The bank’s advance built on steady momentum in recent months, with investors encouraged by resilient first-half earnings and improved guidance.
Analysts said the rally reflects growing confidence in the lender’s ability to maintain strong net interest margins even as the Bank of England (BoE) is expected to begin cutting rates later this year.
The bank has also benefited from reduced political uncertainty and signs of stabilising UK economic growth, both of which could bolster lending volumes and credit quality.
The government’s ongoing sell-down of its stake, now reduced to below 20%, has been met with strong institutional demand, reinforcing confidence in the bank’s investment case.
The FTSE 100 hit a record high above the 9,200 mark on Friday morning, helped by gains in miners on hopes of easing trade tensions.