Should I buy Lloyds Banking stock in 2025?
Is Lloyds Banking stock a buy right now?
Lloyds Banking Group, a stalwart of the UK financial sector, is currently trading at approximately 70.58p on the London Stock Exchange, with an average daily volume approaching 191 million shares. This robust turnover underlines steady investor engagement in a climate marked by both sector resilience and a constructive outlook. Despite near-term softness following the group’s provision for car finance mis-selling, Lloyds’ Q1 2025 results revealed higher net income (+4% year-on-year), steady lending growth, and deposit expansion—underscoring its strong retail and business franchise in the UK. Technical signals remain decisively positive, with the price trading above key moving averages and the stock earning a general ‘Buy’ consensus among analysts. The commencement of the share buyback programme and strategic transformation initiatives introduce further investor-friendly signals amid ongoing sector innovation. While the pending Supreme Court decision regarding legacy claims and global macro developments warrant continued attention, broader market sentiment is constructive. Notably, over 32 national and international banks currently set a consensus target price of 91.75p, reflecting enduring confidence in Lloyds’ capital strength, dividend profile, and potential for moderate capital appreciation within a stabilising UK banking landscape.
- Consistent dividend yield around 4.5%, attractive for income-focused investors.
- Strong growth in customer lending and deposits in latest reported quarter.
- Operating above key moving averages indicates positive technical momentum.
- Solid capital and liquidity position, with CET1 ratio at 13.5%.
- Strategic transformation and digital investment driving long-term competitiveness.
- Exposure to regulatory outcomes from the ongoing car finance mis-selling case.
- Rising operating costs could impact future profitability if not contained.
- What is Lloyds Banking?
- How much is Lloyds Banking stock?
- Our full analysis on Lloyds Banking </b>stock
- How to buy Lloyds Banking stock in United Kingdom?
- Our 7 tips for buying Lloyds Banking stock
- The latest news about Lloyds Banking
- FAQ
Why trust HelloSafe?
At HelloSafe, our specialist has been monitoring the performance of Lloyds Banking for over three years. Each month, hundreds of thousands of users in the UK rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, paid by Lloyds Banking.
What is Lloyds Banking?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | Lloyds is headquartered in the UK and serves mainly British retail customers. |
| 💼 Market | London Stock Exchange (LSE) | Listed on LSE, Lloyds is a major component of the FTSE 100 index. |
| 🏛️ ISIN code | GB0008706128 | Unique identifier required for trading and for regulatory purposes. |
| 👤 CEO | Charlie Nunn | Charlie Nunn has led the bank since August 2021, focusing on digital transformation. |
| 🏢 Market cap | £42.90 billion | Large market cap signals strong investor confidence and sector stability. |
| 📈 Revenue | Projected £13.5 billion (2025) | Growing net interest income highlights Lloyds' robust core banking business. |
| 💹 EBITDA | Not separately reported | Like many banks, Lloyds reports net interest income rather than EBITDA. |
| 📊 P/E Ratio (Price/Earnings) | 12.68 | Moderate P/E suggests shares are reasonably valued relative to sector peers. |
How much is Lloyds Banking stock?
The price of Lloyds Banking stock is falling this week. Currently trading at 70.58p, the share has dropped by 1.07% over the past 24 hours and is down 4.03% on the week. Lloyds holds a market capitalisation of £42.90 billion, with an average three-month daily volume of 191.45 million shares. The stock trades at a P/E ratio of 12.68 and offers a dividend yield of 4.49%. With a beta of 1.04, Lloyds shows moderate volatility, making it a noteworthy option for those considering exposure to the UK financial sector.
Compare the best brokers in the UK!Compare brokersOur full analysis on Lloyds Banking stock
Having carefully reviewed Lloyds Banking Group’s latest financial disclosures alongside an in-depth assessment of the stock’s trajectory over the preceding three years, our analysis integrates multifaceted insights ranging from financial and technical indicators to peer group benchmarking, all interpreted via proprietary quantitative models. This holistic approach has revealed key inflection points for Lloyds, hinting at renewed vigour in the UK banking sector’s investable landscape. So, why might Lloyds Banking stock once again become a strategic entry point into the financial services sector in 2025?
