The last time Lloyds Banking Group (LLOY) shares reached PS1 was before the 2008 financial crisis. The bank’s fortunes changed dramatically after a state-backed bailout in the aftermath of the crash, and the share price has struggled to recover since then.

The stock could benefit from a favourable regulatory environment and stronger economic recovery, but both of these factors aren’t yet in place. Furthermore, Lloyds’ reliance on the UK economy makes it vulnerable to interest rate changes. If the Bank of England starts cutting rates, it could compress net interest margins that are critical to its profitability. Learn more

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Despite the challenges, analysts remain positive on the stock. Today, the shares are trading at a relatively attractive price-to-earnings ratio of about 8.5 times forecast 2026 earnings. That’s well below the FTSE 100 average of around 12 times.

Lloyds is a retail and commercial banking group that offers mortgages, credit cards, current accounts, and business banking. The company also offers insurance and wealth management services. The firm is based in the United Kingdom and operates through three segments: retail, commercial banking, and insurance and wealth. eToro is an investment platform and your capital is at risk. Trading foreign exchange and derivatives carries a high level of risk and may not be suitable for all investors. Please ensure you fully understand the risks involved before trading. Never trade money that you cannot afford to lose. See our Terms of Business for more information.