- Lloyds stock has been on a steady ascent for much of the year, gaining over 60% year-to-date. Does it have fuel for the remainder of the year?
Lloyds stock (LSE: LLOY) has quietly become a popular choice in a market that needs consistent performance. Its impressive third-quarter earnings, which came out in late October, showed that revenue grew 7.5% YoY to £5.01 billion and beating analysts’ forecasts by £10 million. In addition, Net Interest Income came in at £3.45 billion, translating to a 7% YoY growth. Also, Net Interest Margin went up 3.06% on a quarterly basis.
These figures defied headwinds like a slow UK economy and the bank’s £800 million budget for car mis-selling compensation. As things stand, the bank seems to be perfectly timed to ride the wave of the UK’s slow revival. Below, we discuss the key fundamentals at play currently, risks and growth outlook.
Lloyds Stock Q4 Growth Outlook
Can the momentum on Lloyds Bank share price last till the end of the year? The consensus among most analysts is yes. The average price estimate from 18 experts on Investing.com is 93.5p, but some are more optimistic and say it may go as high as 110p. That means it could go up 5% to 20% from the 89.4p current price.
Dividends are another reason to buy, and Yahoo Finance projects that they will be up 13% to 3.58p a share, giving a juicy 4.3% yield. Meanwhile, if the Bank of England lowers rates even further, demand for mortgages might keep the economy growing. Lloyds appears to be in a strong position to make more gains as long as the economy remains stable.
Lloyds Bank Valuation and Risks
But is Lloyds Bank worth what it costs? The Motley Fool reports that the stock is trading at around 12.1x trailing P/E for the year. The forward P/E, on the other hand, reduces to about 9.3 (2026 projection), which makes it appealing to investors who want to make a profit. With a market cap of £52.8 billion and a good dividend projection, it’s a good deal assuming growth stays constant. However, some people say it’s stretched following the recent rally, so timing is important.
There are serious risks, though. A major worry is that it depends too much on the UK economy. If the economy at home is weak, the chances of people defaulting on loans could go up. This could be from loans for homes or businesses. Challenger banks are likewise getting more competitive.
A projected slowdown in UK GDP to 0.8% in 2025 could lead to more loan losses. Lloyds’ own Q3 update said that geopolitical uncertainties, changes in regulations, and declining interest rates could hurt net interest profits. This rally might stop in its tracks if the economy continues to struggle.
Lloyds Bank Share Price Forecast
Lloyds stock is at 87.69p, which is below the daily pivot of 88.60p. The first level of support is likely to be at 87.30p, with the second at 86.50p The strongest support is at the 50-day simple moving average at 85.66p. Resistance starts at 89.30p, but a stronger momentum could push the stock to the psychological 90.00p.
Lloyds Bank share price chart on November 4,2025 with key near-term support and resistance levels. Source: TradingView
Lloyds stock has risen by more than60% since January, primarily due to impressive earnings results supported by high UK interest rates which have boosted its net interest margin.
Lloyds reported revenues of £5.01 billion in Q3 2025 revenue. That was an improvement of 7.5% year-over-year and exceeded analyst expectations by about £10 million.
Many analysts say that Lloyds is either undervalued or trading at a fair value. That is because its P/E ratio of 12.1 is currently below market average of 12.5x, its forward P/E ratio is expected to drop to 9.3x in 2026, and its dividend yield is attractive.
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