Wednesday preview: Lloyds reports third quarter trading update

Lloyds Banking Group reports its third quarter trading update on Thursday as the bank undergoes a major restructuring.

Earlier in October, the bank announced plans to slash 1,230 jobs as part of its overhaul to reduce costs and improve returns for shareholders. The lender first announced that it was cutting 9,000 jobs in October 2014.

Its third quarter update will be scrutinised closely for the progress made on the restructuring along with how well the bank has fared since the Brexit vote.

“Investors should expect to see PPI claims still being a drag while assets and the loan portfolio will still be written off,” said Graham Spooner, investment research analyst at The Share Centre.

“The current state of low interest margins will hurt them more while we should expect to see further branch closures.”

Deutsche Bank expects underlying pre-tax profit for the third quarter of about £2bn, little changed from the second quarter and up slightly on a year ago. Analyst David Lock has said he predicts a “relatively quiet” third quarter update.

"Credit quality appears to have been robust in third-quarter 2016, margins we expect to fall slightly quarter-on-quarter (but continue tracking to guidance of around 270 basis points (bps) for 2016), while the movement in pension deficit (and therefore equity and common equity tier one [CET1]) offers the most potential for uncertainty (a PPI charge should not be surprising given time-bar expansion).”

Wednesday 26 October

INTERIMS
JZ Capital Partners Ltd

INTERIM DIVIDEND PAYMENT DATE
BBGI SICAV S.A. (DI), Equiniti Group , Quarto Group Inc.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
GFK Consumer Confidence (GER) (07:00)
MBA Mortgage Applications (US) (12:00)
New Homes Sales (US) (15:00)

Q3
Antofagasta, GlaxoSmithKline, Torchmark Corp., X5 Retail Group NV GDR (Reg S)

FINALS
Earthport

ANNUAL REPORT
Feedback

IMSS
Lloyds Banking Group

AGMS
AFI Development, Maxcyte (DI/Reg S), Oil & Gas Development Company Ltd GDR (Reg S), Redde, Zibao Metals Recycling Holdings

TRADING ANNOUNCEMENTS
British American Tobacco, Mail.ru Group Ltd GDR (Reg S)

UK ECONOMIC ANNOUNCEMENTS
GFK Consumer Confidence (00:05)