Tuesday preview: Standard Chartered begins bank earnings week

Standard Chartered will kick off the UK banking industry’s latest earnings season with its first quarter results on Tuesday.

Deutsche Bank forecasts first quarter pre-tax profit of $29m on revenues of $3.7bn and costs of $2.5bn including a further loan impairment of $1.1bn.

The bank sees revenues rebounding from the decline in the fourth quarter as the first three months of the financial year is “typically a stronger quarter”.

Citi, however, said it expects a “weak” quarter for the Asia-focused bank due to market volatility and a slowdown in China’s economy, which could affect fee and trading income.

“Overall, we expect first half group revenues to be down 21% year-on-year, but up 7% half-on-half,” said Citi analyst Ronit Gose.

Citi has forecast a first half pre-tax loss of $533m, with a return to profit in the second half.

While Citi increased its 2016 earnings pert share to 5.5 cents from the previously estimated loss, he cut 2017 and 2018 EPS by 14% and 5% respectively, "mainly due to a slower recovery in revenues and higher investment-related expenses”.

In February StanChart reported an 84% plunge in full year underlying pre-tax profit to $0.8bn, blaming challenging marketing conditions and restructuring charges. Weak emerging market currencies against the dollar also carved into profits.

The bank is the first of many to post first quarter earnings this week with Barclays due to report on Wednesday, Lloyds Banking Group on Thursday and Royal Bank of Scotland on Friday.

Tuesday 26 April

INTERIMS
AB Dynamics, Egdon Resources, Focusrite, Redefine International

INTERIM DIVIDEND PAYMENT DATE
Brooks Macdonald Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence (US) (15:00)
Durable Goods Orders (US) (13:30)

GMS
Fondul Proprietatea S.A. GDR (Reg S)

FINALS
Atlas Mara Limited (DI), Boohoo.com, Cambian Group, Horizon Discovery Group, Redt Energy , Vimetco NV GDR (Reg S)

EGMS
Fondul Proprietatea S.A. GDR (Reg S)

AGMS
Aqua Bounty Technologies Inc. (DI), Byblos Bank SAL GDR (Reg S), Dialight, Equiniti Group , Foreign and Colonial Inv Trust, Fyffes, Harworth Group, Jardine Lloyd Thompson Group, Modern Water, Polar Capital Global Financials Trust

TRADING ANNOUNCEMENTS
British American Tobacco, Carpetright, Jardine Lloyd Thompson Group, Petra Diamonds Ltd.(DI), St James's Place, Standard Chartered

UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage Lending Figures (09:30)

Q1
BP, Torchmark Corp., Standard Chartered