London, Feb 26, 2026, 08:16 GMT — Regular session
- Lloyds Banking Group edged up 0.4% at the start of London trading.
- The company reported snapping up another 6 million shares on Wednesday.
- Traders are watching for the UK fiscal update set for March 3, with attention also turning to the Bank of England’s call on March 19.
Shares in Lloyds Banking Group ticked up 0.4% to 104.9 pence at 0816 GMT, pausing after Wednesday’s strong finish as investors weighed interest-rate prospects.
Right now, the stock’s path hinges on a single factor: the speed at which the Bank of England shifts from hinting at rate cuts to actually pulling the trigger, and the ripple effect on banks’ earnings muscle. When rates drop, that net interest margin—the difference between what banks collect from loans versus pay out on deposits—can get pinched.
Lloyds put an actual number on the table for investors: the bank repurchased 6 million ordinary shares on Feb. 25 as part of its ongoing buyback scheme. Those shares are headed for cancellation. The average price paid? 103.7803 pence, volume-weighted.
Shares finished Wednesday at 104.5 pence, a gain of 1.85%, rebounding after Tuesday’s drop, trading data show.
Wednesday saw a lift in sentiment across the sector, with the FTSE 100 ending at a fresh record. HSBC surged after posting results, powering much of the move. “HSBC’s strategy appears to be working,” said Russ Mould, investment director at AJ Bell. Reuters
Speculation about rate moves keeps bubbling up. Chris Turner, ING’s global head of markets, said, “commentary that he has seen enough to justify a March rate cut could firm up that pricing in money markets.” Reuters
The latest Citi/YouGov survey out Wednesday found the public is dialing back inflation fears, prompting Citi to label the data “clearly dovish” for BoE policy. Governor Andrew Bailey isn’t ruling out a rate cut in March, but says he needs to see firmer evidence first. Reuters
UK politics is set to stir things up beyond just interest rates. Finance minister Rachel Reeves will present a budget update on March 3, paired with the latest forecasts from the Office for Budget Responsibility.
Banks are now looking to March 19, when the Bank of England drops its policy decision and releases the MPC summary and minutes.
The flipside: Lloyds still faces possible charges from the motor finance mis-selling mess, and it’s already boosted related provisions before.
Thursday’s CBI survey pointed to improved mood among business and professional services, while sentiment for consumer-facing services lagged. That divide could weigh on credit appetite if households keep holding back.
Traders eyeing Lloyds shares are set to keep tabs on fresh buyback news, with the March 3 OBR forecast package next on the docket. After that, the Bank of England’s March 19 call looms.