Recent Performance and Market Context
Lloyds Banking Group (LSE: LLOY) has outperformed expectations on several fronts, reinforcing the case for its consideration. Notably, the share price currently stands at 70.58p, reflecting a robust +15.18% gain over six months and an impressive +35.26% rise year-on-year. This upward trend, even in the face of recent short-term volatility (down -4.03% for the week), suggests a healthy consolidation after a sustained rally.
On a sector and macro level, UK banks are benefiting from a stabilising interest rate environment and improving consumer sentiment. Lloyds, with its sharp focus on retail and commercial lending, is particularly well-positioned to capitalise on the rebound in loan demand and resilient property markets. Its strong Q1 2025 lending growth—underlying loans and advances increasing by £7.1 billion—demonstrates continued competitive momentum.
In parallel, positive corporate developments have emerged: Lloyds’ solid customer deposit growth (up £5.0 billion in Q1), commencement of the anticipated share buyback, and reaffirmed 2025 guidance are signals of management confidence and financial stability. These strengths amplify investor interest at a time when regulatory headwinds and legacy litigation (notably the car finance mis-selling provision) are already largely discounted in valuations.
Technical Analysis
- Relative Strength Index (RSI 14): At 55.17, the RSI remains neutral, neither overbought nor oversold, suggesting scope for continued accumulation.
- Moving Averages: The price consistently trades above its key 20-day, 50-day, 100-day, and 200-day moving averages. This alignment is traditionally bullish and indicates underlying positive momentum in both short and long durations.
- MACD (12,26,9): While the MACD currently issues a mild sell signal (1.52), the overall technical consensus remains positive (12 bullish, 4 neutral, 6 bearish).
- Support and Resistance: The stock finds primary support at 70.16p and enjoys layered support at 66.76p; immediate resistances are located at 71.76p and 72.98p. This proximity to support offers an attractive risk/reward profile as the price approaches a technical pivot.
- Volume Momentum: Sustained average daily trading volumes (191.45 million shares) lend weight to technical signals, supporting market depth and liquidity.
Thus, the technical structure suggests Lloyds may be transitioning from consolidation to a fresh bullish phase, particularly when aligned with market catalysts and improving fundamentals.
Fundamental Analysis
- Revenue & Profitability: In Q1 2025, net income advanced by 4% year-on-year, and underlying other income gained 8%. The Group’s banking net interest margin of 3.03% is up 8 basis points—a notable achievement in a competitive landscape.
- Operational Leverage: While statutory profit after tax edged down (£1.1bn vs £1.2bn Q1 2024) owing mainly to higher litigation costs and investment in strategic initiatives, cost inflation remained contained. Operating costs rose 6%, yet were matched by efficient capital allocation, reflected in a robust return on tangible equity (ROTE) of 12.6% and a sector-leading CET1 ratio of 13.5%.
- Valuation Metrics: Trading at a P/E ratio of 12.68, Lloyds presents a compelling discount relative to historic averages and to many FTSE 100 peers. Coupled with a dividend yield of 4.49%, it offers both value and income attributes, appealing to defensive and growth-oriented investors alike.
- Market Share & Brand: As the UK’s largest retail banking group, Lloyds holds a resilient franchise with a significant share in mortgages, current accounts, and SME lending. The ongoing digital transformation and customer-centric innovations help underpin its competitive moat.
With analysts forecasting a projected uplift in structural hedge earnings (£1.2bn higher for 2025) and continued growth in new business flows (£0.9bn net new money into wealth/insurance platforms in Q1), the case for re-rating is well supported by operational performance and balance sheet strength.
Volume and Liquidity
Lloyds' average daily turnover of over 191 million shares exemplifies strong underlying market interest. This exceptional liquidity benefits all classes of investors, enhancing price discovery and reducing transaction costs. Coupled with a vast and diversified shareholder base—including significant institutional positioning after the UK government’s 2017 exit—the stock’s float is optimal for both dynamic valuation potential and safe market absorption during periods of elevated demand.
Moreover, the liquidity coverage ratio (145%) and net stable funding ratio (128%) point not only to internal financial resilience but sustain the broader investment case for Lloyds as a platform for consistent and attractive returns.
Catalysts and Positive Outlook
- Ongoing Share Buyback: Initiated in Q1, this programme sends a strong signal of board and management commitment to capital return and long-term value accretion.
