Now still a good time to buy Lloyds shares?

Lloyds shares are again at the center of debate on whether the stock still offers value after its nearly 80% rise from 2023 to the start of 2026. The article notes that despite profits momentum, the shares have since been stuck around the £1 level, raising questions about whether the rally has ended. In the first quarter of 2026, Lloyds reported pre-tax profits up 38% year-on-year to £1.63bn, helped by an 8% increase in net interest income to £3.49bn and a 12% rise in other income to £1.27bn. Operating costs fell 2%. Management’s 2026 outlook targets net interest income of around £14.9bn and returns on tangible equity above 16%, supported by a higher-for-longer UK rate environment. The main risk remains the FCA motor finance commission redress scheme, where final costs remain uncertain, alongside macro risks tied to unemployment and consumer credit quality. The average institutional target is 123p.