RBC cuts Lloyds target to GBp 115: Lloyds Banking stock slips 1.63 percent

Lloyds Banking (ISIN GB0008706128) stock was trading at EUR 1.21 at Lang & Schwarz at 9:13 a.m. CEST on October 22, 2026, down 1.63 percent versus the Xetra close of October 21, 2026, at EUR 1.23. The latest broker signal came from RBC Capital Markets, which cut its target from GBp 124 to GBp 115 and downgraded the shares to Sector Perform on October 16, 2026, as Yahoo Finance reported.

Three dates frame the stock

On July 30, 2026, Lloyds reported quarterly earnings per share of GBp 4.80, a 26.73 percent net margin and an 11.05 percent return on equity, according to MarketBeat. On September 2, 2026, Jefferies raised its target from GBp 125 to GBp 127 while retaining a Buy rating, the same source reported. On October 16, 2026, RBC cut its target to GBp 115 and moved to Sector Perform, making deposit competition the immediate broker concern.

What does the target cut mean for margins?

RBC's caution centers on UK deposit competition and the effect on net interest income margins. The bank still expects structural hedge repricing to support income, but its forecasts sit 6 percent below consensus adjusted pre-tax profit for fiscal year 2028, according to Yahoo Finance.

Next reporting date is October 29

Lloyds Banking Group will publish its third-quarter 2026 results on October 29, 2026, at 7:00 a.m., followed by a presentation hosted by Chief Financial Officer William Chalmers at 9:30 a.m., according to the Lloyds Banking Group investor page. That release will test whether the first-half performance can offset the margin pressure identified by RBC.

First-half figures set a higher bar

For the first half of 2026, Lloyds reported net income of GBP 9.7 billion, up 9 percent year over year, and statutory profit after tax of GBP 3.1 billion, up 23 percent. The group also reported a 17.1 percent return on tangible equity and reiterated 2026 guidance for underlying net interest income above GBP 14.9 billion, a cost-to-income ratio below 50 percent and return on tangible equity above 16 percent, according to Lloyds Banking Group. The contrast is clear: operating performance improved, while the broker debate has shifted toward how much of that benefit deposit competition may absorb.

Price and broker context

Lloyds Banking stock was trading at EUR 1.21 at Lang & Schwarz on October 22, 2026, at 9:13 a.m. CEST, 1.63 percent below the Xetra close of October 21, 2026, at EUR 1.23. The euro-denominated 52-week range was EUR 0.97 to EUR 1.38, while market capitalization stood at EUR 69.6 billion on October 22, 2026. The further course of trading is shown by the continuously updated real-time quote of Lloyds Banking stock.

Market context: Market report FTSE 100.

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