Lloyds Banking Group Posts Higher Pretax Profit, Expands Buyback

By Joe Stonor

Lloyds Banking Group set a target to grow a key profit metric by 2030 as it posted a rise in second-quarter pretax profit and increased its buyback program.

London-listed Lloyds on Thursday said it is targeting return on tangible equity greater than 18% in 2028, and around 20% in 2030, as part of a new strategy. The metric was 17% in the second quarter.

The group--which is the U.K.'s largest mortgage provider--announced a share buyback worth up to 1 billion pounds ($1.34 billion), joining Deutsche Bank, U.K. peer Barclays and others in expanding their capital returns to shareholders this week. The buyback is in addition to a 1.75 billion-pound program outlined at its full-year 2025 results.

Pretax profit for the quarter was 2.27 billion pounds, up from 1.99 billion pounds in the same period last year. The print was above a company-compiled consensus of 2.10 billion pounds.

Underlying net interest income--the difference between what banks make on loans and interest paid out to depositors--rose to 3.71 billion pounds, up from 3.36 billion pounds in the second quarter of 2025.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

July 30, 2026 02:37 ET (06:37 GMT)