. Lloyds (LSE: lloy) The price of the action has recently bombarded. Over the past year, it increased by 30% and 166% in five years. With an average efficiency of about 4% or 5% during this period, long -term investors finally draw prizes.

Lloyds and the rest FTSE 100 Banks finally shook the spirits of the financial crisis, even if it took over 15 years. Profits are growing, revenues are well, and shareholders are awarded with regular dividends and redemption of shares.

This pattern lasted last Thursday (July 24), when the Lloyds Banking Group recorded sturdy results for half a year. Prior to taxing by June increased by 5% to 3.5 billion GBP, caused by an boost in net income by 6%, supported by the boost in loans and deposits.

FTSE 100 sector revival

Borrowing to customers increased by 11.9 billion GBP to 471 billion GBP, with most of them from retail mortgages. Deposits increased by 11.2 billion GBP to 493.9 billion GBP, helped the influx to savings accounts. The shareholders joined the fun when the management raised a transition dividend by 15% to 1.22 pens per share.

Now I have almost doubled my money since the purchase of these shares in 2023, from a combination of dividend income and an boost in share prices.

It was a confident performance, and CEO Charlie Nunn did not refrain. He said the bank was doing “Great progress” towards growth goals in 2026, providing “More sustainable phrases” for shareholders.

There may be more good news because Chancellor Rachel Reeves looks easier for financial services to make the economy move. Nunn publicly supported movements to reform the rules regarding the ring, which forces banks to separate retail weapons than more risky divisions and facilitate the restrictions of banks offering investment advice for clients.

Despite these positives, the economy remains breakable with sticky inflation of 3.6%, squeezing consumer demand and mortgage price accessibility. As the largest lender of Great Britain, Lloyds is particularly disclosed here. The plus is that higher inflation supports its net interest margins.

The scandal clouds the perspectives

Lloyds has a greater threat. The wrong motor financing scandal can become very costly. Analysts estimate that the account for remuneration in the industry can reach 44 billion pounds if the Supreme Court rules banks, with Lloyds heavily disclosed through the Black Horse Department. On Friday, August 1, it has a report at 16.35.

Until now, Lloyds has only postponed 1.2 billion GBP. It’s far away, which can be required if it becomes the worst. Reeves reportedly considers retrospective regulations to limit damage, but it would be a highly controversial move.

The market does not seem to value at a full risk scale yet. It makes me feel uncomfortable. If the ruling favors Lloyds, his shares may reflect well. If so, they can’t immerse themselves. However, investors seem relatively unwashed. It seems strange to me.

Dividends and potential growth

In the long run I still think that Lloyds’s investment case is sturdy. It provides a lot of income and growth and can take advantage of looser regulations. I do not sell, regardless of this, the Supreme Court. But I would not consider adding to my participation as long as the Supreme Court issued a verdict.