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Lloyds Banking Group is trading at 82p, up 5% since the end of October when the bank revealed its third-quarter results. The share price exceeded 86p in January but slipped when the emerging markets’ fears kicked in. The Bank for International Settlements highlighted that European banks have over $3 trillion worth of exposure to emerging markets. If concerns flare up again we could see the banks share price drift lower.
At the beginning of the week, Lloyds put aside another £1.8 billion for the mis-selling of PPI claims, bringing their total provision to £9.8 billion. The bank is still haunted by the scandal.
On a more positive note, the bailed-out bank state it will pay dividends on 2014. The company has not paid a dividend in six years, and investors will be on the lookout for an income stream as well as share price growth.
On Thursday, the bank will announce its fourth-quarter results; the forecast is for a pre-tax profit of £1.1 billion which compares with a third-quarter loss of £440 million. If profits miss expectations we could see the share price drop.