Lloyds Banking Group and Smiths Group Execute Significant Share Buybacks, Aiming for Total Cancellation

Two behemoths of UK industry, Lloyds Banking Group and Smiths Group PLC, have recently engaged in major share buyback programs. Both have stated their plans to cancel the shares, potentially enhancing their capital structures.

Lloyds Banking Group made the grand announcement on 23rd May 2025, revealing that it had procured about 12,475,558 of its ordinary shares from Morgan Stanley & Co. International. The company had previously issued instructions to the broker for this operation back on 20th February 2025. It’s a sizeable chunk of their equity that, once cancelled, could bolster the value for remaining shareholders. The decision manifests part of the banking group’s ongoing share buyback scheme.

These bold moves from two titans of UK business come amidst a broader trend of share buybacks among global corporations. Share buyback programs can serve a variety of purposes: they can potentially raise earnings per share, offset dilution from stock compensation, implement tax-efficient distributions, or simply put idle cash to use. In the case of Lloyds Banking Group and Smiths Group, cancellation of shares seems to be the primary goal, demonstrating confidence in their financial solidity and long-term viability.

Going forward, the market will be watching closely for the outcomes of these buybacks. Which other companies will follow suit in this path of enhancing capital structure? One thing is certain: this financial spectacle has become a hot topic across the UK finance sector.