During the dark days of the pandemic, Lloyds Banking Group (LSE:LLOY) shares were trading close to 26p. Now (20 September), they are changing hands for 111p. This 327% increase is remarkable.

But it’s the future that really matters. So let’s take a closer look at what the City thinks will happen over the next year or so.

A great return

To be honest, I’m fascinated by analysts’ predictions. Why? Because they believe the bank’s shares are 13.5% undervalued and, if their dividend forecasts are correct, the stock’s forward yield is 4.6%.

It means anyone investing £5,000 today could see it grow to £5,675 by September 2027 and, as an added bonus, receive income of £230. That’s a total return…