UK Banks Reporting This Week
Third quarter earnings season is well underway in the UK, Europe and the US, and this week sees three of Britain’s largest financial institutions all reporting how they have fared.
Lloyds Banking Group kicks off reporting on Wednesday, followed by Barclays on Thursday before the Royal Bank of Scotland concludes the week’s earnings on Friday.
These earnings releases from these UK banks will provide first indication of the Brexit impact on the most important sector for the UK economy and as a result will have major implications on future economic outlook. Having enjoyed some of the most impressive bounces from the post-referendum lows of late June and early July, will their earnings over the same period reflect the performance of their share price?
In order to prepare you for the release of these all-important earnings, this report will provide an overview of the performance of the banks’ US counterparts, a roundup of analyst expectations for the three earnings releases and a review of the banks’ share price performance over the three month period.
What are Lloyds, Barclays and RBS set to report in the days to come? Will results disappoint or please? Will legal costs and provision for PPI mis-selling still be a feature?
During earnings season, companies that report are normally subject to larger than expected swings in share price as investors and institutions alike digest the range of information provided. Following a positive set of results, it is not unheard of for companies to rally over 5% whilst disappointing figures could provide similar downward price movements.
However, sometimes results may have a surprising impact on share price. A seemingly positive set of results on the surface could provoke a fall in prices on the day. Similarly, a set of results that may appear to be disappointing could provide a share price rally!
In order to help you make sense of the potentially confusing earnings releases, our traders are on hand to provide insight into the nature of the reports from before the opening of markets until the close of play.
Does your current broker give you that kind of attention?
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