I thought that Lloyds (LSE: LLOY) share price could be good if I buy FTSE100 bank a few years ago, but is that good? It skyrocketed by 75% last year and 120% in two years. What’s going on?

Blockbuster FTSE 100 Shares

This is the type of phrase usually associated with US tech mega-caps such as Metaplatforms, Nvidia Or Tesla. However, within 12 months Lloyds has overtaken them all, as my table shows.

It even beat Meta and Tesla in five years, and the total return is even better because Lloyds paid out significantly more dividends. Sometimes it gives more than 5%. Meta gives 0.33% and Tesla gives nothing. Only Nvidia has overtaken Lloyds in five years with a massive 1,259% growth.

The best turning game

It took Lloyds shares about 15 years to recover from the 2008 banking crisis. Stock prices are usually cyclical and after such a forceful raise, the law of gravity itself suggests that the bank should leisurely down.

When I bought it, the price-to-earnings ratio was about six or seven. Today it is about 14. This is still less than today The FTSE 100 is averaging around 18, but this is no longer a blinding bargain. The price-to-book ratio has also increased on my watch, from about 0.6 to about 1.1. Both numbers suggest that the bank does not have the same recovery potential.

Another change is final profitability. It fell to 3.5%, which is inevitable given the rise in share prices. However, Lloyds increased the interim dividend for 2025 by 15% and therefore intends to maintain the liquidity of earnings. Analysts expect profitability of 3.84% in 2025 and 4.44% in 2026. Meta, Nvidia and Tesla investors will not understand this.

Threat of interest rate cuts

After yesterday’s Budget (November 26), which some analysts call deflationary, hopes are growing for an interest rate cut in December and perhaps three more cuts next year. If true, this would reduce base rates from 4% to 3%. This would be good for consumers and the housing market, but would reduce the net interest margin of immense banks. Analysts watch these metrics closely because they translate into earnings and, ultimately, the stock price. On the plus side, a recovery in the housing market would assist Lloyds, the UK’s largest mortgage lender through its Halifax subsidiary.

The budget did provide relief in one area, with no tax on windfall profits for banks. This result was delayed, so there was little share price reaction.

Given these numbers, I think Lloyds will struggle to grow at the same rate. However, I still see a decent case for long-term investment. This is a domestically focused bank and although the slowly growing UK economy won’t make life any easier, thanks to dividends and share buybacks the total return over time should be positive. Investors may consider buying if they want steady income and gradual growth without the drama of substantial American tech.