Thursday preview: Lloyds reports first quarter interims

Lloyds Banking Group will be in focus on Thursday as it reports its first quarter interims following results from fellow lenders Barclays and Standard Chartered this week.

Deutsche Bank (DB) has pencilled in underlying pre-tax profits of £2.07bn for the first three months of the 2016 financial year. In the first quarter of 2015, the group had reported statutory pre-tax profit of £1.21bn and underlying profit of £2.17bn.

“Our forecasts remain largely unchanged except for dividends where we have reduced, reflecting higher regulatory uncertainty than previously,” said DB analyst David Lock.

"Nevertheless we continue to see Lloyds as a capital return story, forecasting 16.5p of dividends over the next three years, 24% of today’s share price."

In February, Lloyds had reported a 7% fall in annual pre-tax profit to £1.6bn compared to £1.8bn a year ago as the bank increased its provisions for payment protection insurance (PPI) compensation in the year to £4bn.

The further provisions were set aside after the Financial Conduct Authority enforced a 2018 deadline to pay back customers who were mis-sold PPI.

Lock said after a disappointing 2015, DB expects an improvement in 2016. It expects pre-tax profit to rise to £6bn and revenue to climb to £17.76 from £17,63bn.

“The risks are regulatory change (operational risk, mortgage risk weight floors, mortgage lending and industry structure), conduct risk liabilities, negative industry margin trends, loan loss performance, lower economic growth, and uncertainties into the UK referendum in June 2016,” Lock added.

DB has a ‘buy’ rating on the stock with 21% upside on its target price of 82p.

Thursday 28 April

INTERIM EX-DIVIDEND DATE
Barratt Developments, BlackRock Greater Europe Inv Trust, Dunedin Enterprise Investment Trust, Games Workshop Group, McCarthy & Stone, Oxford Technology 3 VCT, Project Finance Investments Limited, Sequoia Economic Infrastructure Income Fund Limited , Wetherspoon (J.D.)

QUARTERLY EX-DIVIDEND DATE
City of London Inv Trust, JPMorgan Claverhouse Inv Trust, Unilever

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Continuing Claims (US) (13:30)
GDP (Preliminary) (US) (13:30)
Initial Jobless Claims (US) (13:30)
Unemployment Rate (GER) (08:55)

GMS
Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)

FINALS
Air Partner, Camellia, Camellia, GameAccount Network, Greka Engineering & Technology Ltd. (DI), Harvey Nash Group, Inspiration Healthcare Group , Oxford Biomedica, U And I Group

IMSS
Lloyds Banking Group

SPECIAL EX-DIVIDEND PAYMENT DATE
Elementis, Foxtons Group , ITV

EGMS
JSC Kazkommertsbank GDR (Reg S)

AGMS
7Digital Group , Aberdeen UK Tracker Trust, Admiral Group, AFC Energy, Aggreko, ARM Holdings, Barclays, Berendsen, BlackRock World Mining Trust, Cobham, COLT Group SA, CRH, FDM Group (Holdings), Globaltrans Investment GDR (Reg S), Gresham Computing, H&T Group, Henderson Group, LSL Property Services, Manx Financial Group, Pendragon, Servelec Group , Shire Plc, SpaceandPeople, Sphere Medical Holding, Synthomer, Taylor Wimpey, Tullow Oil

TRADING ANNOUNCEMENTS
Aggreko, Berendsen, Cobham, Howden Joinery Group, Howden Joinery Group, Kaz Minerals , Lloyds Banking Group, Pendragon, Schroders, Taylor Wimpey, Weir Group, WPP

UK ECONOMIC ANNOUNCEMENTS
Nationwide House Price Index (07:00)

FINAL EX-DIVIDEND DATE
Action Hotels, Capital Drilling Ltd. (DI), Cenkos Securities, Churchill China, Cobham, Elementis, Eurocell , Foxtons Group , G4S, Henry Boot, Highland Gold Mining Ltd., Hostelworld Group , Informa, Invesco Perpetual UK Small Companies Inv Trust, ITV, Legal & General Group, McColl's Retail Group , Merlin Entertainments , Microgen, Mobeus Income & Growth Vct, Morgan Sindall Group, National Express Group, Octopus AIM VCT 2, Polypipe Group , Porvair, Rathbone Brothers, Regus, Relx plc, Senior, SIG, Smart Metering Systems, Spirax-Sarco Engineering, StatPro Group, SThree, Travis Perkins, Tullett Prebon, UBM, Weir Group, William Hill

Q1
First Quantum Minerals Ltd.