Lloyds Banking Group is scheduled to report results for the second quarter on Thursday. Here is what you need to know.
PRE-TAX PROFIT FORECAST: The U.K. bank is expected to report second-quarter pre-tax profit of 2.10 billion pounds ($2.79 billion), according to consensus estimates compiled by Lloyds. The group posted a pre-tax profit of 1.99 billion pounds over the same period in 2025.
NET INTEREST INCOME: Analysts expect Lloyds to report net interest income of 3.70 billion pounds for the second quarter, according to the same consensus. If realized, the print would be a more than 10% increase on last year's 3.36 billion pounds.
Shares in Lloyds jumped by over 20% in the second quarter following weakness earlier in the year. The stock is now up close to 15% so far this year.
WHAT TO WATCH:
--STRATEGY UPDATE: Lloyds will provide a strategic update alongside its second quarter results. The bank's management will likely provide new financial targets for 2028 and 2030, Citi analysts said. The analysts expect company guidance to be conservative, targeting a return on tangible equity--a key metric for bank earnings--of above 18% in 2028 and above 20% in 2030.
--BUYBACK: Deutsche Bank, UBS and Barclays all announced new buybacks in their respective earnings this week, and investors will be looking to see if Lloyds does the same. Citi analysts expect the bank to announce a 1.75 billion pound buyback plan Thursday. "Investors have become accustomed to regular share buybacks and dividend hikes," AJ Bell analysts said.
--MOTOR FINANCE PROVISION: Lloyds has already set aside 1.95 billion pounds for costs related to a probe into historical commission arrangements on car loans. Investors will look for further clarity on the regulator's redress scheme and the impact on the company, AJ Bell said.
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