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

Share tips of the week – 28 January
Share tips

Share tips of the week – 28 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
28 Jan 2022
Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Amazon halts plans to ban UK Visa credit card payments
Personal finance

Amazon halts plans to ban UK Visa credit card payments

Amazon has said that it is to shelve its proposed ban on UK customers making payments with Visa credit cards.
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022