08:28 AM EDT, 10/30/2026 (MT Newswires) -- Berenberg lowered its price target and earnings forecasts for Lloyds Banking Group (LLOY.L) as analysts noted a competitive near-term outlook for the British bank's net interest income following its third-quarter results. "While Lloyds' Q326 results did not differ materially from consensus, the near-term outlook for net interest income (NII) appears somewhat more constrained than initially expected. Lloyds expects competitive pressures to be sustained, both on the asset and liability side, adding pressure to NII growth," according to a Friday note. "Management narrowed FY26 NII guidance to 'modestly above GBP14.9bn' and said that NII growth in 2027 will be slower than in 2026, as deposit competition remains intense and asset-side margin pressure persists across mortgages and unsecured lending," the research firm added, noting that it now forecasts a net interest income of 14.94 billion pounds sterling in 2026 and 16.19 billion pounds in 2027, between 1% and 2% below consensus. As such, Berenberg reduced its EPS estimates for 2026 through 2028, largely due to lower net interest income growth expectations. Analysts also lowered their price target to 1.17 pounds from 1.21 pounds. The stock's hold rating was maintained.

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