LONDON, July 24, 2026, 11:53 BST — Market open
- Lloyds Banking Group LON:LLOY gained 0.9%, reaching 113.42 pence. The FTSE 100 was up 0.3%.
- Latest buyback figures indicate that for each £1 billion, 13.7% fewer shares were retired compared to the first-quarter average.
Lloyds Banking Group LON:LLOY gained 0.9% as of 11:44 BST on Friday, leaving the shares trading 2.2% under their 52-week peak.
The disclosed buyback on Thursday is more significant than the gain itself, as it demonstrated that the rally has made repurchases less efficient.
Lloyds acquired seven million shares at a volume-weighted price of 113.2056 pence and plans to cancel them.
The price stood 15.9% higher than the first-quarter average of 97.7 pence. Fewer shares are now retired per pound.
| Buyback measure | Q1 average price | July 23 purchase | Change |
|---|---|---|---|
| Price per share | 97.7p | 113.2056p | +15.9% |
| Shares retired per £1 billion | 1.024 billion | 883 million | −13.7% |
| Sample cost to acquire seven million shares | £6.84 million | £7.92 million | +£1.08 million |
Based on purchase prices reported by the company.
At Thursday’s share price, £1 billion could buy back approximately 883 million shares. By comparison, the Q1 average would have bought back 1.024 billion shares. The difference is about 140 million shares.
This is significant as capital return remains central to the Lloyds investment thesis. Starting in mid-2026, the board intends to review additional distributions twice a year. The group continues to aim for a CET1 capital ratio close to 13% at the end of the year.
The valuation of the stock increases the strain. Lloyds was priced at 14.77 times its trailing earnings, while NatWest Group LON:NWG traded at a multiple of 9.66. Barclays LON:BARC was at 12.08 times.
Lloyds traded at a 36% premium over the group’s simple average. The comparison is not exact, as the banks operate with differing business mixes.
Shares of peers climbed on Friday. NatWest increased by 0.7% and Barclays was up 0.6%. The FTSE 100 rose 0.3% to around 10,673.
Lloyds saw its shares drop 2.1% on Thursday, outpacing a 1.3% decline for UK banks overall. Oil prices climbed above $100, and yields on government bonds increased.
Lloyds continues to show strong earnings momentum. Pretax profit for the first quarter increased by 33% to reach £2.03 billion, surpassing the analyst consensus of £1.84 billion.
Net interest income on an underlying basis increased by 8% to £3.57 billion. Return on tangible equity hit 17%. Lloyds maintained its full-year return guidance at above 16%.
Chief Executive Charlie Nunn stated in April: “We look forward to presenting our new strategy alongside the half-year results.” The announcement is expected on July 30. Investegate
Lloyds targets roughly £2 billion in additional strategic revenue by the end of 2026. Investors are set to seek the next source of earnings growth.
The market’s response on July 30 will hinge on revenue, expenses, and capital allocation. With share prices at present levels, increased buybacks result in lower cancellation impact per pound.
Risks persist. Fresh pressure from oil and yields could impact borrowers. Compression in mortgage margins may counteract benefits from structural hedges. A disappointing update could threaten the stock’s premium over peers.
Share buybacks continue to lower the number of outstanding shares. However, their impact has become more limited.
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