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Lloyds Banking
(NYSE:LYG)
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Rating:62Neutral
Price Target:
$6.50
â–²(7.97% Upside)
Action:Reiterated
Date:08/03/26
The score is held back primarily by weaker financial quality signals—especially volatile cash generation and negative free cash flow in the last two annual periods, plus a meaningful increase in leverage—despite steady revenue growth. Offsetting this, the technical trend is constructive (price above major moving averages) and the latest earnings call was strongly supportive with upbeat multi-year targets and increased shareholder returns. Valuation is mixed, with a moderate dividend yield but a P/E that is not clearly cheap on the provided data.
Positive Factors
Market leadership & deposit franchise
Scale in mortgages, business lending and deposits provides durable funding advantage and deep customer relationships across UK retail and SME markets. A large, sticky deposit base and sizeable lending book support margin stability, cross-sell opportunities and resilience through cycles.
Negative Factors
Weak cash conversion
Consecutive years of negative free cash flow and volatile operating cash flow reduce internal funding capacity and weaken the company’s buffer to support buybacks, investments or shock absorption. Persistent weak cash conversion risks reliance on wholesale funding or capital actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Market leadership & deposit franchise
Scale in mortgages, business lending and deposits provides durable funding advantage and deep customer relationships across UK retail and SME markets. A large, sticky deposit base and sizeable lending book support margin stability, cross-sell opportunities and resilience through cycles.
Read all positive factors
Lloyds Banking Key Performance Indicators (KPIs)
Any
Net Interest Income by Segment
Shows how much income is generated from interest across different business segments, highlighting which areas are most profitable and sensitive to interest rate changes.
Shows how much income is generated from interest across different business segments, highlighting which areas are most profitable and sensitive to interest rate changes.
Data provided by:
The Fly
The FlyLloyds Banking (LYG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$89.74B
Dividend Yield3.18%
Average Volume (3M)20.21M
Price to Earnings (P/E)20.3
Beta (1Y)0.91
Revenue Growth-13.48%
EPS Growth25.29%
CountryUS
Employees60,061
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.28
Shares Outstanding14,535,667,000
10 Day Avg. Volume16,723,487
30 Day Avg. Volume20,214,928
Financial Highlights & Ratios
PEG Ratio1.58
Price to Book (P/B)1.23
Price to Sales (P/S)0.90
P/FCF Ratio-94.07
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.55
Revenue Forecast (FY)$28.12B
Lloyds Banking Business Overview & Revenue Model
Company Description
Operating primarily within the United Kingdom, Lloyds Banking Group plc and its various subsidiaries deliver an extensive array of banking and financial products and services. The group's operations are divided into three core segments: Retail, Co...
How the Company Makes Money
Lloyds Banking Group primarily makes money by earning interest income on loans and investment assets and paying interest on customer deposits and wholesale funding, capturing the spread between the two (net interest income). A major component is r...
Lloyds Banking Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial story: robust H1 results, clear capital strength, meaningful shareholder returns (30% interim dividend uplift and a GBP 1bn buyback) and a detailed, well‑quantified Accelerate 2030 strategic plan with explicit targets for income growth, efficiency and returns. Challenges identified — used car pricing pressure in leasing, near‑term cost phasing, conservative hedge assumptions, RWA increases and regulatory/AI execution risks — are acknowledged and framed as manageable within the strategy. On balance the announcement conveys confidence in sustained profitable growth while prudently recognising execution and macro/regulatory uncertainties.Positive Updates
Robust H1 financial performance
Statutory profit after tax GBP 3.1bn; return on tangible equity 17.1% in H1; net income GBP 9.7bn, up 9% year‑on‑year; H1 impairment charge GBP 617m (asset quality ratio 25bps) demonstrating stable credit performance.
Negative Updates
Used car price adversity and higher operating lease depreciation
Operating lease depreciation in Q2 GBP 452m (up GBP 63m Q‑on‑Q) driven by fleet growth and a GBP 41m charge due to used car price weakness; company expects reversion to a normalized run rate but near‑term hit to OOI/profitability in transport/leasing.
Read all updates
Q2-2026 Updates
Positive
Negative
Robust H1 financial performance
Statutory profit after tax GBP 3.1bn; return on tangible equity 17.1% in H1; net income GBP 9.7bn, up 9% year‑on‑year; H1 impairment charge GBP 617m (asset quality ratio 25bps) demonstrating stable credit performance.
