High street bank Lloyds (LSE:LLOY) remains one of the FTSE 100‘s strongest performing shares so far in 2025.
Up 42% in the year to date, the Black Horse Bank has swept higher on hopes for interest rate cuts and the subsequent boost this would give the UK economy. The lower the Bank of England base rate, the higher company revenues can potentially climb and the lower the risk from loan impairments. That’s the theory at least.
But interest rate cuts are a double-edged sword for retail banks. They trim net interest margins (NIMs), a key gauge of profitability that measures the difference between the loan interest banks receive and the amount they pay out to savers.
So what are City analysts predicting for the Lloyds share price? And what could a £10,000 lump sum in the Footsie share become a year from now?
Today, a total of 17 brokers currently have ratings on the…
