Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. IAG passenger capacity in Q3 expected to come in at around 45%
British Airways owner IAG [LON:IAG] has published an Interim Management Statement this morning, covering the six months to June 30th. The company remains truly hobbled by the COVID pandemic, with passenger capacity in Q2 being 21.9% of 2019 levels, although this is expected to come in at around 45% in Q3. Q2 losses were just shy of EUR1 billion, although with EUR10.2 billion worth of liquidity available, there’s likely confidence that the airline can ride this out. In light of the ongoing uncertainty, no guidance for the full year is offered.
#2. Pearson full year outlook remains in line with expectations
Educational publisher Pearson [LON:PSON] has issued its half year numbers this morning, noting revenues up by 17% and the business turning a profit of £127m against a loss of £23m for the same period a year earlier. The comparative was of course somewhat impacted by the health pandemic with many global assessment centres shut down last year, although digging a little further back the H1 number for 2019 was £144m, suggesting that the pent up demand hasn’t perhaps delivered the impact some may have hoped for. The company notes that the outlook for the full year remains in line with market expectations.
#3. Nat West Group half year profit ahead of forecasts
Nat West Group [LON:NWG] has posted half year numbers this morning, showing a profit of £2.5billion, well ahead of the forecast £1.8billion. A 3p dividend and a £750m share buyback have been announced and the Return on Tangible Equity has jumped to 11.7%. Defaults remain low as a result of the better than expected economic outlook, so with this in mind the company notes that it has released a further £0.6bn worth of impairment provisions, accounting for much of that profit excess.
That’s it for Three Quick Facts for now. We will be back in mid-August following a summer break.
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