- Strategic Transformation: Investments in digital innovation, agile product offerings, and ESG-aligned initiatives are positioning Lloyds for sustained earnings growth and margin expansion in core markets.
- Wealth & Insurance Growth: The expansion in insurance and pension inflows (up £0.9bn in Q1) secures diversified income streams, reducing cyclicality.
- Regulatory and Macro Tailwinds: As interest rates stabilise and regulatory guidance increasingly favours large, well-capitalised banks, Lloyds’ balance sheet discipline and readiness for further lending growth stand out. Asset quality remains robust, with a low asset quality ratio targeted at ~25 basis points for the year.
- Analyst Momentum: Consensus expectations suggest a projected price appreciation of nearly 12% in the coming quarter, confirming bullish sentiment.
While vigilance regarding the car finance litigation and external macro shocks remains prudent, these risks are balanced by management’s proactive provisioning and scenario planning.
Investment Strategies
- Short-Term - The recent retracement from a local high (-4.03% this week) is bringing the stock near robust support, an ideal set-up for traders seeking oversold bounces as the price stabilises above major moving averages.
- Medium-Term - The reaffirmed 2025 guidance, share buyback momentum, and sector-leading deposit growth reinforce the fundamental base for a re-rating. Investors looking to benefit from strategic transformation and potential regulatory relief may find an optimal window as the next earnings cycle approaches.
- Long-Term - Lloyds’ leadership in UK retail and digital banking, attractive dividend yield (4.49%), and disciplined cost and capital management are underappreciated compounding factors. Those with a long-term horizon stand to benefit from significant margin expansion, secular growth in insurance and wealth, and the resilience of the Lloyds franchise during policy and market shifts.
In summary, whether seeking tactical positioning at current technical levels or strategic allocations ahead of key catalysts, Lloyds’ risk-adjusted return profile appears compelling.
Is it the Right Time to Buy Lloyds Banking?
Bringing the analysis together, Lloyds Banking Group demonstrates a blend of operational resilience, disciplined capital deployment, and visible progress on strategic imperatives. The share price, currently near technical support after an extended rally, is underpinned by sound fundamentals and a suite of positive technical signals. A well-covered dividend, rational valuation, and strong market liquidity further reinforce the view that Lloyds Banking deserves renewed attention as a core holding for UK financial exposure.
With substantial earnings visibility, healthy cash generation, and ongoing transformation, the stock arguably represents an excellent opportunity for both value and income-focused investors. The presence of multiple technical and fundamental catalysts suggests Lloyds may be entering a new bullish phase, making the current environment appear robust for considering exposure.
Given these strengths, Lloyds Banking Group stands out as a leading candidate for inclusion in portfolios seeking to capitalise on the evolving landscape of UK financial services—an opportunity richly supported by prevailing data, technical structure, and strategic management.
How to buy Lloyds Banking stock in United Kingdom?
Buying Lloyds Banking Group stock online is a straightforward and secure process when you use a regulated UK broker. Investors have two main options: purchasing shares outright (“spot buying” or “cash buying”), or trading via Contracts for Difference (CFDs), which allow you to speculate on price movements with leverage. Each method offers distinct advantages depending on your goals and risk profile. To help you decide which is right for you, we provide a detailed comparison of UK brokers further down the page.
Spot Buying
A cash purchase means you buy Lloyds Banking Group shares directly and become a shareholder. You can do this through an online broker regulated by the Financial Conduct Authority (FCA). Typical fees include a fixed commission per order, often around £5–£10, though some platforms offer commission-free trading.
Important Information
Example:
- Let’s say the Lloyds Banking share price is 70.58p (British Pence). With a £1,000 investment, you can buy approximately 1,414 shares (excluding minor currency rounding and after deducting a £5 brokerage fee).
- Gain scenario:
If the share price rises by 10%, your shares would be worth about £1,100.
- Result: +£100 gross gain, corresponding to a +10% return on your £1,000 investment (before tax).
As a shareholder, you may also receive dividends (Lloyds currently yields around 4.5%) and can hold your shares in a UK ISA or SIPP for tax efficiency.
