LONDON, July 21, 2026, 11:25 (BST)
Lloyds Banking Group LON:LLOY advanced 1.0% to 112.05 pence on Tuesday. Market consensus for the first half suggests a £1.109 billion buyback will be announced. The bank is scheduled to release its half-year results and a strategy update on July 30.
At prevailing prices, the buyback represents 1.7% of Lloyds’ market capitalisation. The anticipated 1.44p interim dividend raises the short-term capital-return yield to close to 3.0%. The 19-model aggregate remains provisional and is not official company guidance.
London’s primary exchange was operational, closing as usual at 16:30 BST. The FTSE 100 rose 0.25%, with Lloyds still trading 3.4% under its 52-week high.
Lloyds continued its share buyback activity, acquiring seven million shares on Monday at an average price of 111.4748p per share, totaling approximately £7.8 million. This average price was 0.5% lower than Tuesday’s share price. The transaction is part of the £1.75 billion buyback programme started in January.
| UK bank | Price (p) | Day move | Trailing P/E | Dividend yield | Below 52-week high |
|---|---|---|---|---|---|
| Lloyds Banking Group LON:LLOY | 111.85 | up 0.86% | 14.60x | 3.29% | 3.6% |
| NatWest Group (LON:NWG) | 668.20 | up 0.44% | 9.53x | 4.88% | 5.3% |
| Barclays LON:BARC | 515.70 | up 0.68% | 11.81x | 1.68% | 2.9% |
Sell prices from AJ Bell are shown with a minimum 15-minute delay. The gap from the high is measured based on the listed 52-week maximum.
Lloyds trades at a trailing multiple of 14.6, which is 53% higher than NatWest and 24% higher than Barclays. Expectations are elevated.
The premium is underpinned by earnings. Early 2026 consensus sees EPS at 10.1p, a 44% increase compared to 2025. Return on tangible equity is estimated at 17.2%, higher than 12.9% previously.
Lloyds is priced at 112.05p, representing a multiple of 11.1 times estimated 2026 earnings and 1.83 times projected tangible net assets per share.
For the full year, consensus forecasts are higher. Analysts expect buybacks of £3.021 billion and a dividend payout of 4.32p. Based on Tuesday’s market capitalization, the figures suggest a provisional capital-return yield of 8.5%.
Repurchases differ from cash dividends, but may bolster per-share figures by cutting the number of shares. Both figures are not company-provided guidance.
Chief Executive Charlie Nunn said in April, “We look forward to presenting our new strategy alongside the half-year results.” Lloyds is scheduled to release both on July 30. Investegate
Lloyds approaches the event buoyed by solid momentum in its reported figures. Pretax profit for the first quarter climbed 33% to £2.025 billion, with RoTE standing at 17.0%. Net interest income increased by 8%, while costs decreased by 3%.
Risks include reduced capital returns due to mortgage margin compression or new motor-finance charges. Some elements of the FCA’s proposed £9.1 billion industry scheme are still on hold amid ongoing legal challenges.
The July 30 test is limited in scope. A buyback around £1.1 billion is likely to meet forecasts, rather than exceed them. More substantial shareholder returns or improved guidance could provide a stronger catalyst.
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