Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Lloyds Banking Group
Q3 earnings from Lloyds Banking Group [LON:LLOY] are out this morning, showing a further £1.8 billion being set aside for PPI claims, but despite this the bank still managed to make some £2.9 billion of profits for the quarter. The company also notes that budget control has helped limited spending, with the full year picture for operating costs expected to be lower than previously forecast. However there is a degree of caution over the outlook for the UK economy and how this could impact performance. As the UK’s largest mortgage lender, the risk here cannot be ignored.
Half year results are out from BT Group [LON:BT] this morning, showing a picture that’s in line with expectations and the full year figures remain on track, too. Revenues are down 1% but with one of the reasons being cited here as ‘the removal of low margin business’, investors may look beyond this. The interim dividend is unchanged.
Royal Dutch Shell
Rounding off with a third blue-chip heavyweight this morning in the shape of Q3 numbers from Royal Dutch Shell [LON:RDSA]. Despite falling oil prices, the business hasn’t suffered in the same way as its peers and against the same period a year earlier, earnings per share have risen by 4%. However it’s not all good news, with a shadow being cast over the pace of the company’s planned share buy back program. Whether this is sufficient to knock any enthusiasm in response to today’s numbers remains to be seen.