Contributors to Lloyds Banking Group (LSE: LLOY) has performed well since the Covid-19 crisis in 2020/21. Lloyd's share prices have skyrocketed over five years, as rising interest rates boosted profits for British banks.

Lloyd's jumps

At the time I write this article, Lloyds shares are trading at 87.36p, valuing Blackhorse Bank at £51.7bn. This places it in fourteenth place among… FTSE 100 indexThe largest companies by market value. However, stocks are at roughly the same level they were in mid-2015, more than 10 years ago.

Footsie stock is up 19.8% over six months and is up 60% in 2025. What's more, it's up 56.2% over one year and a whopping 212.7% over five years.

The joy of profits

The above returns do not include dividends – which are regular cash payments from some companies to shareholders. Here are Lloyd's profits over the past four years:

Over four years (excluding 2025), Lloyds paid 10.33p per share in dividends, equivalent to 11.8% of the current share price. These annual payments rose 58.5% from 2021 to 2024.

Of course, future profits are not guaranteed, so they can be reduced or canceled in a short time. However, Lloyds raised its interim dividend for 2025 by 15%, continuing a trend of rising payouts since the coronavirus pandemic.

This is an interesting fact for US growth and investors. The Lloyds share price has almost matched the price of the number one meme stock – Elon Musk's Tesla – Over the past five years. Tesla stock has risen 254% over half a decade, in line with Lloyd's stock returns with dividends invested. (Tesla has never paid a dividend.)

No rough ride from Reeves?

With the share price rising in recent years, Lloyds shares now trade at around 13.3 times trailing earnings, delivering a dividend yield of 7.5%. This comfortably covers the dividend yield of approximately 3.8% per year. To me, this suggests that the shares are not as cheap as they were when my family portfolio bought them in mid-2022 for 43.5 pas.

I'm also a bit concerned about the share price taking a potential tax hit from Chancellor Rachel Reeves. Last year, Reeves caused a headache for British businesses by increasing the National Insurance rate that employers have to pay to HMRC.

This year, the City of London is abuzz with rumors that Reeves has plans to increase the special tax applied to the UK's largest banks. The tax was introduced in 2011 and is expected to raise £1.3 billion for Her Majesty's Treasury in 2025/26.

If Reeves, for example, doubled this tax, it could increase government revenues by more than £1 billion a year from now on. However, in the second half of 2024, the current bank levy has cost Lloyds just £147m. Even if this amount were doubled, it would still constitute a modest additional burden for the bank to bear.

So, to answer the question in my title – no, I don't expect the Budget on 26 November to cause the Lloyds share price to collapse.