Lloyds Banking price target raised to 123 GBp from 121 GBp at JPMorgan - TipRanks.com

Lloyds Banking Group will pay £829 in compensation to customers mis-sold car finance, totaling £7.5 billion. The bank will participate in the FCA's redress scheme, affecting 12 million UK drivers. The scheme addresses overcharging due to undisclosed commission arrangements between 2007 and 2024.

Lloyds Banking Group (LLOY) shares have risen to 18-year highs, with a 34.1% gain over the past year. The bank reported a 18.4% increase in pre-tax profit, exceeding analyst expectations. Analysts project an 8% upside from current levels, with a total return of 11.6% including dividends. However, the bank's elevated valuation and potential headwinds pose risks.

Bank of America upgraded Lloyds (LLOY) to Buy, raising its price target to 140p, while downgrading Barclays (BARC) to Neutral, cutting its target to 585p. The firm prefers Lloyds' retail focus over Barclays' mixed banking exposure, citing UK competition. Lloyds ADR rose 1.1%, Barclays fell 1.3%.

Lloyds Banking Group repurchased 67.1 million shares at 110 pence each from 24-28 August 2026, part of its capital management strategy. The shares will be canceled, reducing the total in issue and potentially benefiting remaining shareholders. No shares were bought under a separate program announced on 31 July 2026.

FTSE 100 reached 10,979 after Bank of England held rates at 3.75%, with a 7-2 vote. Rolls-Royce rose 3% on upgraded guidance, reporting £2.534bn H1 operating profit. Lloyds Banking Group beat Q2 estimates, launching a £1bn buyback. Shell gained 1.4% on earnings beat, while Rentokil fell 17% on missed targets.

Lloyds Banking Group (LYG) reported first-half statutory profit after tax of GBP 3.1 billion (17.1% return on tangible equity) and net income of GBP 9.7 billion, up 9% year over year, with interim dividend of 1.58p (+30%) and a GBP 1 billion share buyback. Q2 net interest margin rose to 322 bps. Management outlined the Accelerate 2030 plan and targets including CET1 of 13% and structural hedge income above GBP 9 billion by 2030.