Friday preview: Lloyds Banking Group releases annual results

Lloyds Banking Group releases its annual results Friday - a day after the Royal Bank of Scotland (RBS) unveiled a loss in its 2012 financial statement.

Lloyds Banking Group releases its annual results Friday - a day after the Royal Bank of Scotland (RBS) unveiled a loss in its 2012 financial statement.

Investec analysts have warned investors to steer well clear as it expects the company to report an underlying profit before tax of £2.4bn for 2012 which translates to an attributable loss of £1.8bn.

The broker retained a 'sell' rating for the bank's stocks and issued a target price of 46p.

"Despite a return to modest profitability in 2013 estimate, we then expect tangible net asset value to fall to 55p. Lloyds already trades on 1.0x 2013 estimated tangible net assets value which cannot be justified by our return on equity forecasts of 2.0% in 2013, 6.0% in 2014 and 8.0% in 2015," the company said.

The results come after the Financial Services Authority fined Lloyds Banking Group £4.3m for delaying payment protection insurance (PPI) compensation to up to 140,000 customers.

Firms owned by LBG - Lloyds TSB Bank,Lloyds TSB Scotland and Bank of Scotland - were penalised by the financial regulator over failings in their systems and controls.

Lloyds also recently announced plans to slash a further 940 jobs, bringing the total of redundancies to 31,000 since its takeover of banking and insurance company HBOS in 2009. The move is part of the bank's strategy to turn business around.

The banks' results arrive after RBS revealed it lost £5.2bn for 2012,compared to a deficit of £1.19bn in 2011, blaming fines for LIBOR rigging and mis-selling of payment protection insurance.

INTERIM DIVIDEND PAYMENT DATE

Latchways, Mattioli Woods

QUARTERLY PAYMENT DATE

JPMorgan Claverhouse Inv Trust

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Construction Spending (US) (15:00)

ISM Manufacturing (US) (15:00)

Non-Farm Payrolls (US) (13:30)

Personal Consumption Expenditures (US) (13:30)

Personal Income (US) (13:30)

Personal Spending (US) (13:30)

PMI Manufacturing (EU) (09:00)

PMI Manufacturing (GER) (08:55)

U. of Michigan Confidence (US) (15:00)

Unemployment Rate (EU) (10:00)

Q2

London Mining

GMS

Baillie Gifford Shin Nippon, Victoria Oil & Gas

FINALS

BBA Aviation, Berendsen, Fiberweb, Hammerson, Laird, Lloyds Banking Group, Old Mutual, Rentokil Initial, Rightmove, Taylor Wimpey, William Hill, WPP

EGMS

Investors In Global Real Estate Ltd

AGMS

CQS Diversified Fund Ltd Ord NPV £, Sage Group

UK ECONOMIC ANNOUNCEMENTS

Consumer Credit (09:30)

M4 Money Supply (09:30)

M4 Sterling Lending (09:30)

Mortgage Approvals (09:30)

PMI Manufacturing (09:30)

FINAL DIVIDEND PAYMENT DATE

Gooch & Housego, Noble Investments (UK)

RD

Recommended

Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Three hidden gems from Japan’s overlooked stockmarket
Share tips

Three hidden gems from Japan’s overlooked stockmarket

Professional investor Eiji Saito of JPMorgan’s Japan Small Cap Growth & Income fund picks three promising stocks from Japan's vibrant but under-resear…
13 Sep 2021
Share tips of the week – 10 September
Share tips

Share tips of the week – 10 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
10 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
How you can profit from the power of the grey pound
Share tips

How you can profit from the power of the grey pound

Higher life expectancy and surging asset prices have proved a boon for the baby-boomer generation, which has accumulated vast wealth. Younger generati…
10 Sep 2021