London, Feb 19, 2026, 09:22 GMT — Regular session
- Shares of Lloyds ticked higher at the open in London, building on Wednesday’s firm finish.
- The bank reported another round of share repurchases as part of its current buyback program.
- The Bank of England’s March rate call is on traders’ radar, as is Lloyds’ upcoming trading update.
Shares of Lloyds Banking Group (LLOY.L) crept up 0.3% to 104.95 pence by 0907 GMT on Thursday, having closed at 104.60 pence the previous day.
A day earlier, the FTSE 100 notched an all-time closing high, with softer UK inflation figures fueling bets the Bank of England might lower rates by March. “Investors keep piling into UK assets,” said Axel Rudolph, senior financial analyst at IG. Reuters
Lloyds faces a direct link between its earnings and UK interest rates, as well as mortgage pricing. If rate cuts come through more quickly, borrowers and the housing market could get a boost. But there’s a catch: banks often see their lending margins pinched when rates drop fast.
Lloyds didn’t pause its buyback, snapping up 5 million ordinary shares Wednesday via Goldman Sachs International. Prices landed between 103.60 pence and 105.25 pence per share, with the bank planning to cancel those shares.
There’s been some deal action, though on the modest side. Chesnara has agreed to acquire Scottish Widows Europe SA from Lloyds’ Scottish Widows arm for €110 million in cash. The transaction’s slated to close near the end of 2026, pending regulatory sign-off. “We are pleased that another major financial institution, Lloyds Banking Group, has chosen us to look after their policyholders,” Chesnara CEO Steve Murray said. Investegate
Lloyds is moving ahead with the buyback as it ramps up capital returns following a 12% jump in annual pre-tax profit for 2025. The bank also unveiled a fresh £1.75 billion share repurchase plan.
The rate outlook isn’t one-way traffic here. If the Bank Rate drops more quickly than forecast, net interest income could take a hit. Meanwhile, uncertainty hangs over the UK motor finance redress scheme, which keeps provisions and capital planning in flux.
The next big macro hurdle for UK banks lands with the Bank of England’s policy call, set for March 19.
Lloyds has its Q1 interim management statement slated for April 29, marking the next item on its calendar.
