--- title: "Lloyds Banking Group Posts Pretax Profit Jump, Expands Buyback — Update" type: "News" locale: "en" url: "https://longbridge.com/en/news/294318903.md" description: "Lloyds Banking Group reported a Q2 pretax profit of £2.27 billion, beating estimates, and announced a new 'Accelerate 2030' strategy targeting >18% return on tangible equity by 2028. The bank launched a £1 billion share buyback alongside existing programs. Despite raising impairment charges due to geopolitical headwinds, Lloyds reaffirmed 2026 guidance and expects £2 billion in cost savings by 2030 via AI efficiency." datetime: "2026-07-30T07:23:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294318903.md) - [en](https://longbridge.com/en/news/294318903.md) - [zh-HK](https://longbridge.com/zh-HK/news/294318903.md) --- # Lloyds Banking Group Posts Pretax Profit Jump, Expands Buyback — Update By Joe Stonor Lloyds Banking Group set a new midterm growth target for a key profit metric after a sharp rise in second-quarter pretax profit, as it joined the ranks of European banks expanding their buyback programs. 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, compared with 1.99 billion pounds in the same period last year. The print was ahead of 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. Lloyds reaffirmed its guidance for 2026, including its forecast for net interest income above 14.9 billion pounds. It maintained its target for a return on tangible equity of more than 16% and for operating costs to be less than 9.9 billion pounds. The bank's new "Accelerate 2030" strategy "is built on the financial foundations of investment discipline, efficiency focus and risk management," Chief Executive Charlie Nunn said. As part of the strategy, the bank said it is targeting gross cost savings of around 2 billion pounds by 2030, partly through artificial-intelligence-driven efficiency savings. Economic headwinds caused by the U.S.-Iran war prompted the lender to increase its impairment charge to 616 million pounds for the half-year, up 40% on year. The bank expects higher unemployment and lower house prices than it did at the end of last year. Investors were on watch for an update to a U.K. regulatory probe into historical commission arrangements on car loans, for which the bank has already set aside 1.95 billion pounds. Lloyds said Thursday it hasn't put aside any further funds to cover the potential impact of the probe. Write to Joe Stonor at josephmichael.stonor@wsj.com (END) Dow Jones Newswires July 30, 2026 03:18 ET (07:18 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. ### Related Stocks - [LYG.US](https://longbridge.com/en/quote/LYG.US.md) - [LLOY.UK](https://longbridge.com/en/quote/LLOY.UK.md) - [DBK.DE](https://longbridge.com/en/quote/DBK.DE.md) - [DB.US](https://longbridge.com/en/quote/DB.US.md) - [BARC.UK](https://longbridge.com/en/quote/BARC.UK.md) - [BCS.US](https://longbridge.com/en/quote/BCS.US.md) - [03KB.DE](https://longbridge.com/en/quote/03KB.DE.md) - [DPB.DE](https://longbridge.com/en/quote/DPB.DE.md) ## Related News & Research - [Lloyds Banking Group announces availability of Lloyds Bank 2026 half-year results report](https://longbridge.com/en/news/294381896.md) - [Lloyds Banking Group publishes transcript of 2026 half-year results and strategy update presentation](https://longbridge.com/en/news/294541064.md) - [Lloyds Banking Group publishes HY 2026 investor factbook](https://longbridge.com/en/news/294311630.md) - [Lloyds Posts H1 Statutory Profit Before Tax Of £4.3 Billion](https://longbridge.com/en/news/294315462.md) - [REG - Lloyds Bank Plc Lloyds Banking Group - Publication of a Supplementary Prospectus](https://longbridge.com/en/news/294511133.md)