I don’t think it is. The actual economic harm of the UK leaving the EU to the UK and EU economies is yet to work through for an actual hard Brexit. I don’t believe its priced in because no one can really predict it accurately.
If it happens expect all the banks to be depressed somewhat for a while as it all plays out and GDP is lowered in the UK and the EU. It will simply create an environment in which banks don’t do well traditionally, including prolonged periods of low interest rates.
Meanwhile expect more rulings like the recent one that has ruled charging extra for un-arranged overdrafts will be illegal from April 2020. Similar legislation has already limited charges on credit cards, PPI has been shown up as a scam, even though a lot of it was actually legitimate business, similarly with ‘with profits endowments’.
In a slower or regressing economy there will be less business loans to be made with lower interest rates to be earned. The same goes for the mortgage book.
The best ways to make money for LLOY is charging for current accounts - but they can’t risk introducing that on their own. If they get together with the other banks to do it altogether the regulators will crush them for acting as a cartel.
If you’re investing in LLOY and expecting it to make profits like it did in previous years and generations, you have to realise its market is just about to be curtailed from 500m to 65m people as a starting point, and that its remaining market is hostile and has been since the financial crisis.
One thing is certain across banking. Expect a million or more job losses in the near future.