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Lloyds Banking (LLOY) AI Stock Analysis
Lloyds Banking
(LSE:LLOY)
The score is driven down primarily by weaker financial quality signals—especially negative free cash flow in the last two years and a material 2025 leverage increase—despite healthy revenue growth. Offsetting this, technicals are supportive (price above key moving averages with positive MACD) and the latest earnings call was notably strong with clear guidance, solid profitability, and increased capital returns. Valuation is a modest constraint due to the ~20x P/E with only a mid-level dividend yield.
Lloyds Banking (LLOY) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 53.61B
- Dividend Yield
- 4.29%
- Average Volume (3M)
- 151.51M
- Price to Earnings (P/E)
- 9.6
- Beta (1Y)
- 1.46
- Revenue Growth
- -1.77%
- EPS Growth
- 70.96%
- Country
- UK
- Employees
- 60,061
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Banks - Regional
Lloyds Banking Business Overview & Revenue Model
Company Description
Lloyds Banking Group plc, a long-standing financial institution founded in 1695 and headquartered in London, UK, operates as a leading provider of banking and financial services throughout the United Kingdom. Its operations are strategically structur...
How the Company Makes Money
Lloyds Banking Group primarily makes money by earning income on financial products and services provided to retail and commercial customers. 1) Net interest income (core earnings engine) - Lloyds collects interest on assets such as residential mortga...
Lloyds Banking Earnings Call Summary
The call presented a strong set of H1 2026 financial results (GBP 3.1bn statutory profit, RoTE 17.1%, net income +9% YoY), robust capital generation and a clear, ambitious strategic plan (Accelerate 2030) emphasizing AI, customer connectivity and further cost savings. Management announced a meaningful shareholder return step-up (30% interim dividend increase and GBP 1bn buyback) and reiterated conservative but achievable financial targets (mid-single-digit net income CAGR, high-single-digit OOI CAGR, CIR <45% by 2030, RoTE ~20% by 2030). Notable challenges include ongoing competitive margin pressure, deposit market dynamics, near-term investment-driven OpEx uplift and some volatility in transport lease depreciation and Q2 impairment modeling. Overall, the positives (strong profitability, capital, diversified income growth, clear AI/technology strategy and committed cost-savings) materially outweigh the manageable and well-disclosed headwinds.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management reiterated it is on track for 2026 and set clear 2030 targets: H1 statutory profit after tax £3.1bn, net income £9.7bn (+9% y/y), NII £7.3bn (+9%) with 2026 NII guided >£14.9bn, other income £3.3bn (+11%), H1 RoTE 17.1% and TNAV 57p; H1 operating costs £4.9bn (flat), impairment £617m (AQR 25bps), Q2 NIM 322bps and structural hedge income £3.4bn (notional £246bn, WAL ~3.75yrs, yield 2.7%) expected >£7bn in 2026, >£8bn in 2027 and >£9bn in 2030. Under Accelerate 2030 they target mid‑single‑digit net income CAGR to 2030 (high‑single‑digit OOI CAGR), cost‑income ratio <50% in 2026 and <45% by 2030, ~£2bn gross cost saves (2027–30), cash investment >£13bn over the plan (10–15% higher in 2027), RoTE ≈20% in 2030 (＞18% in 2028), capital generation >200bps in 2026 rising to >225bps by 2030 with a CET1 target of 13% (pro‑forma CET1 after distributions 13.1% H1), interim dividend +30% to 1.58p and a £1bn interim buyback (combined >£1.9bn returned in H1). Key balance‑sheet metrics: group lending £492bn (Q2 +£5bn QoQ), deposits >£0.5tn (Q2 +£5bn), open‑book AUA c.£251bn (Q2 +£25bn); AQR guidance 25–30bps through the plan.
Lloyds Banking Financial Statement Overview
Summary
Income statement is solid but mixed: revenue grew steadily through 2025, yet net income declined in 2024 and again in 2025 and margins are below 2021–2023 levels. Balance sheet shows a notable 2025 leverage step-up (debt rising sharply vs equity), increasing risk. Cash flow is the weakest area with volatile operating cash flow and negative free cash flow in 2024–2025, reducing financial flexibility.
