LONDON, June 22, 2026, 10:06 BST
- Lloyds slipped 0.05% to 105.05p. Shares swung between 104.65p and 105.55p today.
- Sterling dipped and gilt yields rose after Keir Starmer said he will step down. Markets also saw Lloyds launch an AI hiring drive, giving some investors a stock-specific offset.
- Lloyds faces its next big test on July 30 with half-year numbers out the same day the Bank of England reveals its next interest-rate move.
Lloyds Banking Group shares (LSE: LLOY) were steady at 105.05p as of 09:55 BST on Monday, almost flat, down 0.05% since Friday’s close. The stock traded between 104.65p and 105.55p. A weaker sterling and higher gilt yields followed Prime Minister Keir Starmer’s resignation, but Lloyds has also started a big AI hiring drive as it comes off a strong first quarter. For traders, it’s notable the political news didn’t push Lloyds under Friday’s lows.
That steady close in LSE: LLOY covers up a lot of back-and-forth during the session. Multiply Monday’s 0.90p swing by Lloyds’ 58.29 billion shares and the paper move is around £525 million. Still, the stock finished just 0.05p lower, cutting only about £29 million off its value. Markets took in the political headlines but didn’t pick a direction.
The first market read on the news wasn’t great. Sterling slipped 0.27% to $1.3202. The UK 10-year gilt yield was up a basis point at 4.85%. Domestically oriented mid-caps lagged as traders considered what Starmer’s move might mean for policy and power. Lloyds has a lot on the line with British consumers and companies. Higher yields help asset returns, but drawn-out uncertainty could sap loan demand and bring new funding worries.
Lloyds opened Monday with stronger earnings protection than last year. First-quarter underlying net interest income rose 8% to £3.57 billion. The banking net interest margin hit 3.17%. The lender expects net interest income of more than £14.9 billion and says it’s targeting a return on tangible equity above 16% in 2026. The Bank of England’s 7–2 decision to keep Bank Rate at 3.75% shows that the rate-cut pace some investors worried about hasn’t come through.
AI dominated Monday’s company headlines. Lloyds said it’s hiring for nearly 300 agentic-AI roles right now, covering engineering, data science, responsible-AI, and product management. The bank is looking to add more than 1,000 AI-related roles in 2026. Its AI financial assistant has already reached more than 500,000 Bank of Scotland customers. Sharon Doherty, Lloyds’ chief people and places officer, said the tech should bring “real benefit in day-to-day roles.” Lloyds Banking Group
The question is how soon those hires show up in profit. Lloyds is aiming for over £100 million of incremental AI-related P&L benefit this year. That’s just above 1% of its operating-cost ceiling of £9.9 billion. Shares at 105.05p trade at about 1.81 times the March tangible net asset value of 57.9p per share. With that pricing, there’s less room for AI to stay a showpiece—investors will want to see actual cost cuts, fraud drops or more digital sales.
A second update from Lloyds offered a more upbeat tone for commercial clients. The latest Business Barometer showed 84% of UK businesses in the survey said they could handle economic shocks, with 57% expecting growth this year. Amanda Murphy, who leads Lloyds’ business and commercial banking, called the results “not just resilience, but decisive action.” But the survey ran from April 30 to May 18—before this week’s political fallout—so it’s a snapshot from before Monday. Lloyds Banking Group
The key shift from Friday was in the story, not in Lloyds’ official earnings forecast. Statutory pre-tax profit for the latest quarter landed at £2.03 billion, a 33% jump. Return on tangible equity stood at 17.0%. Asset-quality ratio was 25 basis points. Loans and advances grew by £5.1 billion in the quarter. With those results, it’s clear why investors see 105p as a point to watch for earnings, not as a trigger for a sudden sell-off.
The bear case is still on the table but mostly centered on a few risks. A leadership contest hinting at looser fiscal policy could mean gilt yields stay high, putting more pressure on UK borrowers and funding, and Lloyds flags problems still looming with motor-finance redress, operating costs, and legal issues. On the chart, if shares close clearly below 104.65p, Friday’s 104.00p low is the next level, with the June 16 low at 102.65p after that. Bulls need a push above 105.55p to break the downside setup.
The next big read comes on July 30. Lloyds is set to report half-year results and drop a strategy update the same day the Bank of England sets rates. Investors will watch both numbers and the BoE call for signals on margins, credit, costs and policy. That combo could show if Lloyds can hold the 105p level, or if that’s just resistance for now.
This article is informational and isn’t investment advice, an offer, or a buy or sell call on any security. Share prices go down as well as up. Investors can lose part or all of their money.
