RBC cuts Lloyds Banking stock target to GBp 115

Published on 10/19/2026 at 09:24 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Lloyds Banking stock costs EUR 1.23 on October 19, 2026, 0.81 percent below the Xetra close. Third-quarter results are scheduled for October 29, 2026.

RBC target cut and bank results

RBC Capital Markets cut its Lloyds target to GBp 115.00 on October 16, 2026.
Lloyds reported GBP 3.1 billion in statutory profit after tax for the first half of 2026.
Lloyds Banking stock trades at EUR 1.23 at 9:20 a.m. CEST at Lang & Schwarz on October 19, 2026, 0.81 percent below the Xetra close of October 16, 2026.
Third-quarter results are scheduled for October 29, 2026.

Pop-Art-Comic zeigt Bankangestellte im freundlichen Gespräch mit Kunde am Schalter — Lloyds Banking Group (GB0008706128) bedient Privatkunden am Schalter, humorvoll im Pop-Art-Comic-Stil illustriert, Illustration mit AI erstellt.

Lloyds Banking stock (ISIN GB0008706128) was trading at EUR 1.23 at Lang & Schwarz on October 19, 2026 at 9:20 a.m. CEST, minus 0.81 percent versus the Xetra close of October 16, 2026 at EUR 1.24. According to Yahoo Finance on October 16, 2026, RBC Capital Markets downgraded Lloyds Banking Group from outperform to sector perform and cut its target from GBp 124.00 to GBp 115.00.

Deposit competition drives caution

RBC linked the downgrade to tougher competition for UK customer deposits and pressure on lending margins. The broker also cut its 2028 pre-tax profit estimate by 6 percent below consensus and reduced its 2027 loan-growth forecast to 2.9 percent from 3.9 percent, according to Yahoo Finance. The assessment puts net interest income at the center of the debate because deposit pricing can reduce the benefit from Lloyds' structural hedge.

Three target changes mark the timeline

MarketBeat reported that JPMorgan lifted its target to GBp 123.00 from GBp 121.00 on September 15, 2026. Lloyds published first-half 2026 figures on July 30, including GBP 3.1 billion in statutory profit after tax, up 23 percent from the prior year, according to Lloyds Banking Group. RBC's October 16 target cut to GBp 115.00 is the latest of the three dated changes.

What does the target cut mean?

The lower target contrasts with Lloyds' first-half return on tangible equity of 17.1 percent and its 2026 guidance for more than 16 percent, both reported by Lloyds Banking Group. The bank also reported GBP 1.9 billion of total capital return for the first half, including a GBP 1 billion buyback. For investors, the key tension is whether deposit competition slows income growth before the hedge benefit fully supports margins.

Next reporting date is October 29

Lloyds' next scheduled event is its third-quarter results on October 29, 2026. The investor-relations page says the release will be published at 7:00 a.m., followed by a presentation at 9:30 a.m., according to Lloyds Banking Group.

Stock price and valuation context

The current euro quote is EUR 1.23, while the primary-market 52-week range is EUR 0.97 to EUR 1.38 as of October 19, 2026. Market capitalization is EUR 70.9 billion. These levels frame the analyst debate without resolving the margin question.

Lloyds Banking Group was trading at EUR 1.23 at Lang & Schwarz on October 19, 2026 at 9:20 a.m. CEST, minus 0.81 percent versus the Xetra close of October 16, 2026 at EUR 1.24. The further course of trading is shown by the continuously updated real-time quote of Lloyds Banking stock.