Income Statement
68PositiveBalance Sheet
57NeutralCash Flow
41Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.26B | 40.96B | 37.61B | 33.95B | 20.77B | 18.71B |
| Gross Profit | 28.77B | 22.64B | 18.60B | 19.20B | 16.05B | 16.32B |
| EBITDA | 8.61B | 6.66B | 9.40B | 10.41B | 7.18B | 9.73B |
| Net Income | 6.17B | 4.20B | 4.42B | 5.46B | 3.83B | 5.78B |
Balance Sheet | ||||||
| Total Assets | 995.14B | 944.07B | 906.70B | 881.45B | 873.39B | 886.52B |
| Cash, Cash Equivalents and Short-Term Investments | 55.92B | 60.60B | 137.01B | 138.50B | 139.34B | 138.16B |
| Total Debt | 100.88B | 141.60B | 88.52B | 93.67B | 91.83B | 91.84B |
| Total Liabilities | 949.17B | 896.21B | 860.81B | 834.09B | 829.48B | 833.37B |
| Stockholders Equity | 45.75B | 47.67B | 45.72B | 47.16B | 43.67B | 52.92B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -639.00M | -10.02B | 1.35B | 18.16B | 3.39B |
| Operating Cash Flow | 0 | 4.43B | -4.39B | 6.81B | 22.01B | 6.62B |
| Investing Cash Flow | 0 | -10.19B | -7.69B | -9.82B | 510.00M | -2.54B |
| Financing Cash Flow | 0 | -4.09B | -5.93B | -3.50B | -6.61B | -3.23B |
Lloyds Banking Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LLOY, the sentiment is Negative. The current price of 93.50 is below the 20-day moving average (MA) of 102.40, below the 50-day MA of 106.71, and below the 200-day MA of 102.91, indicating a bearish trend. The MACD of -2.23 indicates Positive momentum. The RSI at 30.12 is Neutral, neither overbought nor oversold. The STOCH value of 25.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:LLOY.
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.
Latest Risks Added
0 New RisksLloyds Banking Peers Comparison
Overall Rating
GB:OSB80Outperform
GB:NWG70Outperform
GB:BARC68Neutral
GB:NBS67.2Neutral- GB:LLOY66Neutral
GB:MTRO63Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:OSB | 80Outperform | GBP 1.60B | 6.22 | 13.06% | 7.49% | -5.67% | 8.94% |
| GB:NWG | 70Outperform | GBP 45.80B | 6.10 | 15.79% | 6.04% | 3.44% | 13.41% |
| GB:BARC | 68Neutral | GBP 55.20B | 8.20 | 10.79% | 2.77% | 6.60% | 23.56% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| GB:NBS | 67Neutral | GBP 1.32B | 1.08 | 5.68% | ― | 7.19% | -54.08% |
| GB:LLOY | 66Neutral | GBP 53.46B | 9.56 | 13.09% | 4.29% | -1.77% | 70.96% |
| GB:MTRO | 63Neutral | GBP 1.04B | 19.37 | 7.00% | ― | 0.76% | -49.33% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:LLOY | Lloyds Banking | 93.50 | 7.41 | 8.60% | |
| GB:BARC | Barclays plc | 415.05 | 17.63 | 4.44% | |
| GB:MTRO | Metro Bank | 154.60 | 39.20 | 33.97% | |
| GB:NBS | Nationwide Building Society | 12500.00 | -550.00 | -4.21% | |
| GB:OSB | OSB Group PLC | 479.00 | -23.10 | -4.60% | |
| GB:NWG | Natwest Group Plc (Lse) | 579.60 | 27.23 | 4.93% |
Lloyds Banking Corporate Events
Lloyds Banking Group Tightens Ring-Fencing Governance With Board Changes
PositiveLloyds Banking Group PLC has announced board changes following a revised Prudential Regulation Authority direction that allows directors of its ring-fenced banks, Lloyds Bank plc and Bank of Scotland plc, to also sit on the Group board. The move rein...
Lloyds Banking Group Strengthens Board With Appointment of Chris Rhodes
PositiveLloyds Banking Group has appointed Chris Rhodes as an independent non-executive director, effective 1 November 2026, and he will join both the Audit Committee and Board Risk Committee. Chair Sir Robin Budenberg highlighted that Rhodes brings extensiv...
