Standard Chartered becomes the second London-quoted but predominantly oversea-focused banking giant to report this week, following in the foot-steps of HSBC.
Nomura thinks there may be risks of estimate downgrades but notes this is true for virtually all banks. In December, Standard Chartered said its income for 2011 is now expected to grow at "just below a double digit rate" after a depreciation in Asian exchange rates against the dollar.
Previously the bank had forecast double digit revenue growth, but it has been hit by Asian exchange rates falling by up to 5% since its third quarter statement.
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The broker will be looking for the bank's view on growth trends and indications for 2012.
Impairments should be less than they were in 2011, and Nomura thinks Hong Kong, Singapore and "Other Pacific Regions" are likely to have put in a good shift, while India and Korea are likely to have been weak.
Income is expected to grow at just below a double-digit percentage rate in comparison with 2010, with growth in the Consumer Banking set to marginally surpass the growth rate of the Wholesale Banking division.
"Asset quality in both businesses remains good and loan impairment for the full year is expected to be below the level seen for the full year 2010. The balance sheet remains well diversified and conservative, with limited exposure to problem asset classes," Charles Stanley's Nic Clarke notes.
Charles Stanley is forecasting profit before tax of $6,842m, up from $6,122m in 2010, and earnings per share of $2.00, up from $1.93. The full year dividend could be increased to 75 cents from 2010's 69.2 cents if the Standard Chartered board is fond of round numbers.
International Airlines Group (IAG), the conglomerate formed by the merger of British Airways and the loss-making Spanish flag carrier Iberia, is set to declare pre-tax profits for 2011 of €369.3m if the investment analyst community is to believed. Revenue is set to hit €16.44bn.
Credit Suisse thinks fourth quarter earnings before interest and tax (EBIT) will be around €38m. which would take the full year figure up to €488m.
As for the current year, "premium demand seems to have started 2012 well on a global basis; however, our uplifted FY12 pax [fiscal 2012 passenger traffic] yield growth forecast of 5% (previously flat) is largely absorbed by combined jet fuel and US$ headwinds," the Swiss broker said, adding that it does not expect significant upgrades following Wednesday's results," particularly given ongoing challenges at Iberia, which could signal a risk of profit taking around the results date."
Continuing the spate of house builders declaring this week, Taylor Wimpey is forecast to declare pre-tax profits of £94.1m on sales of £1,830m.
"Margin recovery remains a key metric for the group and this is assisted by its use of previous land write downs to bolster returns," reckons Northland Capital Partners. The broker thinks the second half operating profit should grow 80% to £88m leaving full year operating profit at around £155m, up 75% on 2010.
Turning to macro data, the GfK consumer confidence index for February is expected to improve marginally to -27 from January's -29.
Also on Wednesday, the Bank of England publishes money and credit data for January. Barclays Capital expects mortgage lending and consumer credit to be slightly stronger, with consumer credit at £0.0bn (consensus £0.2bn, last -£0.4bn) and mortgage lending at £0.8bn (consensus £0.8bn, last £0.7bn). We also expect mortgage approvals to increase to 54.2k (consensus 54.0k, last 52.9k), in part owing to imminent expiry of a tax holiday for first time buyers."
INTERIMS
Ricardo, RSM Tenon Group, Sportingbet
INTERIM EX-DIVIDEND DATE
BHP Billiton, Carclo, Casdon plc, Diageo, Downing Income VCT 3, Hansard Global, Hargreaves Services, Hays, Jupiter Primadona Growth Trust, Kier Group, Ruffer Investment Company Ltd., Utilico Investments Ltd (DI)
QUARTERLY PAYMENT DATE
Polar Capital Global Healthcare Growth & Income Trust
QUARTERLY EX-DIVIDEND DATE
Canaccord Financial Inc., Duet Real Estate Finance Ltd, Premier Energy & Water Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (GER) (07:00)
Beige Book Fed Survey (US) (19:00)
Chicago PMI (US) (13:45)
Consumer Price Index (EU) (10:00)
Crude Oil Inventories (US) (15:30)
GDP (Preliminary) (US) (13:30)
GFK Consumer Confidence (GER) (07:00)
Harmonised Index of Consumer Prices (EU) (10:00)
International Reserves (EU) (11:00)
MBA Mortgage Applications (US) (12:00)
Unemployment Rate (GER) (08:55)
Q2
Sportingbet
Q4
Endeavor International Corp., Norwegian Property ASA
FINALS
ANT, Capital & Counties Properties , Carillion, Endeavor International Corp., Glanbia, GlobeOp Financial Services SA (DI), Henderson Group, International Consolidated Airlines Group SA, Interserve, ITV, Lavendon Group, National Express Group, Restaurant Group, Standard Chartered, Taylor Wimpey, Weir Group
ANNUAL REPORT
Bank Millennium SA
SPECIAL EX-DIVIDEND PAYMENT DATE
easyJet
EGMS
Park Plaza Hotels Ltd.
AGMS
2 ergo Group, ATH Resources, Image Scan Holdings, Sage Group, XCAP Securities
UK ECONOMIC ANNOUNCEMENTS
Consumer Credit (09:30)
GFK Consumer Confidence (00:01)
M4 Money Supply (09:30)
M4 Sterling Lending (09:30)
Mortgage Approvals (09:30)
Trends in Lending (09:30)
FINAL DIVIDEND PAYMENT DATE
Zambeef Products
FINAL EX-DIVIDEND DATE
easyJet, Hazel Renewable Energy VCT 1, Hazel Renewable Energy VCT 2, LPA Group, New Europe Property Investments, Rights & Issues Inv Trust Capital Shares, Rights & Issues Inv Trust Income Shares, Rio Tinto
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