LONDON, June 26, 2026, 12:02 BST
- Lloyds was down 0.09% at 109.95p by late morning in London. The FTSE 100 slipped about 0.75%.
- Lloyds bought 5 million shares back at a volume-weighted average of 109.5p, according to a filing from June 25. The price was close to where the shares traded in the market.
- The stock trades around 1.9 times Q1 tangible net asset value. Main cost risk comes from motor-finance redress.
Lloyds Banking Group plc (LON:LLOY) shares barely moved in London on Friday. Still, the price stands out. The company is running buybacks at roughly 110p, near a 52-week high. That’s close to double the latest tangible net asset value.
The shares traded at 109.95p, slipping 0.09% at 1155 BST. Google Finance data showed a 52-week high of 114.60p and a low of 72.85p. The stock is sitting about 4.1% below that top and stands near 51% above its 52-week low. The FTSE 100 fell 0.75% at 1139 BST.
Lloyds moved up 2.13% to £1.10 on Thursday, outpacing the FTSE 100’s 0.65% gain. Volume came in soft at 140.3 million shares, missing the 50-day average of 179.3 million.
Lloyds bought back 5 million ordinary shares on June 25, paying between 107.45p and 110.30p per share, with a volume-weighted average price of 109.5p, according to a U.S. SEC filing. The bank used Goldman Sachs International for the trade and plans to cancel the shares.
Lloyds picked up £5.5 million of shares, or about 3.6% of Thursday’s reported volume. The buy isn’t large enough alone to explain the rally. Lloyds is still retiring shares near the top of its one-year range, instead of sticking to cheaper prices.
A 5 million-share buyback day cuts Lloyds’ 58.27 billion share count by just 0.009%. At that pace, it would take 117 trading days to remove 1% of shares. The share count moves slow, but the market sees the buyback signal quickly.
Lloyds is at 109.95p, putting it around 1.90 times its Q1 tangible net asset value of 57.9p a share. That price looks steep for a UK bank unless returns keep up and motor-finance costs don’t go up again.
Lloyds’ numbers keep the earnings story there. First-quarter statutory profit before tax landed at £2.0 billion, with net interest income at £3.6 billion—an 8% rise year-over-year. Return on tangible equity hit 17.0%. The bank guided for 2026 net interest income above £14.9 billion and said RoTE should come in over 16%.
Lloyds told investors on Friday its fund-finance setup with Legal & General Group Plc (LON:LGEN) has cleared £1.5 billion in participations since starting up in December 2022. The structure uses Lloyds’ deal flow and L&G money to back fund finance lines for private-market clients.
Lloyds managing director for financial sponsors Jill Wilson said the bank is “combining our origination capabilities with institutional capital to deliver funding at scale.” L&G Asset Management’s alternative debt head Matthew Taylor said the partnership brings L&G “high-quality, short-duration assets.” Lloyds Banking Group
The fund-finance number looks minor against Lloyds’ £486.2 billion customer loans, but it’s an issue now since the stock isn’t priced as a bargain turnaround play. Investors expect steady profits, more straightforward capital returns, and growth businesses that don’t pile on big new balance-sheet risk.
The motor-finance issue is capping that price. The FCA’s scheme, which targets customers treated unfairly from 2007 to 2024, is set to return £7.5 billion to consumers. Millions of claims are expected to be wrapped up in 2026, most by the end of 2027. Lloyds said in Q1 it kept its motor-finance provision unchanged after the final rules, but the setting is still scenario-based with ongoing uncertainty over response rates, costs, legal challenges, and litigation.
Lloyds CEO Charlie Nunn plans to unveil a new strategy when the bank releases its half-year results in July, Reuters reported in April. The existing 2022-2026 plan is coming to a close.