Lloyds Banking to Call ¥50.3bn Senior Unsecured Bonds in 2026
PositiveLloyds Banking Group plc has announced that it will redeem in full its 12th Series JPY 50,300,000,000 1.377% Fixed Rate Reset Senior Unsecured Bonds on 1 December 2026, the scheduled call date.The bonds, issued in December 2023 and due to mature in D...
Lloyds Banking Group Advances Share Buyback with 38 Million Share Purchase
PositiveLloyds Banking Group has continued to execute its previously announced share buyback programme, purchasing a total of 38 million ordinary shares between 12 and 16 October 2026 through Goldman Sachs International. The shares, bought at volume‑we...
Lloyds Banking Group Reports Routine Executive Share Incentive Awards
NeutralLloyds Banking Group is one of the U.K.’s largest banking and financial services institutions, offering retail and commercial banking, wealth management and insurance products. The group focuses predominantly on the domestic market, operating w...
Lloyds Banking Group Advances Share Buyback With Further Share Cancellations
PositiveLloyds Banking Group has continued to execute its previously announced share buyback programme, purchasing a total of nearly 98.5 million ordinary shares between 5 and 9 October 2026 through Goldman Sachs International. The purchases were made at pri...
Lloyds Director Chris Vogelzang Joins Adyen Supervisory Board
PositiveLloyds Banking Group has disclosed that independent non-executive director Chris Vogelzang has joined the Supervisory Board of Adyen N.V., the Dutch payments firm listed on Euronext Amsterdam, following shareholder approval at Adyen’s recent ex...
Lloyds Banking Group Advances Share Buyback with Planned Share Cancellation
PositiveLloyds Banking Group has continued executing its previously announced share buyback programme, purchasing more than 143 million ordinary shares between 28 September and 2 October 2026 through Goldman Sachs International. The shares, acquired at price...
Lloyds Banking Group Issues New Shares for Employee Plans
NeutralLloyds Banking Group has issued 4,522,400 new ordinary shares of 10p each to satisfy awards under its employee share plans, with the new stock admitted to trading on the Main Market of the London Stock Exchange. The additional shares, issued between...
Lloyds Banking Group Confirms Voting Share Capital for FCA Disclosure
NeutralLloyds Banking Group has confirmed that, as of 30 September 2026, it has 57,595,621,161 ordinary shares of 10p each in issue carrying full voting rights at general meetings. The tally includes shares represented by American Depositary Receipts, and t...
Lloyds Banking Group Ramps Up Share Buybacks and Plans Share Cancellations
PositiveLloyds Banking Group has continued executing its previously announced share buyback programmes, repurchasing tens of millions of ordinary shares between 21 and 25 September 2026 through Goldman Sachs International. The purchases were made at prices m...
Lloyds Banking Group Completes £1.75bn Share Buyback
PositiveLloyds Banking Group has completed a £1.75 billion share buyback programme, first announced in January 2026 and managed by Goldman Sachs International. Between 30 January and 24 September 2026, the bank repurchased 1,712,662,647 ordinary shares,...
Lloyds Banking Discloses Director Dividend Reinvestment Share Purchase
NeutralLloyds Banking Group has disclosed a share transaction involving non-executive director Catherine Woods and her closely associated person, James Woods, in line with UK Market Abuse Regulation requirements. The pair acquired 1,810 ordinary shares in a...
Lloyds Banking Grants Sharesave Options to Top Executives as Wealth CEO Trims Stake
NeutralLloyds Banking Group has granted options under its all-employee Sharesave Scheme 2017 to senior executives William Chalmers, Amanda Murphy and Jasjyot Singh at an option price of 99.52 pence per ordinary share. The awards, covering between 7,813 and...
Lloyds Accelerates Share Buybacks and Plans Cancellation of Repurchased Stock
PositiveLloyds Banking Group has continued executing its previously announced share buyback programmes, purchasing tens of millions of ordinary shares on the market through Goldman Sachs International over several trading days in mid-September 2026. The grou...
Lloyds Executives Boost Holdings Through Interim Dividend Reinvestment
NeutralLloyds Banking Group has disclosed a series of share acquisitions by senior executives through its dividend reinvestment arrangements following payment of the interim dividend for the year ending 31 December 2026.Chief Legal Officer and Company Secre...
