Lloyds (LSE: LLOY) shares have put on quite a show over the past three years. They’ve climbed from around 42p to roughly 115p in that time.

That’s an increase of almost 175%, which would be a terrific return on its own. But as I’ll show below, that’s not the only financial reward from buying this FTSE 100 bank. The total return is even higher.

I’m pleased to see Lloyds do so well, not least because I bought it myself in 2023 at an average price of around 45p. So I’ve done nicely too. Can it keep this up?

Why has this FTSE 100 stock flown?

Lloyds has benefited from higher interest rates, which allow banks to boost the difference between what they charge borrowers and pay savers. It’s also been successfully expanding fee-generating businesses such as insurance, pensions, and wealth management.

Pre-tax profit jumped another 23% to £4.3bn in the first half of 2026, while the board raised its interim dividend by a generous 30% to 1.58p a share.

There are three big reasons I am still considering buying Lloyds shares today:

• It’s a straightforward way to get exposure to the UK economy and housing market.
• The dividend is generous and management has been steadily increasing it.
• Lloyds is also buying back its own shares. It announced a share buyback programme worth up to £1.75bn for 2026, lifting planned shareholder returns for 2025 to £3.9bn.

There are risks, of course. Here are three to watch out for.

• The UK economy isn’t exactly thriving.
• Lloyds is a major mortgage lender, so a struggling housing market could hurt.
• If interest rates fall at some point, that could also squeeze lending margins.

Then there’s politics. The government already imposes a 3% bank corporation tax surcharge, and there are calls for it to be raised further in the autumn Budget. That would squeeze profits and hit sentiment.

After such a strong run, I expect Lloyds shares to slow a little. With a price-to-earnings ratio of around 16, they’re considerably more expensive than when I bought them. The yield has also fallen to around 3.2%, largely because the share price has soared.

Now let’s return to that £3k investment. That’s climbed to £8,215, based on the share price growth. Which is good. If an investor had ploughed every dividend they’d received back into the stock, my rough calculation suggests their total return would be closer to £9,300. Even better.

Can this bank keep flying?

I think we may have missed the perfect time to buy Lloyds shares. But I still think it’s worth considering for investors seeking long-term growth and income. I might consider drip-feeding money in, taking advantage of any dips. Given today’s uncertain markets, there may be a few.

The aim would be to hold for longer than three years of course. Ideally, much longer, through every phase of the investment cycle. That would give any share price growth and reinvested dividends maximum opportunity to compound and deliver real wealth.

Should you invest £5,000 in Lloyds Banking Group Plc right now?

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Harvey Jones owns shares in Lloyds.