So far this year shares in banking group Lloyds (LLOY) have closed the gap which opened up between it and peers like Barclays (BARC) and NatWest (NWG) in 2024.

That the stock has advanced year-to-date is even more impressive when you consider the company has significant exposure to the ongoing motor finance mis-selling scandal.

While this remains a source of uncertainty, elsewhere the business is very much firing on all cylinders, as was evident in the company’s fourth-quarter and full-year results on 20 February.

While the headline numbers were a touch disappointing, the outlook was brighter, with the bank committed to returning excess cash, including a 15% increase in the total ordinary 2024 dividend to 3.17p per share and a new £1.7 billion buyback.

There was a promise of more to come, too, as Nunn forecast the bank would generate a return on tangible equity of 13.5% in 2025 and greater than 15% in 2026, meaning it will generate more excess capital than expected, which could be set aside for further buybacks. 

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