In a brief statement, the FTSE 100-listed lender said the buyback would end no later than 31 December 2019.
READ: Lloyds sees 2018 profits miss forecasts after a weak fourth-quarter but still hikes dividend, launches share buyback
It added: “The sole purpose of the program is to reduce the ordinary share capital of the company.”
The bank unveiled the big share buyback program on 2 February when it reported below-forecast 2018 results but pleased investors by still hiking its dividend.
Lloyds said it will pay a total ordinary dividend for 2018 of 3.21p per share, up 5% from 2017.
With the proposed share buyback of up to £1.75bn that represented a total capital return for 2018 of up to £4.0bn, an increase of 26% from 2017’s £3.2bn figure.