Lloyds' profits dip, WPP increases billings

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The FTSE 100 is expected to fall 34 points on Thursday morning, giving up almost all the gains from the prior day.

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First quarter results from Lloyds Banking Group revealed a 6% fall in underlying profit to £2.05bn as a reduction in impairment charges and lower costs could not offset a small decline in income. Total income fell 1% to £4.38bn after a 3% increase in net interest income was blotted by a 7% decline in other income stemming from lower insurance proceeds and a continued pressure on fees and commissions that Lloyds said was resilient in the current market conditions.

Advertising and public relations group WPP reported billings of £11.92bn in its first quarter on Thursday, an increase of 8.3% on the same period last year, or 6.7% at constant currencies. Boss Martin Sorrell said first quarter revenue, net sales and profit was “well above budget and ahead of last year”.

The prospect of a British exit from the EU had not affected trading at house builder Taylor Wimpey in the first four months of the year, the company said, adding that underlying demand was “solid” across all the countries it operated in. “Due to our customer base and supply chain being based principally in the UK, together with our strong order book, we are well equipped to react to any potential changes in the market that may be caused by the EU referendum."

Newspaper round-up

Britain’s biggest advertisers have ramped up their fight to introduce greater transparency into how their media budgets are spent by marketing services groups such as WPP, Publicis and Omnicom. The Incorporated Society of British Advertisers, a trade body whose members spend about £10bn a year on marketing communications, warned that media agencies have increasingly been generating profits through controversial business practices that are not visible to their clients. – Financial Times

University College London will sign the biggest loan in British university history on Thursday, borrowing £280m to fund an ambitious expansion and take advantage of a surge in international students. It also marks the biggest construction project at the university since it was established almost 200 years ago and is part of a wave of development projects taking place in campuses across Britain. – Financial Times

International investment into UK commercial property has stalled as widespread market uncertainty ahead of the Brexit vote takes hold, new research has warned, with more than a third of those surveyed blaming the referendum. Research by the Royal Institution of Chartered Surveyors (Rics) found that demand has fallen, particularly in central London, since the fact a European Union referendum would be called was confirmed following last year’s general election result, showing the threat of the vote has affected wider confidence in the UK market. – Telegraph

Boardroom executives of at least five major companies are braced for rows over pay and succession planning when they hold their annual general meetings, at a time of renewed shareholder focus on directors’ pay. More than 25 companies have their AGMs scheduled for Thursday, although before they begin the focus is on FTSE 100 companies – such as Shire Pharmaceuticals, building materials business CRH, Barclays and fund manager Schroders – and FTSE 250 engineer Weir. - Guardian

US close

US stocks ended mostly higher on Wednesday after the Federal Reserve stood pat on interest rates as expected, with only the tech-heavy Nasdaq in the red amid heavy losses for Apple.

The Dow Jones Industrial Average ended up 0.3% and the S&P 500 eked out a 0.2% gain, but the Nasdaq closed 0.5% lower.

The Federal Reserve chose to stay put on policy, leaving the target range for the Fed funds rate at between 0.25% and 0.50%, but left the door open to a rate rise in June.