Lloyds Banking Group is planning to double the scale of its share buyback programme to £2bn ($2.59bn) next year.
However, the plans are currently at a preliminary stage, and a final move would be decided only after a board meeting in February 2019, reported the Financial Times citing sources familiar with the matter.
However, the sources also warned that the plan could be hampered by a hard Brexit.
Lloyds share buyback
Through the buyback and a higher dividend, the bank aims to return £4.5bn to its shareholders. Earlier this year, the bank completed a £1bn buyback.
According to the publication, the Lloyds share buyback move indicates the bank’s increasing confidence despite Brexit-related uncertainties.
The decision also reflects the improving outlook of the lender that was bailed out with taxpayers’ money during the financial meltdown a decade earlier, the publication noted.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn this context, the publication cited UBS analysts who have termed Lloyds as “strongly capital generative bank, operating with a cost advantage in a competitive market and with decent medium-term growth opportunities in lending, savings, investments and general insurance.”
Lloyds reported a statutory profit of £2.3bn for the first six months to 30 June 2018, a 38% surge from the previous year.
It recently also unveiled plans to trim its branch network and boost digital presence.