RBC cuts target for Lloyds Banking stock from GBp 124.00 to GBp 115.00

Published on 10/20/2026 at 10:29 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

RBC cited deposit competition on October 16, 2026. Lloyds Banking stock trades at EUR 1.20 on October 20, 2026, 1.64 percent below its Xetra close.

RBC revises its Lloyds view

RBC Capital Markets cut its target from GBp 124.00 to GBp 115.00 on October 16, 2026.
Lloyds reported GBP 9.7 billion of net income for the first half of 2026, up 9 percent year over year.
Lloyds Banking stock trades at EUR 1.20 at 10:17 a.m. CEST at Lang & Schwarz on October 20, 2026, 1.64 percent below the Xetra close of October 19, 2026.
Third-quarter results are scheduled for October 29, 2026.

Architektur-Render eines gläsernen Bürohochhauses in der Londoner City-Skyline — Lloyds Banking Group (GB0008706128) unterhält moderne Bürotürme im Finanzviertel der Stadt London, Illustration mit AI erstellt.

Lloyds Banking (ISIN GB0008706128) was at EUR 1.20 at Lang & Schwarz on October 20, 2026 at 10:17 a.m. CEST, down 1.64 percent from the prior Xetra session. According to Investing.com, RBC Capital Markets cut its rating to Sector Perform from Outperform and lowered its target from GBp 124.00 to GBp 115.00 on October 16, 2026.

Deposit competition drives caution

RBC's concern centers on competition for UK deposits and the possible effect on Lloyds' net interest margin. The firm still expects structural hedge repricing to support net interest income, but its fiscal year 2028 adjusted profit-before-tax forecast is 6 percent below consensus, according to Investing.com.

The downgrade followed a close of GBp 104.85 on the London Stock Exchange on October 16, 2026, according to AskTraders. RBC's new GBp 115.00 target remained 9.67 percent above that closing price, leaving the valuation argument intact even as the rating became more cautious.

What does the downgrade mean for income?

Lloyds entered the debate with stronger first-half operating figures. The group's investor materials show net income of GBP 9.7 billion for the first half of 2026, up 9 percent from the first half of 2025, while statutory profit after tax reached GBP 3.1 billion, up 23 percent. Return on tangible equity was 17.1 percent and the cost-to-income ratio was 50.4 percent, according to Lloyds Banking Group.

Next results arrive October 29

The next scheduled checkpoint is Lloyds' third-quarter results on October 29, 2026 at 7:00 a.m., followed by the management presentation at 9:30 a.m., the company says. The upcoming report will test whether income growth is offsetting pressure from deposit pricing.

Stock stays below the target

Lloyds Banking has a market capitalization of EUR 68.8 billion, while its 52-week range is EUR 0.97 to EUR 1.38 as of October 20, 2026. The combination of strong first-half returns and RBC's downgrade leaves net interest margin and deposit competition as the immediate measures for the next results.

Lloyds Banking stock was trading at EUR 1.20 at Lang & Schwarz on October 20, 2026 at 10:17 a.m. CEST, 1.64 percent below the Xetra close of October 19, 2026 at EUR 1.22. The further course of trading is shown by the continuously updated real-time quote of Lloyds Banking stock.