strategist at JonesTrading, pointed out that “after a nice run, and so-so or mediocre earnings, you’re seeing profit-taking and consolidation” among U.S. lenders. https://www.reuters.com/business/wall-stre…
Risks here aren’t evenly balanced. The ICO’s probe could escalate to a full-blown investigation, and unions have warned they might take legal action if the regulator uncovers any misconduct. A single misstep could quickly spiral beyond just a headline. Barclays is also under scrutiny over a proposed U.S. cap on credit-card interest rates. According to a Hargreaves Lansdown analyst, its U.S. card division makes up roughly 11% of group profits.
Investors are still backing a UK bank strategy focused on bigger payouts and capital returns, despite growing scrutiny. NatWest shares climbed roughly 1.7% to around 640p, marking a roughly 63% rise over the past year, according to Hargreaves Lansdown data.
