Just be careful in confusing those 2 things. Loyalty is how loyal a village is to the owner. It goes down when your nobles visit. Moral however is a percentage of how motivated your troops are when you attack. the higher points a player you attack the higher the Moral. The lower points a player has whom you attack, the lower Moral. For instance a 100k player attacking a 3k player is going to have Moral around 30%. This means the smaller players troops will do a lot more damage.