Analysts Split on Lloyds' Share Price
Analysts remain sharply divided on the future of Lloyds' share price, with year-end forecasts for the UK bank split between a high of 150p and a low of 75p. This wide range highlights significant uncertainty and volatility within the UK banking sector. The divergence underscores the importance of scenario analysis when evaluating financial institutions.
- For the full year of 2025, Lloyds reported a statutory pre-tax profit of £6.7 billion, a 12% increase from the previous year, and announced a share buyback of up to £1.75 billion. - The bank increased its total ordinary dividend for 2025 by 15% to 3.65 pence per share. - Lloyds has upgraded its 2026 forecast, now expecting underlying net interest income of about £14.9 billion and a return on tangible equity to be greater than 16%. - The consensus among 19 analysts is a "Buy" rating for Lloyds' stock. Individual analyst 12-month price targets range from a low of 53p to a high of 130p. - Positive outlooks from analysts are based on strong earnings momentum and a dividend yield of 3.6%. Concerns include uncertainty in the UK's economic forecast, which could reduce loan volumes and increase impairments. - The share price reached 100p in early January 2026, its highest point since September 2008, marking a 90% increase over the prior 12 months. - The UK's economic growth is projected to be modest in 2026, with GDP growth at 0.1% in the last quarter of 2025. The Bank of England may consider further interest rate cuts in 2026. - Lloyds is currently investigating its own controversial use of employee banking data during recent pay negotiations with unions.
