Lloyds shares up 47% in 12 months; 141p technical target

Lloyds Banking Group shares have gained 47% over the past 12 months and traded around 112.10p after slipping from a year-to-date high of 116p. Some technicians calculate a cup-and-handle chart formation with a measured target near 141p, roughly 26% above the current level.

The bank reported first-quarter net interest income of £3.56 billion, an increase of 8% year on year, and other income of £1.6 billion, up 11%. Operational costs and remediation fell to £2.48 billion from £2.64 billion in the same quarter a year earlier. Lloyds serves more than 28 million customers across brands including Scottish Widows, Bank of Scotland and MBNA.

Higher Bank of England interest rates since the pandemic period have supported banks’ net interest margins, boosting lending profitability for Lloyds. The group has expanded mobile banking features and digital services that have increased transaction volumes and helped contain operating costs.

The bank has been returning capital to shareholders and has reduced its common equity tier 1 (CET1) ratio while remaining within regulatory capital requirements. Dividend per share rose from 2p in 2021 to 3.65p last year.

Broker forecasts compiled by analysts show net income of about £20.2 billion for the current year, rising to £21.7 billion next year and £22.9 billion in 2028. Total costs are expected to increase modestly from roughly £10.11 billion this year to about £10.5 billion by 2028. Annual revenue projections in the same compilation rise from £4.75 billion last year to about £7.78 billion in 2028. Analysts project dividend per share of around 6.12p in 2028.

Technical traders point to a cup-and-handle-like formation on the daily chart. The cup is estimated to have a 23% depth; measuring that distance from the cup’s upper boundary produces a target near 141p. The recent pullback is viewed by these technicians as the handle or consolidation phase. The stock is trading above its 100-day moving average and remains above indicators such as the Supertrend and the Ichimoku cloud.

Analyst forecasts are projections and the chart target is derived from technical measurement rather than fundamental valuation alone. Interest-rate trends and future quarterly results will influence the bank’s performance and market price.