Friday preview: Lloyds earnings to be hit by PPI and TSB disposal

30th Apr 2015 15:06

Lloyds Banking Group is expected to report a slide in first quarter earnings on Friday, reflecting provisions for payment protection insurance and TSB disposal costs.Numis predicted £507m statutory pre-tax profit for the bank, down from £1.08bn the previous year, including £500m for PPI and £640m for the cost of selling TSB to Spain's Banco Sabadell.Underlying pre-tax profit is forecast at £1.87bn compared with £1.80bn a year earlier.In March Spain's Sabadell announced that it had agreed a £1.7bn takeover of TSB, which was spun off from Lloyds in 2013 and floated last year. Lloyds was required to sell the unit as part of a condition of its 2008 government bailoutLloyds owned 50% of TSB before the deal with Sabadell was announced. The cost of the disposal includes lost revenues from the fees TSB was paying Lloyds to use its IT systems. It also includes a £450 dowry that Lloyds must pay TSB as part of the transferring of its IT systems over to the Spanish bank.Numis analyst Mike Trippitt expects investor attention to be on net interest margin, which for the last quarter of 2014 was 2.47% and 2.45% for the full year, and operating expenses."Management is guiding to 2.55% for 2015 and we forecast 2.50% for Q115," he said."Management is guiding to an exit cost income ratio of 45% for 2017, with sequential annual improvements between now and then. We forecast 49.6% for 2015."Friday 1 MayINTERIM DIVIDEND PAYMENT DATEGETECH Group, NWF Group, Redrow, Smith (DS)QUARTERLY PAYMENT DATEInvestors Capital Trust 'A' Shares, Mercantile Investment Trust (The), Torchmark Corp., Verizon CommunicationsINTERNATIONAL ECONOMIC ANNOUNCEMENTSAuto Sales (US) (15:00)Construction Spending (US) (15:00)ISM Mfg Index (US) (15:00)ISM Prices Paid (US) (15:00)U. of Michigan Confidence (Final) (US) (14:55)ANNUAL REPORTCambridge Cognition Holdings, Cambridge Cognition HoldingsIMSSCOLT Group SA, Lloyds Banking GroupSPECIAL DIVIDEND PAYMENT DATEBodycote, NextAGMSAer Lingus Group, Capital & Counties Properties , Capital & Counties Properties , Fairpoint Group, Jardine Lloyd Thompson Group, RPS Group, Smurfit Kappa Group, SVG Capital, Virgin Money Holdings (UK)TRADING ANNOUNCEMENTSCapital & Counties Properties , Rentokil InitialUK ECONOMIC ANNOUNCEMENTSConsumer Credit (09:30)M4 Money Supply (09:30)M4 Sterling Lending (09:30)Mortgage Approvals (09:30)PMI Manufacturing (09:30)FINAL DIVIDEND PAYMENT DATEAberdeen UK Tracker Trust, Bodycote, EMIS Group, Essentra, Foreign and Colonial Inv Trust, Journey Group, Maintel Holdings, Pearson, Pennant International GroupQ1COLT Group SA