Lloyds declined to comment on the report.
A buyback would chime in with the expectations of investors, who are also anticipating news from the British bank of a three-year plan centred on digital investment and growing its insurance and wealth businesses.
Lloyds, Britain’s biggest mortgage lender, reported its highest full-year profit since 2006 last year.
Bailed out nine years ago in a 20 billion pound rescue during the financial crisis, it returned to full private ownership in May with the sale of the last of the government’s stake.
Reporting by Ismail Shakil in Bengaluru and Emma Rumney in London; editing by John Stonestreet