Trading via CFD
CFD (Contract for Difference) trading enables you to speculate on Lloyds Banking's share price without owning the shares. CFDs are offered by many UK brokers and allow you to use leverage to increase your market exposure. Instead of paying a commission, you pay the “spread” (the difference between the buy and sell price), plus overnight financing charges if you hold positions for more than a day.
Important Information
Example:
- You open a CFD position on Lloyds Banking with a £1,000 deposit and 5x leverage. This gives you £5,000 worth of market exposure.
- Gain scenario:
If Lloyds' share price rises by 8%, your position value increases by 8% × 5 = 40%.
- Result: +£400 gain on your £1,000 investment (excluding spread and any overnight fees).
CFDs let you use stop losses, and trade both rising and falling markets, but remember that leverage amplifies both gains and losses.
Final Advice
Before investing in Lloyds Banking Group, it’s essential to compare the fees, conditions, and regulatory protections offered by different UK brokers — these can significantly affect your net returns. Whether you’re looking for the long-term benefits of being a shareholder, or prefer the flexibility of short-term trading with CFDs, the best method depends on your personal financial goals and your appetite for risk. Don’t forget to consult our broker comparison further down the page to find the solution that best suits your needs.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying Lloyds Banking stock
| Step | Specific tip for Lloyds Banking |
|---|---|
| Analyse the market | Review recent performance and technical signals for Lloyds Banking, noting stronger price momentum and a positive outlook, but remain aware of sector and economic trends that can affect UK banks. |
| Choose the right trading platform | Select a UK-regulated broker that provides access to the London Stock Exchange, competitive fees, and integration with ISA or SIPP accounts to maximise tax efficiency on Lloyds shares. |
| Define your investment budget | Decide how much of your portfolio to allocate to Lloyds; take into account your risk tolerance and consider diversifying with additional UK blue-chip stocks for balanced exposure. |
| Choose a strategy (short or long term) | For most retail investors, a long-term approach can benefit from Lloyds’ strong dividend yield, recovery prospects, and potential capital growth as bank earnings improve. |
| Monitor news and financial results | Stay updated on quarterly results, especially regarding loan growth and any news on the car finance mis-selling case, as legal outcomes may impact share price in the near term. |
| Use risk management tools | Utilise stop-loss and take-profit orders to help protect against sudden moves, and regularly review your portfolio, adjusting your Lloyds position as needed. |
| Sell at the right time | Consider selling part or all of your holding if Lloyds reaches significant resistance levels, after strong rallies, or if there are major negative developments in the group’s prospects. |
The latest news about Lloyds Banking
Q1 2025 results confirm robust growth in lending and deposits, highlighting Lloyds’ strengthening UK market position. Lloyds Banking Group reported resilient first-quarter 2025 results, with underlying loans and advances rising by £7.1 billion to £466.2 billion and customer deposits increasing by £5.0 billion to £487.7 billion over the quarter. Despite a slight dip in statutory profit after tax compared to the previous year, net income advanced by 4% year-on-year and the banking net interest margin improved to 3.03%. The group’s capital strength remains intact, demonstrated by a Common Equity Tier 1 (CET1) ratio of 13.5%, further supporting its lending and growth capacity within the UK, where it is one of the dominant retail banks.
Share buyback programme underway supports shareholder returns and market confidence. Lloyds has commenced its previously announced share repurchase initiative, underlining its commitment to returning value to shareholders. This move is especially significant for UK investors seeking both income and growth, as it is complemented by a generous 4.49% dividend yield. The ongoing buyback contributes to EPS support and showcases management’s confidence in the Group’s financial health, which can bolster market sentiment and potentially support the stock price.
Technical analysis points to continued positive momentum, reinforcing a bullish near-term outlook. Technical indicators as of early May 2025 are predominantly bullish, with the current share price above major moving averages (20, 50, 100, and 200 days), and an overall consensus of "Buy" from 12 bullish signals versus 6 bearish. The RSI sits in neutral territory at 55.17, suggesting there’s no imminent risk of overbought conditions, while price remains near recent support levels and below key resistance. This technical backdrop aligns with analyst expectations for an 11.78% rise in the coming quarter, adding constructive context for UK-based investors evaluating Lloyds’ share price outlook.
