BofA Tweaks Lloyds Banking Group Forecasts After Q3 Earnings; Price Objective Down

12:05 PM EST, 11/05/2026 (MT Newswires) -- BofA Global Research revised its forecasts for Lloyds Banking Group (LLOY.L) following the British lender's third-quarter earnings report. "Lloyds printed an ok set of Q326 numbers, with income slightly below consensus, but costs coming in slightly better. The most notable piece of guidance management gave was that 2026 NII is now expected to be 'modestly' greater than GBP14.9bn, c.GBP100m below consensus. This primarily reflects higher levels of market competition, which management expects to persist through to 2027," analysts said Thursday. "While this implies lower estimates versus previous expectations, particularly on top of a higher banking surcharge as announced by the government at the Budget, we remain confident in Lloyds' ability to navigate a competitive environment, and fundamentals remain attractive to us." With these in mind, the research firm made changes to its financial projections for 2026 through 2028, including lower EPS and net interest income estimates. The price objective, meanwhile, was edged down to 1.30 pounds sterling from 1.40 pounds, mainly due to increased cost of equity given a higher risk-free rate in the UK, while the stock's buy rating was reaffirmed.