Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Impairments down, interest income stable at Lloyds Banking Group
There’s an interim management statement out from Lloyds Banking Group LON:LLOY this morning, covering the first nine months of the year. The Return on Tangible Equity has posted at 14%, down from 16.6% a year ago. Underlying net interest income is however holding up despite changing market dynamics, down 8% YoY but up 2% over the last quarter. Impairment charges are also markedly lower, coming in at £273m vs £849m. Statutory post tax profits are 12% lower at £3.8bn.
#2. Hit to Reckitt’s nutrition sales smaller than expected
Reckitt Benckiser LON:RKT has its Q3 numbers out as well with the company noting it remains on track to deliver full year targets. Revenue growth has been seen in the Hygiene and Health verticals, but Nutrition has struggled where sales were disrupted by weather events – although the impact was smaller than had been expected. Full year like for like growth remains on target to come in between +1% and +3%.
#3. WPP notes gains in Q3 but challenging quarter to come
And to round off, the advertising giant WPP LON:WPP also issued its Q3 update this morning, noting Q3 revenues up 1.4%. The note highlights some key new account wins for the quarter including Unilever and Amazon and notes that full year guidance remains unchanged – although that includes the caveat that Q4 will be challenging as a result of tougher comparatives and the ongoing macroeconomic backdrop.