Read all positive updates
Company Guidance
Management guidance focused on continued income growth, stronger operating leverage and rising capital generation: NII for 2026 guided >£14.9bn, net income to grow at a mid‑single‑digit CAGR to 2030 with OOI at a high‑single‑digit CAGR, and structural hedge income expected >£7bn in 2026, >£8bn in 2027 and >£9bn by 2030. Cost and investment guidance: CIR <50% in 2026 (Q2 at 49%) falling to <45% by 2030, circa £2bn of additional gross cost saves targeted 2027–30, total cash investment >£13bn over the plan with cash investment +10–15% in 2027 vs 2026. Returns and capital: RoTE >16% in 2026 rising to ~20% by 2030, capital generation >200bps in 2026 rising to >225bps by 2030, stable CET1 target 13% and AQR guidance 25–30bps through the plan. Near‑term metrics reiterated: H1 statutory profit after tax £3.1bn (RoTE 17.1%), H1 net income £9.7bn (+9% y/y), H1 NII £7.3bn (margin 319bps, Q2 322bps), H1 impairment £617m (AQR 25bps), pro‑forma CET1 13.1% after distributions; balance sheet scale: group lending £492bn, deposits >£0.5tn, open‑book AUA £251bn; and shareholder returns stepped up with interim ordinary dividend +30% to 1.58p and an interim £1bn buyback (>£1.9bn returned in H1).Lloyds Banking Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
58
Neutral
Cash Flow
40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 65.00B | 37.61B | 33.95B | 20.77B | 18.71B |
| Gross Profit | 19.42B | 18.60B | 19.20B | 16.05B | 16.32B |
| EBITDA | 6.66B | 9.40B | 10.41B | 7.18B | 9.73B |
| Net Income | 4.66B | 4.42B | 5.46B | 3.83B | 5.78B |
Balance Sheet | |||||
| Total Assets | 944.07B | 906.70B | 881.45B | 873.39B | 886.52B |
| Cash, Cash Equivalents and Short-Term Investments | 60.60B | 67.07B | 78.11B | 92.05B | 83.41B |
| Total Debt | 95.14B | 88.52B | 93.67B | 91.83B | 91.84B |
| Total Liabilities | 896.21B | 860.81B | 834.09B | 829.48B | 833.37B |
| Stockholders Equity | 47.67B | 45.72B | 47.16B | 43.67B | 52.92B |
Cash Flow | |||||
| Free Cash Flow | -625.00M | -8.76B | 1.35B | 18.16B | 3.39B |
| Operating Cash Flow | 4.33B | -4.39B | 6.81B | 22.01B | 6.62B |
| Investing Cash Flow | -9.97B | -7.69B | -9.82B | 510.00M | -2.54B |
| Financing Cash Flow | -4.00B | -5.93B | -3.50B | -6.61B | -3.23B |
Lloyds Banking Technical Analysis
Positive
6.02
Price Trends
5.81
Positive
5.53
Positive
5.33
Positive
Market Momentum
0.12
Negative
59.77
Neutral
82.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYG, the sentiment is Positive. The current price of 6.02 is below the 20-day moving average (MA) of 6.08, above the 50-day MA of 5.81, and above the 200-day MA of 5.33, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.77 is Neutral, neither overbought nor oversold. The STOCH value of 82.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LYG.
Lloyds Banking Risk Analysis
Lloyds Banking disclosed 33 risk factors in its most recent earnings report. Lloyds Banking reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lloyds Banking Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $98.17B | 12.58 | 12.49% | 3.25% | 2.42% | 19.99% | |
76 Outperform | $99.70B | 13.74 | 12.34% | 2.83% | 3.92% | 24.15% | |
72 Outperform | $64.59B | 11.76 | 9.01% | 4.02% | 0.36% | 18.53% | |
69 Neutral | $96.01B | 11.08 | 21.64% | 7.10% | 19.64% | 12.10% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $127.22B | 14.57 | 12.28% | 1.73% | 2.65% | 54.00% | |
62 Neutral | $89.74B | 20.34 | 11.05% | 3.26% | -13.48% | 25.29% |
* Financial Sector Average
LYG
Lloyds Banking
6.28
1.98
46.18%
TFC
Truist Financial
52.35
10.64
25.51%
ITUB
Itau Unibanco
7.94
1.76
28.38%
MFG
Mizuho Financial
10.71
4.45
71.09%
PNC
PNC Financial
252.56
68.87
37.49%
USB
US Bancorp
63.94
20.80
48.22%
Lloyds Banking Corporate Events
Lloyds Banking Group Cancels 7 Million Shares After 10 July Buyback
Jul 10, 2026
On 10 July 2026, Lloyds Banking Group plc disclosed that it repurchased 7,000,000 of its ordinary shares on the same date as part of its ongoing share buyback programme. The purchases, executed through Goldman Sachs International, were made at pri...
Lloyds Banking Group Cancels 7 Million Shares in Latest Buyback Move
Jul 9, 2026
On 9 July 2026, Lloyds Banking Group disclosed that it had repurchased 7 million of its ordinary shares from Goldman Sachs International as part of its ongoing share buyback programme, authorised in January 2026. The shares were bought at prices b...
