FTSE 100 movers: Lloyds slumps on results; BAE bounces
London’s FTSE 100 was down 2.5% at 5,978.45 in afternoon trade on Thursday, extending earlier losses on the back of dire US GDP data.
Lloyds Banking Group was the worst performer after it set aside a further £2.4bn for bad debts in the second quarter as it swung to a heavy first-half loss and braced for a "significant deterioration" in the economic outlook amid the coronavirus pandemic.
The lender booked a pre-tax loss of £602m compared with a profit of £2.9bn a year ago. Net income fell 11% to £5.4bn. Second quarter revenues fell 21% to £3.5bn, hit by lower demand and weaker interest rates.
Standard Chartered was also down after it increased bad loans provisions to almost $1.6bn in the first half. It reported credit impairments of $611m in the second quarter, up from $176m a year ago and in addition to $956m reported in the first quarter.
Net profit fell 30% to $339m in the quarter, compared with $482m a year earlier. Pre-tax profit fell to $1.63bn in the six months to June 30 from $2.41bn last year, but was higher than the company's own compiled forecast of $1.53bn.
Shares in mining group Evraz fell after it warned of "uncertainty" around output and sales amid ongoing turmoil in oil and gas markets.
On the upside, BAE Systems was the standout gainer on the index after the arms maker said full-year profits would be lower due to the pandemic, but that it expected a good second half as it reinstated dividend payments.
Pharmaceuticals giant AstraZeneca was on the rise after its first-half numbers beat analysts’ expectations.
Pest control and hygiene services company Rentokil gained even after it posted a decline in interim profit as it took a hit from the temporary closure of some businesses due to lockdowns.
Schroders was trading up as its bottom line took a hit during the first half of the year, but the fund manager saw net inflows and assets under management grow despite the challenging environment.
FTSE 100 - Risers
BAE Systems (BA.) 502.60p 5.39%
Whitbread (WTB) 2,298.00p 1.10%
AstraZeneca (AZN) 8,694.00p 0.92%
Taylor Wimpey (TW.) 122.70p 0.41%
Hikma Pharmaceuticals (HIK) 2,135.00p 0.33%
Pearson (PSON) 539.60p 0.00%
Rentokil Initial (RTO) 548.40p 0.00%
Morrison (Wm) Supermarkets (MRW) 186.70p -0.45%
Schroders (SDR) 2,954.00p -0.47%
Sainsbury (J) (SBRY) 189.30p -0.47%
FTSE 100 - Fallers
Lloyds Banking Group (LLOY) 26.28p -7.33%
Legal & General Group (LGEN) 209.00p -7.07%
Standard Chartered (STAN) 394.60p -6.11%
Smith & Nephew (SN.) 1,520.50p -6.11%
St James's Place (STJ) 917.00p -5.89%
Prudential (PRU) 1,109.00p -5.05%
Evraz (EVR) 284.70p -5.04%
NATWEST GROUP PLC ORD 100P (NWG) 105.90p -5.02%
Barclays (BARC) 99.77p -5.00%
Aviva (AV.) 264.30p -4.93%