Lloyds Banking Group kicks off £1bn share buyback programme

Rebecca Smith
The bank announced its plans last month (Source: Getty)

Lloyds Banking Group this morning launched its £1bn share buyback programme, unveiled at its full-year results last month.

The bank said it had entered into an agreement with UBS to carry out the share buyback programme on its behalf - and to make trading decisions under the programme independently.

The programme starts today and will wrap up no later than 4 February 2019, with the maximum consideration £1bn.

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Lloyds said: "The sole purpose of the programme is to reduce the ordinary share capital of the company."

Last month, the bank announced a new £3bn investment in a three-year strategy of upgrading its digital prowess as it seeks to cut costs and prepare for competition. It also announced a rise in profits, along with the £1bn share buyback.

It wants to cut costs below £8bn by 2020, translating into cuts of £180m compared to 2017, while splashing out more on training and digitising the bank's back office.

At the firm's full-year results, chief executive Antonio Horta-Osorio called 2017 "a landmark year for the group".

"In May the UK government completed the sell-down of its shares and the group returned to full private ownership," he said. "This was enabled by the significant strategic progress and strong financial performance in recent years and was down to the hard work of all our people and I thank them for it."

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