Lloyds' headline revenue growth in 2025Q4 was driven by a surge in non-interest income to $47.3B, but this masks a collapse in net interest income to $3.5B and a net interest margin of just 0.4%, down from 2.4% a year earlier.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue composition is highly volatile, with non-interest income swinging from -$4.3B in 2025Q3 to $47.3B in 2025Q4, while net interest income fell 84.3% year-over-year to $3.5B, compressing NIM to 0.4% and pushing the efficiency ratio to 96.1%.
Lloyds reported earnings per share of $0.12, surpassing analyst expectations, and maintains a solid net margin of 24.30%, indicating effective cost control and profitability.
The stock trades at a P/E of 14x, below the peer average of 17.5x and the estimated fair P/E of 19.9x, positioning it as a value play in the financial sector.
Projected revenue growth is 13.39% this year and 7.12% next year, while EPS is expected to rise 44.68% this year and 18.27% next year, underscoring strong earnings momentum.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 29, 2026 | $0.15+7.1% vs $0.14 | $6.8B-3.9% vs $7.1B |
Q3 2026 Jul 30, 2026 | $0.13-7.1% vs $0.14 | $6.7B-2.9% vs $6.9B |
Q2 2026 Apr 29, 2026 | $0.13+18.2% vs $0.11 | $6.5B-2.2% vs $6.6B |
Q1 2026 Jan 29, 2026 | $0.12+9.1% vs $0.11 | $6.5B+0.1% vs $6.5B |
Lloyds Banking Group (LYG) delivered resilient Q3 results, driven by net interest income growth and strong cost control. LYG benefits from a 'higher for longer' UK rate environment, but faces headwinds from higher taxes and ongoing motor finance litigation. Profitability remains robust with a Q3 RoTE of 19.5% and a CET1 ratio of 13.3%, supporting continued shareholder returns.
Lloyds Banking Group plc ( LYG ) Q3 2026 Earnings Call October 29, 2026 5:30 AM EDT Company Participants William Leon Chalmers - Group CFO & Executive Director Conference Call Participants Benjamin Toms - RBC Capital Markets, Research Division Guy Stebbings - BNP Paribas, Research Division Sheel Shah - JPMorgan Chase & Co, Research Division Jonathan Richard Pierce - Jefferies LLC, Research Division Jason Napier - UBS Investment Bank, Research Division Aman Rakkar - Barclays Bank PLC, Research Division Christopher Cant - Bernstein Autonomous LLP Benjamin Caven-Roberts - Goldman Sachs Group, Inc., Research Division Pui Mong - BofA Securities, Research Division Presentation Operator Thank you for standing by, and welcome to the Lloyds Banking Group 2026 Q3 Interim Management Statement Call. [Operator Instructions] Please note, this call is scheduled for 1 hour and is being recorded.
Lloyds Banking Group NYSE: LYG reported statutory profit after tax of £4.8 billion for the first nine months of 2026, as higher net income, controlled costs and stable credit quality supported returns and capital generation.
LONDON, Oct 29 (Reuters) - Britain's Lloyds Banking Group (LLOY.L), opens new tab reported profit before tax for the July-September period of £2.3 billion ($3.
Benchmark LYG against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Lloyds Banking Group plc (LYG)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $5.09 | $73.88B | 9.43 | 157.3% | 9.67% | 12.79% | 3.43% | |
| $22.33 | $75.29B | 6.96 | -6.28% | 26.21% | 10.76% | 3.83% | |
| $15.60 | $31.02B | 3.74 | 13.35% | 34.52% | 14.85% | 10.01% | |
| $87.06 | $299.2B | 10.85 | 5.38% | 35.7% | 13.94% | 3.79% | |
| $47.78 | $156.61B | 15.67 | 13.72% | 18.31% | 10.67% | 1.44% | |
| $34.84 | $65.47B | 9.43 | 6.86% | 22.07% | 9.31% | — |
Lloyds Banking Group plc (LYG) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Lloyds Banking Group plc (LYG) stock FAQ — growth, dividends, profitability & financials explained
Lloyds Banking Group plc (LYG) grew revenue by 62.7% over the trailing twelve months, compared with the twelve months before.
Yes. Lloyds Banking Group plc (LYG) earned $6.04B in net income over the trailing twelve months (a 9.7% net margin).
Yes. Lloyds Banking Group plc (LYG) pays a dividend that yields 3.43% at the current price, a moderate yield.
Lloyds Banking Group plc (LYG) had a return on equity (ROE) of 12.8% over the trailing twelve months. That is in line with the market's typical 10-15%.
Lloyds Banking Group plc (LYG) has a net interest margin (NIM) of 1.4%. NIM has been under pressure due to interest rate environment.
Lloyds Banking Group plc (LYG) has an efficiency ratio of 26.7%. This is excellent, indicating strong cost control.
