Friday preview: RBS, Pru, US non-farm payrolls

4th Aug 2011 18:31

Royal Bank of Scotland (RBS) brings the banking results season to an end with its interim results, and, as with its fellow part-nationalised lender, Lloyds, provisions for claims related to mis-selling of payment protection insurance (PPI) are likely to cloud the profit picture."We expect an interim pre-tax loss of £2.0bn," Nomura said. "Stripping out PPI and other non-operating charges this would be equivalent to an operating PBT [profit before tax] of £371m in 2Q [the second quarter], down from £1.0bn in 1Q, due to a lower contribution from GBM [Global Banking & Markets]. Assuming loss elimination at Ulster, our 1H estimates would be equivalent to annualised EPS of 4.7p from the ongoing businesses and an RoTE [return on tangible equity] of 9.6%," the broker added.Prudential keeps the insurance results season rolling with its interim figures, which will be released at 5:30am UK time, to catch the Hong Kong and Singapore markets before they close. Charles Stanley is forecasting earnings per share of 17.5p and an interim dividend of 6.61p. "Although the Pru's important Asian sales have been hit by the weaker Indian sales the Pru remains confident that it can achieve its target of doubling its 2009 Asian operating profit by 2013 and generating £300m of cash annually in the region by that year," the broker's Nic Clarke notes. Panmure Gordon, meanwhile, is going for European Embedded Value (EEV) operating profit of £1,803m, up 8% on last year. On an international financial reporting standards (IFRS) basis, operating profit will be around £928m, up 10% year-on-year, the broker reckons. It predicts an interim dividend of 7.95p.On the economic front, the big number is US non-farm payrolls. Economists will be looking for an increase of around 91,000 new jobs in July. In June, payrolls rose by 18,000. INTERIMSBBA Aviation, Brammer, Logica, Old Mutual, Playtech Ltd., Polski Koncern Naftowy Orlen SA GDR (Reg S), Premier Foods, Royal Bank of Scotland Group, Smith & Nephew, Stanley Gibbons Group, William HillINTERIM DIVIDEND PAYMENT DATECareTech Holding, Chemring Group, Heavitree BreweryQUARTERLY PAYMENT DATEInvestors Capital Trust 'A' SharesINTERNATIONAL ECONOMIC ANNOUNCEMENTSBank of Japan Target RateTrade Balance (FRA) (07:45)Industrial Production (GER) (11:00)Non-Farm Payrolls (US) (13:30)Unemployment Rate (US) (13:30)Consumer Credit (US) (20:00)Q2Smith & NephewGMSRubicon Software GroupEGMSMatrix European Real Estate Inv Trust Ltd.AGMSAlpha Tiger Property Trust Ltd., Carpathian, Indian Hotels Ltd. GDR (Reg S), Invesco Asia Trust, Jubilant EnergyTRADING ANNOUNCEMENTSBellwayUK ECONOMIC ANNOUNCEMENTSProducer Price Index (09:30)FINAL DIVIDEND PAYMENT DATEBond International Software, Carphone Warehouse Group, CML Microsystems, Establishment Inv Trust, Fidelity China Special Situations , Halfords Group, Hyder Consulting, Invensys, Monks Inv Trust, Mothercare, Octopus AIM VCT, Shanks Group, TalkTalk Telecom Group , Tate & Lyle, Telecom Plus, Vodafone Group, Workspace GroupINTERNATIONAL EARNINGSAllianz, Washington Post--jh