LONDON, July 2, 2026, 13:05 BST
- Lloyds Banking Group plc (LON:LLOY) added 0.67% to finish at 112.90p in London trading. The FTSE 100 (INDEXFTSE:UKX) gained 0.44%.
- The FCA has partly suspended its motor-finance redress scheme following legal action. This puts payments on hold for now though the scheme itself stays in place.
- Lloyds has booked a £1.95 billion charge for motor-finance, close to 26% of the FCA’s £7.5 billion industry compensation estimate. That leaves questions about the timing of capital returns ahead of results on July 30.
Lloyds Banking Group plc (LON:LLOY) shares gained in London Thursday after a tribunal halt slowed parts of the UK’s motor-finance compensation scheme. The move gives the bank extra time on payouts, though the scale of the risk is unchanged.
The stock gained 0.67% to 112.90 pence by 12:47 BST, with volume showing 31.07 million shares traded. The FTSE 100 (INDEXFTSE:UKX) rose 0.44% to 10,524.09, using delayed data. The London Stock Exchange was open for its regular session at the 13:05 BST mark; normal hours are 0800 to 1630 local time.
| Instrument | Price | Day change | One-year change | Data time |
|---|---|---|---|---|
| Lloyds Banking Group (LON:LLOY) | 112.90p | up 0.67% | up 53.52% over 12 months | 12:47 BST |
| Barclays (LON:BARC) | 517.10p | gained 0.41% | up 58.74% since last year | 12:12 BST |
| NatWest Group (LON:NWG) | 673.40p | fell 0.91% | up 42.13% year on year | 12:19 BST |
| HSBC Holdings (LON:HSBA) | 1,434.20p | down 0.43% | rose 62.00% over 12 months | 12:48 BST |
| FTSE 100 (INDEXFTSE:UKX) | 10,524.09 | added 0.44% | up 19.94% since this time last year | 12:25 BST |
Table data are delayed. Figures come from LSEG market feeds, according to .
Split over time and amount in focus as UK’s FCA says parts of the motor finance redress scheme are on hold. Four parties mounted legal challenges, and FCA said some elements are suspended pending court action. Reuters said firms can keep working on complaints and preparing cases, but no compensation payments will go out until legal questions are settled. A hearing could happen in December or February. If the scheme stands, payments may come in 2027, but a revised setup would likely push payouts to 2028 or later.
The delay gives some cushion for near-term capital planning, but the conduct overhang remains. Lloyds is still holding a £1.95 billion provision for motor-finance redress. The FCA’s scheme, covering deals from 2007 to 2024, is meant to pay back customers who were treated unfairly and could return about £7.5 billion to consumers, according to the regulator.
| Measure | Value | Lloyds read-across |
|---|---|---|
| FCA industry compensation estimate | £7.5 bln | Scheme baseline |
| Lloyds motor-finance provision | £1.95 bln | 26% of FCA number |
| Lloyds 2025 pretax profit | £6.7 bln | Provision comes to 29% of 2025 profit |
| Lloyds Q1 2026 pretax profit | £2.0 bln | Provision matches around one quarter |
Lloyds’ numbers are based on its reported provision, the FCA scheme figure, results for 2025 and the Q1 2026 result.
Lloyds carries the largest exposure among listed UK banks when it comes to this measure. Sharecast, picked up on Lloyds’ own investment news site, reported Lloyds set aside £1.95 billion, with Barclays at £325 million and Close Brothers Group (LON:CBG) at £300 million. That leaves Lloyds with about six times Barclays’ provision and more than six times what Close Brothers put by.
Lloyds is already trading close to analyst targets. Sixteen analysts tracked by Investors Chronicle had a 12-month median forecast at 124p as of June 25, about 10.6% above the last price on the same page. Lloyds has gained 53.52% over one year, so much of the domestic-bank recovery seems priced in.
Lloyds said Wednesday it will make Halifax branches Lloyds, putting the Lloyds name out front in England, Wales and Northern Ireland. Bank of Scotland keeps its spot as the lead brand in Scotland. There aren’t any direct customer changes or job cuts from this.
“As Halifax becomes Lloyds, our Halifax customers keep everything they have now – same app design, same people in the branch, even the same sort code and account number,” Jas Singh, Lloyds’ CEO for Consumer Relationships, said in the company statement. Lloyds Banking Group
Lloyds CEO Charlie Nunn stuck to the bank’s outlook in first-quarter numbers, saying the company is “confident” for the year and would lay out a new strategy at the half-year. Lloyds posted a £2.0 billion pretax profit, return on tangible equity of 17.0%, and a CET1 of 13.4%. Guidance for 2026 stays, with ROTE above 16% and capital generation over 200 basis points. EQS News
Lloyds has its next test set for July 30, when the bank plans to report half-year numbers and give a strategy update.
