Plans for additional cost savings at Lloyds Banking Group will dominate the start of the banking sector's results season.

State-backed Lloyds Banking Group is reportedly set to announce more major job cuts when it issues a third quarter trading update tomorrow.

There are fears that as many as 9,000 jobs could go over the next three years as part of a digitisation strategy that will also lead to more branch closures.

The announcement is likely to overshadow figures expected to show more progress on a trading front as economic conditions improve. Results are also due from Royal Bank of Scotland on Friday and Barclays on Thursday.

Keith Bowman, equity analyst at Hargreaves Lansdown stockbrokers, said: "Exposure to both the improving UK and Irish economies should again see the bank reporting reduced bad debt impairments."

He added that investors will be looking for comments regarding the potential resumption of dividend payments after more than six years.

Next's third quarter results on Wednesday will give the City a chance to judge whether this year's Indian summer will force the fashion retailer to lower its annual profits guidance.

Last month it said a warmer September led to slower demand for jumpers and coats and meant sales were up 6 per cent in the quarter to the end of October, rather than 10 per cent as forecast.

The business hoped to recover some lost sales but warned that if the warm conditions continued it was likely to cut its full-year profit guidance of between £775million and £815m.

BT's drive to add new subscribers as it battles Sky is expected to bear further fruit when it reports its second-quarter results on Thursday.

However BT is expected to post earnings edging up 0.4 per cent to £1.4bn, as its international business is impacted by the strong pound and the group is hit by regulatory reviews covering access to the telephone and broadband network.