Lloyds Banking Group Cancels More Shares After Latest Buyback Round
PositiveLloyds Banking Group is one of the U.K.’s largest banking groups, providing retail and commercial banking, insurance and wealth management services under brands including Lloyds Bank, Halifax and Bank of Scotland. The group is a major player in...
Lloyds Banking Group Details Executive Share Incentive Transactions
NeutralLloyds Banking Group has disclosed routine share acquisitions by several senior executives under its Share Incentive Plan, involving ordinary shares of 10 pence each. The transactions, all recorded on 9 September 2026 outside a trading venue, covered...
Lloyds Banking Group Chief Risk Officer Sells 4 Million Shares
NeutralLloyds Banking Group has disclosed that Chief Risk Officer Stephen Shelley sold a total of 4,000,000 ordinary shares on 9 September 2026, at an average price of about 110.98 pence per share on the London Stock Exchange. The group noted that, even aft...
Lloyds Banking Group Cancels Fresh Tranche of Share Buybacks
PositiveLloyds Banking Group has continued executing its share buyback strategy, purchasing roughly 37.6 million ordinary shares between 1 and 4 September 2026 through Goldman Sachs International. The trades, carried out under the buyback programme launched...
Lloyds Banking Group Issues New Shares to Fund Employee Awards
NeutralLloyds Banking Group has issued 2,535,129 new ordinary shares of 10p each to satisfy awards under its employee share plans, admitting them to trading on the Main Market of the London Stock Exchange under existing block admissions. Following this issu...
Lloyds Banking Group Cancels 67 Million Shares in Ongoing Buyback
PositiveLloyds Banking Group has continued to execute its existing share buyback programme, repurchasing a total of 67,105,970 ordinary shares between 24 and 28 August 2026 through Goldman Sachs International. The purchases, made at volume-weighted average p...
Lloyds Banking Group Confirms Total Voting Share Capital for Disclosure Purposes
PositiveLloyds Banking Group has confirmed that, as of 28 August 2026, it has 57,994,703,389 ordinary shares of 10 pence each in issue, all carrying voting rights at general meetings and including those represented by American Depositary Receipts. The bank r...
Lloyds CFO William Chalmers Sells 9.1 Million Shares but Remains Above Holding Requirement
NeutralLloyds Banking Group disclosed that its Chief Financial Officer, William Chalmers, has sold 9.1 million ordinary shares in the bank at an average price of about 111.59 pence per share on 27 August 2026. The transaction was carried out on the London S...
Lloyds Banking Group Adds Former Netflix CMO Kelly Bennett to Board
PositiveLloyds Banking Group has appointed Kelly Bennett as an independent non-executive director, effective 1 September 2026, adding deep consumer engagement and digital platform expertise to its board. Bennett’s background includes serving as Chief M...
Lloyds Banking Group Advances Buyback with £60m Share Repurchase
PositiveLloyds Banking Group has continued its existing share buyback programme by repurchasing a total of about 60.7 million ordinary shares between 17 and 21 August 2026 at prices ranging roughly from 109.35p to 115.60p. The bank said these shares, bought...
Lloyds Banking Group Cancels 42 Million Shares Under Ongoing Buyback
PositiveLloyds Banking Group has executed share repurchases totalling 42 million ordinary shares between 10 and 14 August 2026 under its buyback programme announced on 30 January 2026. The shares, acquired via Goldman Sachs International and not under the ne...
Lloyds Banking Group Discloses Routine Executive Share Awards Under Incentive Plan
NeutralLloyds Banking Group has disclosed routine share transactions by several senior executives under its Share Incentive Plan, involving the monthly acquisition of partnership shares at £1.1515 and the award of matching shares at no cost. The notifi...
Lloyds Banking Group Cancels 24 Million Shares in Ongoing Buyback
PositiveLloyds Banking Group has continued its share buyback activity, purchasing a total of 24 million ordinary shares between 3 and 7 August 2026 through Goldman Sachs International under an existing repurchase programme. The purchases were executed at vol...
Lloyds Banking Group Issues Over 6.6 Million Shares for Employee Plans
NeutralLloyds Banking Group has issued 6,657,090 ordinary shares of 10p each to satisfy awards under its employee share plans, with these new shares admitted to trading on the Main Market of the London Stock Exchange. Following this issuance, the total numb...
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.
Date of analysis: Aug 03, 2026