Lloyds Banking Group Cancels 10 Million Shares in Ongoing Buyback
Jul 8, 2026
On 8 July 2026, Lloyds Banking Group plc reported that it had repurchased 10,000,000 of its ordinary shares from Goldman Sachs International under its ongoing share buyback programme, at prices between 110.65p and 113.60p per share and a volume-we...
Lloyds Banking Group Cancels 7 Million Shares After Buyback on 7 July 2026
Jul 7, 2026
On 7 July 2026, Lloyds Banking Group plc reported that it had repurchased 7,000,000 of its ordinary shares from Goldman Sachs International as part of its ongoing share buyback programme. The purchase prices ranged between 114.30 pence and 115.55 ...
Lloyds Banking Group Cancels Nearly 7 Million Shares in Latest Buyback Tranche
Jul 6, 2026
Lloyds Banking Group plc reported that on 06 July 2026 it repurchased 6,986,031 ordinary shares on the market, via Goldman Sachs International, under its previously announced share buyback programme initiated in January 2026. The shares were acqui...
Lloyds Banking Group Cancels 5 Million Shares in July Buyback
Jul 6, 2026
On 3 July 2026, Lloyds Banking Group executed a significant share repurchase as part of its ongoing buyback programme, acquiring 5,000,000 ordinary shares from Goldman Sachs International. The transaction was completed at prices between 113.40p an...
Lloyds Banking Group Cancels 5 Million Shares in Ongoing Buyback
Jun 26, 2026
On 26 June 2026, Lloyds Banking Group disclosed that it had repurchased 5 million of its ordinary shares on the same date as part of its ongoing share buyback programme, executed via Goldman Sachs International. The shares were bought at prices be...
Lloyds Banking Discloses PDMR Share Acquisition Under 2017 Sharesave Scheme
Jun 26, 2026
On 24 June 2026, Lloyds Banking Group reported that Sharon Doherty, its Chief People Places Officer and a person discharging managerial responsibilities, acquired 45,708 ordinary shares in the bank at 39.38 pence each. The purchase followed the e...
Lloyds Banking Group Cancels 5 Million Shares in Latest Buyback Move
Jun 25, 2026
On 25 June 2026, Lloyds Banking Group plc reported that it had repurchased 5,000,000 of its ordinary shares from Goldman Sachs International as part of its ongoing share buyback programme. The shares were bought at prices between 107.45p and 110.3...
Lloyds Banking Group to Redeem $2 Billion of 2027 Senior Notes in August 2026
Jun 25, 2026
On June 25, 2026, Lloyds Banking Group announced it had issued a notice of redemption for the full outstanding principal of its $1.5 billion 5.985% Senior Callable Fixed-to-Fixed Rate Notes due 2027 and $500 million Senior Callable Floating Rate N...
Lloyds Banking Group to Redeem $2 Billion of Senior Notes Ahead of 2027 Maturity
Jun 25, 2026
On 25 June 2026, Lloyds Banking Group announced it has issued a notice of redemption for the full outstanding principal of its $1.5 billion 5.985% Senior Callable Fixed-to-Fixed Rate Notes due 2027 and $500 million Senior Callable Floating Rate No...
Lloyds Banking Group Buys Back and Cancels 5 Million Shares on 24 June 2026
Jun 24, 2026
On 24 June 2026, Lloyds Banking Group plc reported that it had repurchased 5,000,000 of its ordinary shares from Goldman Sachs International as part of its ongoing share buyback programme. The shares were bought at prices ranging between 107.55p a...
Lloyds Banking Group Cancels 5 Million Shares in Latest Buyback Move
Jun 23, 2026
On 23 June 2026, Lloyds Banking Group reported that it had repurchased 5,000,000 of its ordinary shares as part of its ongoing share buyback programme, using Goldman Sachs International as broker. The shares were bought at prices ranging between 1...
Lloyds Banking Group Cancels 5 Million Shares in Latest Buyback Move
Jun 22, 2026
Lloyds Banking Group disclosed that on 22 June 2026 it repurchased 5,000,000 of its ordinary shares from Goldman Sachs International as part of its ongoing share buyback programme. The shares were bought at prices ranging between 104.6500p and 109...
Lloyds Banking Group Cancels 5 Million Shares in June Buyback
Jun 22, 2026
On 19 June 2026, Lloyds Banking Group disclosed that it repurchased 5,000,000 of its own ordinary shares from Goldman Sachs International as part of its ongoing share buyback programme, originally mandated to the broker in late January 2026. The s...
Lloyds Banking Group COO Sells Shares While Maintaining Policy-Aligned Stake
Jun 22, 2026
On 18 June 2026, Lloyds Banking Group’s Group Chief Operating Officer, Ron van Kemenade, disposed of a total of 978,309 ordinary shares in the bank on the London Stock Exchange, at prices slightly above 105 pence per share. The transactions,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.