The Lloyds (LSE: LLOY) share price compensates for the suffering it caused investors during and after the financial crisis. It has increased by 160% in three years and 47% in the last 12 months, and above all, dividends. Can his barnstorming continue?

Like all huge ones FTSE100 banks, Lloyds has been boosted by higher interest rates. This allows you to escalate your net interest margin, increasing revenues from recent mortgage loans and other forms of lending.

Why did the FTSE 100 bank do so well?

Lloyds was lucky too. It protects against interest rate volatility, with older, low-yield contracts being continuously withdrawn and reinvested during periods of higher interest rates. This is expected to generate revenues of £7 billion in 2026. Unfortunately, it won’t last forever. At some point, interest rates will likely fall.

The bank has other attractions. Now he has regained his reputation as dividend machine. As a result of all this share price growth, the final yield dropped to a modest 3.25%. However, over the last three years, management has increased the dividend by a generous 15% per pop. This suggests that revenues should continue to grow. Lloyds is currently forecast to return 3.84% in 2026, rising to 4.53% in 2027.

Investors were additionally rewarded with lucrative investments share buybackand take comfort in its solid balance sheet, with today’s CET1 ratio of 13.4, giving it “a solid buffer against financial difficulties”– says the bank.

Despite this great all-round performance, Lloyds still doesn’t look overly pricey. Its forward price-to-earnings ratio is not too demanding at 11.2 times.

However, there are challenges. Problems in the UK economy could limit growth prospects and potentially create bad debt, while problems in the housing market could reduce demand for mortgage loans. Lloyds must also pay a penalty for historic mis-selling of automotive products. £2 billion has been allocated.

Since purchasing Lloyds in May 2023, I have been doing extremely well. Despite these challenges, I am positive about its prospects. But what do financial analysts say?

Where could the stock go next?

Over the last three months, about 21 analysts have rated the stock, with 13 calling it a Strong Buy. There are only two sellers.

Additionally, 19 analysts provided annual price forecasts. The lowest, highest and median are in the table here:

If the most bullish broker is right, Lloyds shares could rise by more than 20% over the next year, with dividends taking center stage. We can dream. But let’s take this median of 8.9%. This would turn a £10,000 investment into £10,890. A projected yield of 4.35% would add another £435, bringing the total return to £11,325, which isn’t bad.

Investing is never guaranteed and instead Lloyds shares could just as easily fall. Although with any luck the dividend should be paid anyway. Ultimately, it’s the long term that matters, and given the profitability, yield, buybacks and bank valuation, I think Lloyd shares are still worth considering today.