BANKING giants will dominate the reporting this week, with the City looking out for any Brexit concerns when Lloyds and Barclays deliver their half-year results.
Lloyds Banking Group is expected to bolster profits when its updates the market with its half-year results on Thursday.
The state-backed bank looks set to boost statutory pre-tax profits to £2.35 billion for the first half of the year, up from £1.19 billion over the period in 2015, according to consensus figures.
The consensus figures, which were compiled before the Brexit vote and based on the views of 15 analysts, have pencilled in the bank’s net interest income to edge up to £5.81 billion over the period, compared to £5.71 billion the year before.
However, Deutsche Bank analyst David Lock said the EU referendum outcome may have come too late to impact the results.
He added: “Given that Brexit was late into the quarter, we expect limited impact on results from the referendum decision.
“Instead we think the focus will rest not on second quarter performance, but on management commentary for outlook of margin (sensitivity to lower rates), lending growth (especially consumer finance), dividends and any cost plans.”
Barclays posts its half-year figures on Friday after a better-than-expected results season from its US counterparts. The group will likely have to make big changes to adapt post Brexit, having sold off most of its European operations since the financial crisis.
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