0804 GMT - Lloyds Banking Group should keep performing well in the mid-term given interest-rate expectations and the softening regulatory backdrop, RBC Capital Markets writes, raising its rating on the stock to outperform from underperform. The U.K. Supreme Court's car-finance judgment, which is seen as favourable to lenders, lowers the size of potential compensations for the British bank, which provides this type of loans through its Black Horse arm, analysts write. The bank has already booked a 1.2 billion-pound provision for this and said any changes to it are unlikely to be material. Lloyds should trade at a premium to peers given the strength of its deposit franchise, the sustainability of its earnings--which is supported by its structural hedge--and its relatively attractive total return yield, they add. Shares rise 7.3% to 81.3 pence. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

August 04, 2025 04:05 ET (08:05 GMT)

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