Lloyds share price had a strong performance in the first half of 2025, mirroring the performance of other European banks. It jumped by 45% in the year’s first half, reaching a high of 79.10p, the highest level in over a decade.
Why LLOY share price jumped
Other European banks did well, with the Stoxx Banking Index jumping by nearly 30% by June 30th. Similarly, top companies like Barclays, HSBC, and NatWest also jumped.
Lloyds Bank did well because of its better-than-expected financial results. It also did well as it continued paying dividends, with yield of 4.09%. The company also continued to repurchase its stock, a move aimed at reducing the outstanding shares and boosting earnings per share.
Lloyds has reduced the number of its outstanding shares from over 70.93 billion in 2021 to 60.4 billion today. This trend will continue this year.
Further, the company has benefited a bit from the resilience of the British economy. The ongoing slow growth was better than the expected contraction. This performance has allowed the Bank of England (BoE) to be more cautious when cutting rates.
Unlike the European Central Bank (ECB), the BoE has cut interest rates twice. It cut by 0.25% in February and again in May this year. Analysts anticipate at least one more cut this year.
Read more: Lloyds share price forecast: here’s why LLOY may surge soon
Lloyds Bank earnings ahead
The next key catalyst for the Lloyds share price will be its second-quarter earnings. In its Q1 statement, the company reported that its underlying net interest income increased to over £3.29 billion, up from £3.18 billion in the previous quarter.
Lloyds Bank’s net interest income has been highly resilient, helped by the central bank decision. With the BoE taking longer to cut, there is a likelihood that its returns will be strong.
Lloyds Bank’s other income rose from £1.34 billion in Q1’24 to over £1.45 billion, a sign that its business was doing well. Most importantly, it did not allocate remediation charges related to the motor insurance crisis.
Analysts are optimistic that Lloyds Bank’s earnings on July 24 will be strong. The consensus view is that the upcoming earnings will show that its revenues rose to $5 billion in the last quarter.
Still, some analysts are warning that the recent year’s bumper results may be short-lived. In a recent note, a Morningstar analyst said this about European banks:
“But the guidance that we saw, especially after full-year and first quarter results, pointed to margin expansion at the thin end but also the impact of lower interest rates not filtering in in a full way into profitability. I am starting to view the sector as relatively fully valued.”
Lloyds share price analysis
LLOY stock chart | Source: TradingView
The daily chart shows that the LLOY share price has been in a strong uptrend in the past few years. It jumped to a high of 79p this year and then pulled back slightly.
The stock remains above the 50-day and 100-day Exponential Moving Averages (EMA). It has formed a bullish flag pattern, a popular bullish continuation sign, comprising of a vertical line and a descending channel.
LLOY has remained above the 50-day and 100-day Exponential Moving Averages. Therefore, the stock will likely continue rising as bulls target the key resistance level at 80p. A move above the resistance point at 85p will signal to more gains to 100p.
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