Friday preview: Lloyds Banking to dip pen in red ink

Thursday's results from fallen banking titan Royal Bank of Scotland showed the difficulties of deciding which numbers to focus on when it comes to massive banking operations, and it is not likely to be much easier when another part-nationalised lender, Lloyds, publishes its figures on Friday.

By MoneyWeek

published 23 February 2012

in Features

For what it is worth, the bank is tipped by the communual voice of the investment analyst community to report a full year pre-tax loss of £355.7m on revenue of £20.6bn, but how "pre-tax loss" is defined is open to interpretation, as evidenced by commentary from Nic Clarke at broker Charles Stanley.

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"This differs from the statutory results as it is before a number of items such as the integration, simplification and EU mandated retail business disposal costs of £1,066m (2010: cost of £1,172m), volatility arising in insurance businesses of -£737m (2010: £110m), amortisation of purchased intangibles -£428m (2010: -£478m), provision in relation to German insurance business litigation of - £175m (2010: £0m), the cost of the £3,200m PPI insurance provision this year and a pension curtailment gain of £1,019m in 2010," Clarke continued.

Nomura says that the things to look out for in Lloyds' results are: any comments made regarding the progress of the Verde sale; comments around the revenue outlook for core and non-core; asset quality trends and any indications of outlook for 2012; any comments made regarding the progress of the Verde sale; comments around the revenue outlook for core and non-core; asset quality trends and any indications of outlook for 2012;

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Friday preview: Lloyds Banking to dip pen in red ink

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