Lloyds Banking Group (NYSE:LYG) Issues Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Lloyds Banking Group (NYSE:LYG) posted its quarterly earnings results on Thursday. The financial services provider reported $0.15 EPS for the quarter, beating the consensus estimate of $0.14 by $0.01, FiscalAI reports. Lloyds Banking Group had a return on equity of 12.56% and a net margin of 28.13%. The firm had revenue of $7.26 billion during the quarter, compared to analysts’ expectations of $7.06 billion.

Here are the key takeaways from Lloyds Banking Group’s conference call:

• Strong financial performance: Nine-month net income rose 9% to £14.8 billion, underlying profit reached £6.6 billion, and Q3 return on tangible equity was 19.5%. Management reaffirmed all 2026 guidance, including ROTE above 16% and capital generation above 200 basis points.
• Net interest income increased 10% year-on-year to £11.1 billion, supported by franchise growth and the structural hedge. Lloyds expects 2026 NII to be modestly above £14.9 billion, with structural hedge income forecast to exceed £7 billion in 2026 and £8 billion in 2027.
• Lending grew broadly across retail and commercial banking, while deposits increased £1.9 billion in Q3. However, management emphasized intense competition in both asset and deposit markets and expects higher rates could slow lending growth.
• Costs remain under control, with the nine-month cost-income ratio at 49.3% and operating costs up only 1% year-on-year. Credit quality was described as strong and stable, with a 25-basis-point asset quality ratio and guidance maintained at around 25 basis points for the full year.
• Management expects the pace of NII growth to slow in 2027 because of continued pricing pressure on loans and deposits, despite ongoing benefits from the structural hedge. Q3 other income was also affected by higher subsidence claims and weaker commercial banking markets income, although executives characterized these pressures as largely temporary.

Lloyds Banking Group Price Performance

Shares of NYSE LYG traded down $0.25 during mid-day trading on Friday, hitting $5.00. 27,392,989 shares of the stock were exchanged, compared to its average volume of 18,980,024. The company has a market cap of $71.99 billion, a P/E ratio of 9.43, a PEG ratio of 0.55 and a beta of 0.91. The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.56 and a current ratio of 1.52. Lloyds Banking Group has a twelve month low of $4.51 and a twelve month high of $6.34. The stock’s fifty day simple moving average is $5.68 and its two-hundred day simple moving average is $5.63.

Analysts Set New Price Targets

A number of research analysts recently commented on LYG shares. Weiss Ratings upgraded Lloyds Banking Group from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, August 21st. Wall Street Zen downgraded shares of Lloyds Banking Group from a “buy” rating to a “hold” rating in a research note on Sunday, September 27th. Keefe, Bruyette & Woods lowered shares of Lloyds Banking Group from a “moderate buy” rating to a “hold” rating in a report on Friday, July 17th. Citigroup restated a “buy” rating on shares of Lloyds Banking Group in a research note on Thursday, July 16th. Finally, Morgan Stanley reaffirmed an “overweight” rating on shares of Lloyds Banking Group in a report on Wednesday, September 2nd. Six analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $6.00.

Lloyds Banking Group Company Profile

Lloyds Banking Group plc is a UK-based financial services group whose American depositary shares trade on the New York Stock Exchange under the symbol LYG. The group provides banking, lending, insurance, pensions and investment services to individuals, businesses and institutional customers.

Its principal brands include Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows. Products and services include current and savings accounts, residential mortgages, personal and business loans, credit cards, commercial banking, asset finance, life insurance, pensions and investment solutions.

Lloyds Banking Group was formed in 2009 through the acquisition of HBOS by Lloyds TSB.