Lloyds Banking Group’s shares have risen almost 40 per cent over the past year as the industry’s re-rating has continued on the back of higher-for-longer interest rates, attractive capital returns and successful structural hedges. The high street lender’s investors have seen their stakes climb more than 155 per cent over five years but are now weighing what the bank’s new growth plan could mean for future performance.

Alongside Lloyds’ half-year results at the end of July, which announced a new £1bn share buyback and 30 per cent increase in the interim dividend alongside 23 per cent growth in pre-tax profit, chief executive Charlie Nunn set out his Accelerate 2030 strategy. He is targeting £2bn of gross cost savings between 2027 and 2030, helped by AI, while expanding the bank’s footprint in areas like wealth management and digital assets. Nunn is aiming for a return on tangible equity of 20 per cent by 2030, up from just under 13 per cent in 2025.

Elsewhere on the board, chief financial officer William Chalmers took advantage of Lloyds’ share price growth when he banked £10.2mn through the sale of 9.1mn shares on August 27. Lloyds said Chalmers, who joined from Morgan Stanley in 2019, continues to exceed the group’s shareholding policy requirements. Next up for Lloyds investors is a third-quarter update on October 29.