What happened Shares of Lloyds Banking Group (NYSE: LYG) jumped more than 12% on Friday, as investors grew more optimistic that a Brexit deal could soon be reached. So what The uncertainty of how and when the U.K. will exit the European Union has weighed on the country's economy. The banking sector, in particular, has suffered, as banks have been forced to set aside funds to cover potential losses should a hard exit drive the U.K.'s economy into a tailspin. Brexit will also likely weaken London's position as a major financial center for the region, which could further pressure banks' profits. Reports on Friday of progress toward a potential Brexit deal that would help support British banks helped to alleviate some of these concerns, and investors cheered the news. Lloyds Banking Group's shareholders are hoping that the U.K. and European Union can strike a Brexit deal. Image source: Getty Images. Now what Investors, however, should note that a deal has not yet been reached. Key challenges remain, such as whether customs checkpoints will be needed between the U.K and Ireland after Brexit. "There is a joint feeling that there is a way forward that we can see a pathway to a deal," U.K. Prime Minister Boris Johnson said. "That doesn't mean it's a done deal. There's work to be done." Still, judging by the sizable gains in Lloyds Banking Group's stock price on Friday, investors appear to be growing increasingly optimistic that a favorable Brexit deal will be achieved. 10 stocks we like better than Lloyds Banking GroupWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Lloyds TSB Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 1, 2019 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source