Lloyds Banking Group (LON:LLOY) Announces Quarterly Earnings Results

Key Points

• Lloyds reported quarterly EPS of GBX 2.40 on revenue of GBX 478.5bn, roughly a 33% rise in quarterly profit with a return on equity of 9.93% and a net margin of 24.49%.
• The bank is accelerating capital returns via an ongoing £1.75bn share buyback and the cancellation of ~31.1m shares, which supports EPS and shareholder returns.
• Shares climbed about 2.7% to GBX 99.69 and analysts hold a "Moderate Buy" consensus with an average target of GBX 113.44, but management warned of an Iran‑war related charge and potential bank tax/regulatory risks that could weigh on future profitability.

Lloyds Banking Group (LON:LLOY - Get Free Report) posted its quarterly earnings data on Thursday. The financial services provider reported GBX 2.40 EPS for the quarter, Digital Look Earnings reports. Lloyds Banking Group had a return on equity of 9.93% and a net margin of 24.49%.The company had revenue of GBX 478.50 billion during the quarter.

Lloyds Banking Group Trading Up 2.7%

LLOY traded up GBX 2.64 during mid-day trading on Thursday, hitting GBX 99.69. 265,518,531 shares of the stock were exchanged, compared to its average volume of 198,028,250. The company has a market cap of £58.34 billion, a PE ratio of 14.45, a PEG ratio of 1.84 and a beta of 0.94. Lloyds Banking Group has a 1-year low of GBX 69.70 and a 1-year high of GBX 114.60. The firm's fifty day moving average is GBX 98.23 and its two-hundred day moving average is GBX 96.92.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on LLOY. Barclays upped their price target on Lloyds Banking Group from GBX 100 to GBX 120 and gave the company an "overweight" rating in a research report on Wednesday, January 7th. Royal Bank Of Canada reiterated an "outperform" rating and issued a GBX 120 price objective on shares of Lloyds Banking Group in a report on Thursday. Shore Capital Group reiterated a "sell" rating on shares of Lloyds Banking Group in a report on Thursday. Citigroup upped their price objective on Lloyds Banking Group from GBX 114 to GBX 123 and gave the company a "buy" rating in a report on Thursday. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on Lloyds Banking Group to GBX 125 and set a "buy" rating on the stock in a report on Tuesday, February 3rd. Six investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Lloyds Banking Group currently has an average rating of "Moderate Buy" and a consensus target price of GBX 113.44.

Lloyds Banking Group News Summary

Here are the key news stories impacting Lloyds Banking Group this week:

• Positive Sentiment: Q1 results beat expectations — Lloyds reported a c.33% rise in quarterly profit and GBX 2.40 EPS, with revenue of GBX 478.5bn and improved margins, reinforcing the bank’s outlook. Lloyds Bank reports 33% rise in profit, warns of Iran war impact
• Positive Sentiment: Capital return acceleration — Lloyds is executing an ongoing £1.75bn buyback (recent tranche purchases) and recently cancelled ~31.1m shares, which reduces share count and supports EPS. Lloyds Deepens Capital Return With Ongoing £1.75bn Share Buyback
• Positive Sentiment: Broker support and higher targets — Citi raised its price target to GBX 123 (buy), Jefferies reaffirmed buy at GBX 125, and RBC kept an outperform with GBX 120, adding analyst tailwind. Broker views — price target updates
• Positive Sentiment: Strategic tech tie-up — Exclusive reports say Lloyds is partnering with Google to build AI agents, which could improve customer servicing/efficiency over time. Exclusive: Lloyds in tie-up with Google to build AI agents
• Neutral Sentiment: Voting share capital disclosure — Lloyds updated its voting share capital and disclosure denominator (58,497,706,369 shares), a technical item investors watch for buyback/ESOP maths. Lloyds Banking Group Updates Voting Share Capital and Disclosure Denominator
• Neutral Sentiment: Guidance reiterated — Management reiterated 2026 guidance after the quarter, signalling steady outlook despite macro uncertainties. Lloyds posts strong Q1 and reiterates 2026 guidance
• Negative Sentiment: Iran war hit and macro warning — Lloyds took a charge linked to the Iran war and warned the conflict could weigh on the UK economy, introducing earnings uncertainty ahead. Lloyds Posts Record £2 Billion Profit But Takes Iran War Hit
• Negative Sentiment: Regulatory/tax risk — Lloyds publicly warned about potential bank tax proposals (“industry ripe for cash grab”), which could pressure future profitability or return-of-capital plans if enacted. Lloyds fires bank tax warning shot as industry ‘ripe for cash grab’
• Negative Sentiment: Some broker divergence — Shore Capital reaffirmed a “sell”, highlighting that not all analysts are convinced valuation/risks are fully priced. Broker views — Shore Capital sell

About Lloyds Banking Group

We are the largest UK retail and commercial financial services provider with over 25 million customers and a presence in nearly every community. The Group's main business activities are retail and commercial banking, general insurance and long-term savings, provided through the largest branch network and digital bank in the UK, with well recognised brands including Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows. Our shares are quoted on the London and New York stock exchanges and we are one of the largest companies in the FTSE 100 index.

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