{
  "id": 14889263,
  "title": "RBC Capital downgrades Lloyds Banking stock rating on deposit competition",
  "url": "https://urgent.news/2026/10/16/rbc-capital-downgrades-lloyds-banking-stock-rating-on-deposit",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-16T06:32:46.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/rbc-capital-downgrades-lloyds-banking-stock-rating-on-deposit-competition-93CH-4953182"
  },
  "original_language": "en",
  "account": "RBC Capital has reduced Lloyds Banking Group Plc's stock rating to \"Sector Perform\" from \"Outperform\" and lowered its price target to GBP1.15. The downgrade is attributed to heightened competition in the UK deposit market, which may impact the bank's net interest margin. Analyst Benjamin Toms notes that the bank's structural hedge repricing could result in a positive tailwind for net interest income. Despite the downgrade, RBC Capital maintains that the stock remains undervalued at the current price of $5.47 and forecasts adjusted profit before tax for fiscal year 2028 to be 6% below consensus. The stock is trading at a P/E ratio of 13.26 and offers a dividend yield of 3.85%. RBC Capital's analysis indicates that the competitive deposit market trend is likely to persist, driven by factors such as quantitative tightening, changes in the M4 money supply, increased competition from National Savings and Investments, and alterations in the economics of holding customer deposits due to tax measures.",
  "summary": null,
  "key_points": [
    "RBC Capital downgraded Lloyds Banking Group rating to Sector Perform",
    "Competition in UK deposit market impacts net interest margin",
    "Stock undervalued at $5.47, adjusted profit 6% below consensus"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}