Lloyds Banking Group: Share Price Rally Limits Upside Potential

  • Lloyds reported strong 2Q25 numbers and reaffirmed FY25E guidance, with further improvement expected in FY26E. The gain in Lloyds' share price of 44% so far in 2025 appears to have largely allowed for an expected expansion of the bank's return on tangible equity. FCA motor finance review provisions remain a significant unknown; further charges are possible depending on the Supreme Court's decision.