Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
IAG
Half year results have been published by IAG LON:IAG this morning, the owner of airlines including British Airways and Aer Lingus. Passenger revenues are off by 60%, leaving the company nursing a £4bn loss after accounting for exceptional items. One stand-out is the cargo revenue, which has risen by 10% and the company has also advised the market that it will be looking to raise up to EUR2.75bn in fresh capital. Expectations are that it will take until 2023 for passenger demand to return to what was seen last year and with uncertainty still looming, the company is not providing guidance for the full year.
London Stock Exchange Group
London Stock Exchange Group [LON:LSE] has also published interim results this morning, showing a resilient performance for the company. Revenues have risen 4% whilst lower costs of sales have helped drive profits some 7% higher. The company has adapted well to the unprecedented conditions seen in recent months, maintaining a business as usual stance. In line with the stated dividend policy, an interim dividend worth one third of last year’s payment has been declared.
Natwest Group
Royal Bank of Scotland LON:NWG – which rebranded as NatWest earlier this month – has published its half year numbers today, too. In line with other UK lenders, the bank has set aside a significant sum – some £2bn – to account for losses expected off the back of the COVID crisis. Income over the last three months was unchanged, although this was lower than consensus analyst forecasts.
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