London, Feb 1, 2026, 08:14 GMT — Markets have shut for the day.
- Shares in Lloyds ended Friday at 108.95p, marking a 3.3% rise.
- On Friday, the bank kicked off a £1.75 billion share buyback programme.
- Monday’s trading will spotlight the buyback pace, with the annual report set for release on Feb. 18.
Lloyds shares closed Friday at 108.95 pence, gaining 3.32% to mark their highest finish this year. Volume hit around 158 million shares, matching the stock’s usual active trading levels. (Investing)
The jump followed the bank’s report of a 12% increase in annual profit and a raised profitability target, backed by a £1.75 billion buyback plan. Chief executive Charlie Nunn credited the bank’s “business momentum and strategic delivery” for the upgraded guidance. He also noted a stronger push into generative AI as the bank eyes additional profit in 2026. Rival UK lenders including HSBC, Barclays, and NatWest Group are set to report later this season, keeping attention on the sector. (Reuters)
The key point for Monday is the buyback itself. When a company buys back its own shares, it usually cancels them to reduce the number of shares outstanding. Lloyds announced it kicked off the programme on Friday, with Goldman Sachs International handling the purchases, aiming to wrap it up by Dec. 31 at the latest. The bank also clarified there will be no buybacks in the U.S. or involving its ADRs. The programme remains subject to ongoing approval by the Prudential Regulation Authority. (Investegate)
Lloyds disclosed in a separate filing that it purchased 10 million ordinary shares on Jan. 30, with prices ranging from 107.35 pence to 108.70 pence. The volume-weighted average price paid was 108.1041 pence per share, according to the filing. The bank plans to cancel the shares. (Investegate)
But there’s a snag. Lloyds set aside £968 million for remediation in 2025, with £800 million linked to motor finance commission issues. Investors remain unsure how big the final tab might be across the sector. A weaker economy could push credit losses higher, while falling rates would squeeze bank margins—just as the buyback aims to support the share price. (Lloyds Banking Group)
Economic signals remain mixed. A Lloyds survey released Friday found business confidence dipped in January, though firms grew more optimistic about their own activity and hiring plans. “Firms are reporting confidence in their trading prospects at the start of the year, despite a slight softening of wider economic optimism,” said Hann-Ju Ho, senior economist at Lloyds Commercial Banking. (Reuters)
Monday’s session looks set to be a bit mechanical: the broker’s buying will set the tone, but the real question is whether new money jumps in on the results or pulls back after a strong week. Bond yields and sterling will also play a role, influencing rate expectations and bank valuations.
Investors will also watch the Bank of England’s next policy announcement, set for Feb. 5. These rate decisions are crucial for lenders since they directly impact loan pricing and deposit rates. (Bank of England)
For Lloyds, the next key date is the release of its annual report and accounts on Feb. 18. The bank also has an ex-dividend date set for Apr. 9, followed by an interim management statement due Apr. 29. (Lloyds Banking Group)
