Analysts at Credit Suisse said Lloyds continued to be their preferred lender in the UK, pushing their estimates for its earnings per share further past what the consensus was expecting in the process.
That was despite their forecast for growth in assets at its Insurance&Wealth unit - its new growth engine - below what management was targeting.

In particular, the Swiss broker highlighted the combination of low risk, capital generative retail exposure with upside from an improved macroeconomic backdrop, higher interest rates and falling risk premium as Brexit talks continued to make headway.

There was also the sector-beating yield to go for, they said, which stood at 7.4% as of 2018, but was seen rising to 9.4% by 2019.

They also bumped up their EPS forecasts by 1%, 4%, 6% for over the period between 2018 and 2020, respectively, pointing to Lloyd's improved loan impairment guidance - which put them between 7% and 12% ahead of consensus.

Analysts Claire Kane and David Da Wei Wong further pointed out how despite the consensus marking-up its EPS estimates, the shares had not moved since the lender's strategy update.

On the back of all of the above, they reiterated their 'outperform' recommendation on the shares and 85p target price.

At their target price, and on their estimates, the shares would be changing hands at a price-to-earnings multiple of 12.0.

Regarding Lloyds's Insurance&Wealth unit, Credit Suisse forecast asset growth of £40bn by 2020, beneath management's own target for £50bn.

On the other hand, and should the lender execute to plan, that would add two percentage points to their forecast for the rate of growth in the group's top-line in 2020, "with further upside if margins are more resilient".

Related share prices
Lloyds Banking Group (LLOY) share price