LONDON, June 30, 2026, 12:02 BST
- Lloyds Banking Group rose around 2.3%, outpacing the FTSE 100’s 1.1% increase.
- UK mortgage approvals dropped to 56,200 in May, Bank of England data showed. That’s less than the average for the last six months.
- Lloyds repurchased 5 million shares on Monday, paying a volume-weighted average price of 109.1711p.
- The key thing for the stock right now is if capital returns and margin guidance will be enough to counter the softer UK loan numbers.
Lloyds Banking Group plc (LON:LLOY) outperformed the FTSE 100 (INDEXFTSE:UKX) in late London trading on Tuesday. The move came as new UK credit and business-confidence numbers showed weaker demand in housing and small business segments, both key for the bank. At 1202 BST, London stayed inside regular hours, with trading scheduled from 0800 to 1630.
Lloyds traded at 111.25p to sell and 111.35p to buy, up 2.50p or 2.30%. Hargreaves Lansdown data showed the FTSE 100 up 1.10%. For shareholders, the main thing is Lloyds is attracting bids because of capital return, not from signs of stronger UK data.
Lloyds said it bought 5 million ordinary shares on June 29, paying between 108.45p and 109.85p per share. The volume-weighted average was 109.1711p. Lloyds plans to cancel these shares. The total cost, using the VWAP, was about 5.46 million pounds. With 58.26 billion shares outstanding, the buyback cut the share count by around 0.009%.
Lloyds was up, beating other big UK banks and the main blue-chip index in delayed London quotes:
| Stock/index | Latest delayed quote | Day move |
|---|---|---|
| Lloyds Banking Group plc (LON:LLOY) | 111.25p | +2.25% |
| NatWest Group plc (LON:NWG) | 667.10p | +1.65% |
| HSBC Holdings plc (LON:HSBA) | 1,447.50p | +1.67% |
| Barclays plc (LON:BARC) | 511.35p | +1.21% |
| FTSE 100 (INDEXFTSE:UKX) | 10,599.25 | +1.10% |
Latest macro data turned weaker. The Bank of England said on Monday net mortgage approvals dropped to 56,200 in May, down from 66,000 in April and below the six-month average of 63,300. Remortgage approvals also slipped, dropping to 33,300 from 51,200. Lloyds’ business survey, cited by Reuters on Tuesday, showed confidence fell by 3 points to +44, under the 12-month average of +47.
| UK domestic signal | Latest reading | Prior or benchmark | Read-through for Lloyds |
|---|---|---|---|
| Mortgage approvals | 56,200 | 66,000 in April | Future mortgage volumes down |
| Remortgage approvals | 33,300 | 51,200 in April | Refinancing has slowed |
| Net mortgage borrowing | £2.9 bln | £4.4 bln in April | Balances are rising slower |
| Lloyds business confidence | +44 | +47 12-month average | SME sentiment a bit softer |
| Manufacturing confidence | +33 | +46 12-month average | Weak manufacturing reading in the report |
“Cost pressures and global uncertainty continue to weigh on business confidence,” Amanda Murphy, chief executive at Lloyds Business and Commercial Banking, told Reuters. She noted international firms are feeling a bit better. That divide is playing into the stock: investors see weak domestic numbers as more of a hit to volume rather than a credit problem so far. Reuters
Lloyds is more exposed to the UK housing market than HSBC or Barclays. In its 2025 results transcript, Lloyds said mortgages rose by 10.8 billion pounds, up 3%, to 323 billion pounds last year. The bank said its flow share was about 19%. Mortgage repricing has helped offset hedge income, the bank said, and it expects net interest income of around 14.9 billion pounds in 2026.
The share case hangs on that income outlook, the buyback, and a return-on-tangible-equity target above 16%. Back in January, CEO Charlie Nunn pointed to “continued business momentum and strategic delivery” as the reasons why Lloyds upped its guidance. The bank also set out a 1.75 billion pound buyback and put total capital returns to shareholders for 2025 at 3.9 billion pounds. Reuters
Timing is the risk. The Bank of England said the average rate on new mortgages climbed to 4.22% in May from 4.08% in April. Higher new-loan rates can lift asset yields, but with approvals down in May, there’s less fresh business for the book. Lloyds had expected house prices to rise about 2% in both 2026 and 2027 in its base case, and set asset quality ratio guidance close to 25 basis points.
Lloyds has its next investor update set for July 30 with half-year results and a strategy update expected. Key things to track before then: June mortgage approvals, how deposits are moving, and if the daily buyback stays close to 5 million shares, after hitting that mark Monday while the shares trade near a one-year high.
