Lloyds Banking Group plc shares edged higher on Thursday, tracking gains in the broader UK financial sector as London's main index closed in positive territory. According to delayed data from Hargreaves Lansdown, Lloyds was quoted at 97.80p/97.84p after the market close, up 0.94p or 0.97%. The FTSE 100 added 0.48%, ending at 10,303.9, according to Reuters, as financial stocks rebounded. However, geopolitical tensions with Iran and substantial capital expenditure on artificial intelligence kept other market segments in check.
Second buyback in two days
The bank announced another share buyback on Thursday, purchasing 5 million ordinary shares through Goldman Sachs International at a volume-weighted average price of 98.1064p per share. This follows a similar repurchase on June 10, when Lloyds also bought 5 million shares at an average price of 97.4734p. Both transactions are part of the group's ongoing buyback programme, with the broker acting on instructions issued on January 29 and made public on January 30. The shares acquired are set to be cancelled.
Branch closures continue
Investors are also focusing on the bank's ongoing branch network reduction. MoneySavingExpert reports that Lloyds, Halifax, and Bank of Scotland plan to close 247 additional branches in 2026 and 2027. This includes a fresh round announced on Wednesday: 79 more closures, comprising 31 Lloyds and 48 Halifax locations. Lloyds and Halifax have published branch closure pages detailing which sites will shut, along with a note that the Financial Conduct Authority requires LINK to review cash access for each area. Results of these reviews are pending. In some areas, Halifax is directing customers to banking hubs or community bankers, while Lloyds' list marks certain branches with plans for banking hubs or community banker visits.
Motor finance redress remains overhang
The stock continues to be affected by the UK motor finance scandal, a significant issue for domestic banks. Reuters reported this week that some car finance firms are considering compensation payments to customers. Legal challenges have delayed the Financial Conduct Authority's proposed £9.1 billion redress plan until at least 2027, if it proceeds. Lloyds was named by Reuters as one of the banks in the broader car finance sector that did not contest the scheme. The Guardian reported that the FCA warned lenders could face £6 billion in extra costs under a complaints-led approach, with claims potentially taking three years to settle. Banks affected include Lloyds Banking Group, Santander UK, and Barclays.
Governance update
Lloyds also provided a governance update. Danuta Gray is set to join the board as a non-executive director and will serve on the Responsible Business Committee from July 1, 2026. She will also become chair and non-executive director at Scottish Widows Group. Group chair Sir Robin Budenberg commented that Gray has “extensive knowledge and experience of banking and insurance.”
Financial performance context
In April, Lloyds reported a 33% jump in statutory pre-tax profit for the first quarter, reaching £2 billion, as lending income increased. The bank took a £151 million charge related to the economic impact of the Iran war. Lloyds stated it had not set aside fresh provisions for consumer redress in the first quarter.
Lloyds shares traded heavily on Thursday, with AJ Bell's delayed data showing the last close at 97.22p. The session's high reached 98.76p, with volume near 193.6 million. The year's high stands at 114.60p and the low at 72.851p, leaving Thursday's price below the February peak but well above last year's trough.
