Lloyds Banking Group’s stock surged 5.11% in pre-market trading, following the release of second-quarter results that showed a sharp rise in pretax profit and the announcement of an expanded share buyback program.

The bank reported a pretax profit of 2.27 billion pounds for the quarter, up from 1.99 billion pounds a year earlier and ahead of analyst expectations. Underlying net interest income also climbed to 3.71 billion pounds. Alongside the earnings beat, Lloyds unveiled a new “Accelerate 2030” strategy targeting a return on tangible equity of greater than 18% by 2028 and around 20% by 2030, with cost savings of 2 billion pounds partly driven by artificial intelligence.

Additionally, the group announced a share buyback worth up to 1 billion pounds, joining a wave of European banks expanding capital returns to shareholders. While some analysts noted the buyback was below market consensus and certain targets might be seen as conservative, the overall earnings strength and strategic clarity appeared to drive the positive investor reaction.