Why These 15 Financial Services Stocks Are Surging In 2025

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12. Lloyds Banking Group PLC (NYSE:LYG)

Number of Hedge Fund Holders In Q4 2024: 11

Lloyds Banking Group PLC (NYSE:LYG) is the United Kingdom’s largest retail and commercial bank, providing a broad range of financial services including mortgages, loans, insurance, and wealth management under brands like Lloyds Bank, Halifax, and Bank of Scotland.

The stock’s strong performance in 2025 has been driven by resilient financial results and optimism about the UK economy. In its Q1 2025 results, Lloyds reported net income up 4% year-over-year, with statutory profit after tax at £1.1 billion.

A major catalyst for the stock’s rise this year has been the UK’s economic resilience, with moderating inflation and wage growth outpacing price increases, which has supported demand for mortgages and consumer finance. The stabilization of the UK housing market and expectations for potential Bank of England rate cuts later in 2025 have also contributed to positive sentiment.

LYG stock is up 49.54% year-to-date.

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