Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Lloyds reveal Q4 on Thursday

Lloyds is up 5% since third-quarter results were announced in October, but questions remain over PPI compensation.

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.

Lloyds chart

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.