🏦 Company Overview: Lloyds Banking Group
Lloyds is a UK-based financial services powerhouse, operating across three core segments:
1. Retail Banking
- 66% of loan book is mortgages
- Offers current accounts, savings, credit cards, and personal loans
- Digital-first strategy with revamped mobile app and customer tools
2. Commercial Banking
- Serves SMEs and large corporates
- Provides lending, working capital, transaction banking, and debt capital markets
3. Insurance, Pensions & Investments
- Offers life insurance, retirement products, and wealth management
- Strong cross-selling with retail base
Lloyds is deeply embedded in the UK economy, with a purpose-driven strategy of “Helping Britain Prosper”, and is one of the largest housing finance providers in the country.
📊 Valuation Metrics (as of 4 Sept 2025)
| Metric | Value | Commentary |
|---|---|---|
| Share Price | 79.94p | Up +1.45% today |
| Market Cap | £46.94B | FTSE 100 constituent |
| P/E Ratio (TTM) | 12.07 | Reasonable for UK retail bank |
| Forward P/E | 9.27 | Suggests earnings growth ahead |
| PEG Ratio | 0.60 | Undervalued relative to growth |
| Price-to-Book (P/B) | 1.00 | Fairly valued on asset base |
| Price-to-Sales (P/S) | 2.66 | Reflects strong revenue base |
| Dividend Yield | ~4.05% | Income-friendly profile |
| Return on Equity (ROE) | 9.95% | Solid profitability |
| Beta (5Y) | 1.10 | Slightly more volatile than market |
| EPS (TTM) | £0.07 | Earnings remain stable |
| Net Income (TTM) | £4.05B | Strong bottom line |
| Revenue (TTM) | £17.67B | Broad-based income streams |
🧠 Strategic Highlights
- £1.7B buyback and increased dividend in 2024
- Digital transformation: 30% reduction in data centres, new mobile app
- Sustainability push: £300B mortgage book aligned with housing support
