Nomura has reiterated its 'reduce' rating and 35p target price for UK banking group Lloyds, saying that the core business are shrinking."The Lloyds interim results and the key features were similar to our expectations and we expect these trends to be mirrored by other UK banks and to be sustained for the foreseeable future. "Revenue and margin trends remain weak and we expect this will be an industry feature while interest rates remain low and private sector deleveraging continues."Despite this, these revenue trends are being offset by cost control and particularly the improvement in impairments, "which continues to surprise positively", the broker said.Underlying profit before tax (PBT) came in a £1,064m, slightly above the £1,029m consensus estimate and Nomura's £966m forecast. However, revenue was weak at £9,246m well below the £9,575m consensus estimate and Nomura's £9,368m forecast."Core revenues and PBT are falling and we are also uncertain as to whether core is meaningful as a measure of value, as over half of current non-core assets will ultimately be folded back into core. If we put the revenue miss into 2015 estimates, this implies a c.10% downgrade to earnings per share". By 11:26 on Thursday, shares were down 0.72% at 29.5p.BC