Lloyds’ share price beat all FTSE 100 banks in August — but 2 FTSE 250 peers are still ahead

Up 5.17%, the Lloyds share price has done well this month, beating out all the other major UK banks including NatWest, Barclays and HSBC. As Britain’s biggest retail bank, Lloyds is often seen as the bellwether of the sector. 

But while it’s led the FTSE 100 pack, two regional FTSE 250 players are actually ahead.

Close Brothers Group’s (LSE: CBG) jumped 17.73% this month, while Paragon Banking Group‘s (LSE: PAG) up 5.95% (as of 28 August).

That begs the question: do these smaller lenders offer the same long-term value as Lloyds? I decided to take a closer look.

Flying too close to the sun

Close Brothers has been one of the most remarkable performers of 2025, with its share price almost doubling year-to-date. The specialist financial services group provides lending, securities trading and investment management solutions across a range…