2025 guidance reaffirms stable fundamentals and management’s confidence in sustainable performance. Management has reiterated its 2025 targets, expecting around £13.5 billion in net interest income and a return on tangible equity of approximately 13.5%. The bank also anticipates solid capital generation and manageable asset quality, reflecting consistent execution of its ongoing strategic transformation. These reaffirmations provide assurance to UK investors about the Group’s direction and its resilience amid broader economic uncertainties, underscoring Lloyds’ role as a pillar of the domestic financial sector.
Structural hedge earnings, liquidity, and wealth management franchise continue to bolster group resilience. Lloyds projects structural hedge earnings to rise by £1.2 billion in 2025 over the prior year, with substantial liquidity coverage (145%) and net stable funding ratios (128%). The Group also delivered £0.9 billion of net new money in its Insurance, Pensions, and Investments division in Q1, demonstrating successful expansion beyond traditional banking. This diversification is particularly relevant for UK clients, providing robust multi-channel financial services and underpinning the bank’s capacity to weather fluctuations and maintain a steady performance trajectory.
FAQ
What is the latest dividend for Lloyds Banking stock?
Lloyds Banking stock currently pays a dividend. The latest dividend is 1.84p per share, paid in May 2025. This translates to a yield of 4.49%, reflecting the company’s commitment to rewarding shareholders. Lloyds has maintained a stable dividend policy in recent years, with slight growth in payouts, demonstrating its confidence in consistent underlying profits.
What is the forecast for Lloyds Banking stock in 2025, 2026, and 2027?
Based on the most recent price of 70.58p, the projected share price for Lloyds Banking is 91.75p at the end of 2025, 105.87p at the end of 2026, and 141.16p at the end of 2027. The banking sector in the UK is currently benefiting from robust lending growth and favourable interest margins, adding to the encouraging outlook for Lloyds Banking shares over the next few years.
Should I sell my Lloyds Banking shares?
Holding on to Lloyds Banking shares may be wise given the company’s solid fundamentals, steady dividend income, and positive price momentum. Lloyds has demonstrated resilient performance even during challenging market conditions, and its current valuation offers room for growth. Its strategy, focused on transformation and customer innovation, positions it well for the medium to long-term—suggesting that continued holding could be beneficial for many investors.
Are Lloyds Banking shares eligible for a UK ISA, and how are dividends taxed?
Lloyds Banking shares are eligible to be held in a UK Individual Savings Account (ISA), meaning any dividends and capital gains are tax-free within the ISA wrapper. Outside an ISA, UK residents benefit from a £2,000 annual dividend allowance, after which dividends are subject to income tax at applicable rates. No withholding tax applies to Lloyds Banking dividends for UK investors.
What is the latest dividend for Lloyds Banking stock?
Lloyds Banking stock currently pays a dividend. The latest dividend is 1.84p per share, paid in May 2025. This translates to a yield of 4.49%, reflecting the company’s commitment to rewarding shareholders. Lloyds has maintained a stable dividend policy in recent years, with slight growth in payouts, demonstrating its confidence in consistent underlying profits.
What is the forecast for Lloyds Banking stock in 2025, 2026, and 2027?
Based on the most recent price of 70.58p, the projected share price for Lloyds Banking is 91.75p at the end of 2025, 105.87p at the end of 2026, and 141.16p at the end of 2027. The banking sector in the UK is currently benefiting from robust lending growth and favourable interest margins, adding to the encouraging outlook for Lloyds Banking shares over the next few years.
Should I sell my Lloyds Banking shares?
Holding on to Lloyds Banking shares may be wise given the company’s solid fundamentals, steady dividend income, and positive price momentum. Lloyds has demonstrated resilient performance even during challenging market conditions, and its current valuation offers room for growth. Its strategy, focused on transformation and customer innovation, positions it well for the medium to long-term—suggesting that continued holding could be beneficial for many investors.
Are Lloyds Banking shares eligible for a UK ISA, and how are dividends taxed?
Lloyds Banking shares are eligible to be held in a UK Individual Savings Account (ISA), meaning any dividends and capital gains are tax-free within the ISA wrapper. Outside an ISA, UK residents benefit from a £2,000 annual dividend allowance, after which dividends are subject to income tax at applicable rates. No withholding tax applies to Lloyds Banking dividends for UK investors.
