Friday preview: Lloyds Banking, IAG

24th Feb 2011 16:49

After the brouhaha that surrounded Royal Bank of Scotland's disappointing and eye-numbingly detailed full year results it is the turn of another part-nationalised lender, Lloyds Banking , to update the market on Friday. Charles Stanley is predicting a return to profitability, and has a pre-tax profit forecast of £1,800m, compared to a loss of £10,131m the year before. EPS are expected to be 1.8p."The third quarter interim management statement (IMS) was a positive statement from Lloyds Banking Group. The benign state of the economy led to a continued improvement in the impairment experience which, when combined with a better margin, meant that the group expected 'to deliver a good financial performance for the full year'. The references to its funding, costs and synergies were also re-assuring," Charles Stanley said."However, Ireland remains a concern and despite good progress this year we believe the market still frets about the significant amount of wholesale funding that matures in the next couple of years and the potential impact that a weakening UK economy would have on Lloyds given its significant exposure to both UK Retail," the broker continued. Nomura is estimating a group loss before non-operating items of £959m, "much improved on a loss of £12.4bn in 2009, with a much lower impairment charge (£14.25bn versus £24bn).""After the rapid improvements in 2010, we expect the pace of recovery of margins and impairments to slow (additional charges have already been announced for Ireland). This could result in near-term downgrades and a deferral of normalised profit before tax. There was positive read across from Barclays' domestic operations with positive second half revenue and impairment trends," Nomura notes.The results will be the last under the helmsmanship of chief executive Eric Daniels. The first set of results from International Consolidated Airlines Group are likely to be a mish-mash, featuring a nine month contribution from British Airways (BA) and a full-year from Iberia. To make life harder still for investment analysts trying to make like for like comparisons on BA's performance, the results will be in euros. After what is likely to have been a complicated piece of number crunching Morgan Stanley is predicting operating profits of €355m.INTERIMSAsian Citrus HoldingINTERIM DIVIDEND PAYMENT DATEACM Shipping Group, Fletcher King, NCC GroupINTERIM EX-DIVIDEND DATESara Lee Corp.QUARTERLY PAYMENT DATEEquity Partnership Inv Co Income SharesINTERNATIONAL ECONOMIC ANNOUNCEMENTSConsumer Price Index (GER) (07:00)Consumer Spending (FRA) (07:45)M3 Money Supply (EU) (09:00)Gross Domestic Product (US) (13:30)Personal Consumption (US) (13:30)University of Michigan Consumer Confidence (US) (14:55)Q4Hellenic Telecom Industries SA ADSGMSMacquarie Korea Infrastructure Fund GDRSFINALSBerendsen, Brit Insurance Holdings NV (DI), Hellenic Telecom Industries SA ADS, International Consolidated Airlines Group, Lloyds Banking Group, Rank Group, Rightmove, Spectris, Telefonica SA, William HillANNUAL REPORTHuntingSPECIAL DIVIDEND PAYMENT DATEInternational Power, VictrexEGMSAminexAGMSBrewin Dolphin Holdings, TreattTRADING ANNOUNCEMENTSClearStream Technologies GroupUK ECONOMIC ANNOUNCEMENTSGfK Consumer Confidence Survey (00:01)GDP (output, income & expenditure) (09:30)Index of Services (09:30)Exports & Imports (09:30)Total Business Investment (09:30)FINAL DIVIDEND PAYMENT DATEUnited Drug, Victrex, Zytronic