London, Feb 13, 2026, 07:42 GMT — Premarket
- Lloyds Banking Group slipped 0.63% on Thursday, closing at 102.40 pence. (Investing)
- The bank reported it repurchased 10 million shares on Feb. 12, paying a volume-weighted average of 104.2224 pence per share, with plans to cancel the lot. (Investegate)
- Lloyds has penciled in Feb. 13 for the release of its 2025 annual report and accounts, according to its financial calendar. (Lloyds Banking Group)
Lloyds Banking Group (LLOY.L) faces Friday’s London session with investors keeping an eye on its latest buyback update, while shifting rate expectations and a softer macro backdrop complicate the picture.
Lloyds stands in for UK consumer credit—so when traders adjust their expectations for rates, bank shares move fast.
Net interest margin, the difference between what a bank makes on loans and what it pays out on deposits, is where rates hit hardest. Once rate cuts are on the horizon, that margin tends to shrink—even if loan demand doesn’t falter.
UK stocks slipped Thursday, tracking a cautious tone from the U.S., where Wall Street was rattled by fresh selling tied to concerns over AI, according to Reuters. (Reuters)
UK GDP edged up just 0.1% in the fourth quarter, coming in below the 0.2% analysts had penciled in. Business investment? Down nearly 3%—the sharpest fall since early 2021. Luke Bartholomew, Aberdeen’s deputy chief economist, pointed to “tentative signs” of brighter sentiment after last year’s budget, but said that fresh political turbulence could easily wipe that out. RSM economist Thomas Pugh flagged the steep drop in investment, tying it to budget uncertainty that’s made firms hesitant to spend. (Investing.com)
The buyback, at least on paper, props up the narrative: with fewer shares in play, earnings per share may edge higher assuming profits don’t slip. But it won’t prevent the stock from tracking the broader market.
UK banks all face scrutiny on mortgage rates, deposit battles, and signs of household strain—especially if growth remains sluggish. Those are the pressure points investors have on their radar right now.
Still, the risks are clear enough. If rate cuts come harder and faster, banks could see their income squeezed. Add in a softer economy, and suddenly impairments—those loan-loss provisions—start climbing. It’s a double hit, with loan demand likely taking a knock too.
Lloyds faces a disclosure-heavy stretch in the coming hours. Investors are set to comb through the annual report, watching for tweaks to capital assumptions, shifts in risk wording, and any fresh signals about the bank’s outlook for the year ahead.
Looking ahead, the focus shifts to the Bank of England. Its explainer lists the Bank Rate at 3.75%, with the next policy decision coming up March 19. (Bank of England)
