UBS expects Lloyds Banking Group (LON:LLOY) to post an ‘uneventful set of numbers’ when it updates investors on its third-quarter performance next week, Proactive Investors reports. The bailed-out lender is scheduled to report results on Thursday, a day after blue-chip peer Barclays. RBS (LON:RBS) reports on Friday, while Asia-focused HSBC (LON:HSBA) and StanChart (LON:STAN) will follow on October 29 and October 31, respectively.
Lloyds’ share price has fallen deep into the red in today’s session, having given up 1.30 percent to 56.25p as of 13:37 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.34 percent higher at 7,050.63 points.
Lloyds results preview
Proactive Investors reported today that UBS expects Lloyds to report “uneventful set of numbers despite the trees to be felled and ink spilled poring over the figures”. The analysts forecast pre-tax profit of £1.96 billion for the third quarter, including remediation costs of £100 million, compared to profit of £2.08 billion last year. The FTSE 100 lender is further expected to have generated total income of £4.68 billion for the period, up from £4.62 billion last year.
“LBG is, in our view, an undervalued, strongly capital generative bank, operating with a cost advantage in a competitive market and with decent medium-term growth opportunities in lending, savings, investments and general insurance,” the broker concluded.
Analyst ratings update
UBS, which sees Lloyds as a ‘buy,’ set a price target of 80p on the shares this week. According to MarketBeat, the FTSE 100 lender currently has a consensus ‘buy’ rating and an average price target of 76p.
Lloyds meanwhile could face a fresh legal challenge with the Serious Fraud Office reportedly considering a new investigation into the multimillion-pound fraud at its HBOS’ Reading division.