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 Bank S.A. 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.
Lloyds will announce its full-year figures on 25 February, and traders are anticipating revenue of £17.77 billion and adjusted net income of £5.92 billion. These forecasts represent a 3.2% fall in revenue and an 8% drop in adjusted net income. The bank will also reveal its second-half numbers on the same date, and investors are anticipating revenue of £8.73 billion and adjusted net income of £2.42 billion, which compares with the first-half revenue and adjusted net income of £8.96 billion and £4.06 billion respectively.
Lloyds is still setting cash aside for the payment protection insurance (PPI) compensation fund, which nearly totals £14 billion. The company is by far the worst offender of the UK banks for mis-selling PPI. October 2018 is going to be the government imposed deadline to claim mis-sold PPI, but at the rate at which Lloyds is setting aside funds, further provisions seem likely.
The bank stated its commercial division was finding trading conditions challenging and total income declined in the latest quarter. Flooding is going to have a negative impact on the insurance side of the business. Westminster has been winding down its stake in the lender, and it hopes to return it to private ownership but the process might be slowed down should the outlook continue to be uncertain.