LONDON, June 29, 2026, 11:04 BST
- Lloyds Banking Group plc (LON:LLOY) traded at 109.30p on the bid, 109.35p on the offer, showing a gain of 0.11% in late-morning delayed action.
- UK mortgage approvals dropped to 56,200 in May, down from 66,000 in April, hitting the lowest level since December 2023, according to the .
- Lloyds had a UK mortgage book of £324.7 billion at the end of March, making up around 66.8% of its underlying customer loans.
- Lloyds bought back shares at an average 109.37p on June 25-26, close to Monday’s price.
Lloyds Banking Group plc (LON:LLOY) shares saw a slight gain in late-morning trade in London on Monday. The move came as new data showed UK mortgage approvals dropped about 15% in May, raising questions for Lloyds, given its heavy reliance on home loans.
Lloyds traded up on delayed UK quotes, with two other local bank stocks down.
| Company | Late-morning sell/buy quote | Change | Market value | P/E | Dividend yield |
|---|---|---|---|---|---|
| Lloyds Banking Group plc (LON:LLOY) | 109.30p / 109.35p | up 0.11% | £63.60 bln | 14.37 | 3.34% |
| Barclays PLC (LON:BARC) | 508.60p / 508.80p | down 0.37% | £68.68 bln | 11.89 | 1.67% |
| NatWest Group PLC (LON:NWG) | 654.40p / 654.80p | down 0.27% | £52.10 bln | 9.50 | 4.9% |
AJ Bell put Lloyds volume at 15.3 million shares, much higher than Barclays at 5.0 million and NatWest at 1.7 million. Share prices were delayed by at least 15 minutes.
The Bank of England reported a drop in net mortgage approvals for house purchase to 56,200 in May, down from 66,000 in April. That’s lower than the six-month average of 63,300. Net mortgage lending also slipped, hitting £2.9 billion compared with £4.4 billion the month before. The effective rate on new mortgages climbed to 4.22% from 4.08%.
Simon Gammon, managing partner at Knight Frank Finance, said May’s numbers suggest more borrowers are holding off. He cited inflation fears and low consumer confidence. He also said a U.S.-Iran deal, if it lasts, could be good news for mortgage rates.
The numbers hit Lloyds’ balance sheet directly.
| Data point | Latest figure | Investor read-through |
|---|---|---|
| UK mortgage approvals | 56,200 in May, down from 66,000 April | New home loans are slowing |
| Net mortgage lending | £2.9 bln for May, was £4.4 bln in April | Less borrowing finished |
| New mortgage effective rate | 4.22% against 4.08% | Rates up, lending drops |
| Lloyds UK mortgages | £324.7 bln at March 31 | Roughly two-thirds of loans to customers |
| Lloyds banking net interest margin | 3.17% in Q1 | Margin up 14 bps from last year |
| Lloyds CET1 ratio | 13.4% in Q1 | Sits above around 13% goal for end-2026 |
Lloyds said underlying loans and advances to customers came in at £486.2 billion at the end of March, with £324.7 billion in UK mortgages and £16.8 billion in UK motor finance. Q1 underlying net interest income hit £3.6 billion, an 8% rise from a year ago. The bank kept its 2026 target for underlying net interest income above £14.9 billion. CEO Charlie Nunn said he was “confident in our delivery for the year ahead”.
Lloyds’ buyback is still in play. According to the latest RNS, the bank picked up 5 million shares on June 26 for a volume-weighted average of 109.2411p. On June 25, it did 5 million more at 109.5000p. That puts the average at 109.37p, nearly matching Monday’s 109.35p buy quote.
This stands out since Lloyds shares are trading right around the price where the bank has been repurchasing stock. According to the latest RNS, the bought-back shares will be cancelled under an ongoing plan first laid out with Goldman Sachs International back in January.
Rate calls are muddier. Bank of America Corp’s (NYSE:BAC) BofA Global Research cut its forecast for Bank of England hikes last week. “It remains a close call,” BofA said, but Reuters, citing LSEG data, shows at least one 25-basis-point hike is still priced in by markets for year-end. Reuters
Berenberg’s Michael Christodoulou began covering Lloyds last week with a “hold” and set the target at 117p. He put “buy” on both Barclays and NatWest. Christodoulou’s note said Lloyds offers “limited room for positive surprise at current valuations”. Investing
LSEG figures from Investors Chronicle show the 12-month median target from 16 analysts at 122p, with the highest at 130p and the lowest at 91p. Lloyds is set to report earnings July 30, and the bank has said it expects to lay out a new strategy with its half-year numbers.
