Balanced Risk-Reward Keeps Lloyds at Hold Despite Solid Results and Capital Returns

In a report released today, Perlie Mong from Bank of America Securities maintained a Hold rating on Lloyds Banking, with a price target of p110.00.

Perlie Mong has given his Hold rating due to a combination of factors that balance solid recent performance with only limited upside versus the current share price. Lloyds’ latest quarter came in ahead of profit expectations, mainly because loan-loss charges were lower than anticipated and remediation expenses were well contained, while revenue and operating costs were roughly in line with market forecasts. The bank also confirmed a final dividend and a sizeable share buyback that matched investor expectations, supporting the capital return story but not providing a positive surprise.

At the same time, loan volumes are growing, particularly in mortgages and consumer credit, but deposit trends are broadly flat and commercial lending is not showing strong momentum. Management’s 2026 guidance points to net interest income that is slightly below consensus, with returns and cost targets close to what the market already expects, and a somewhat less favorable capital impact from upcoming Basel 3.1 rules than previously indicated. With the price objective only modestly above the prevailing share price, Mong’s assessment is that the risk‑reward profile is balanced rather than compelling, justifying a Neutral/Hold stance on the stock.

In another report released today, TipRanks – PerPlexity also reiterated a Hold rating on the stock with a p114.00 price target.

Based on the recent corporate insider activity of 119 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LLOY in relation to earlier this year.