Shares in Lloyds Banking Group (LON:LLOY) have climbed into positive territory in today’s session, holding steady ahead of the lender’s third-quarter results tomorrow. The update will come after blue-chip peer Barclays (LON:BARC) kicked off the banking reporting season today, revealing that litigation and conduct costs had weighed on its pre-tax profits over the first nine months of the year.
As of 14:27 BST, Lloyds’ share price had added 0.82 percent to 56.85p. The shares are underperforming the broader London market rally which has seen the benchmark FTSE 100 index gain 1.12 percent to 7,033.34 points. The group’s shares have lost nearly 16 percent of their value over the past year, as compared with about a 6.7-percent dip in the Footsie.
Lloyds to report results tomorrow
Lloyds is scheduled to report its third-quarter results tomorrow and Proactive Investors reports that UBS expects a flat margin compared to the previous three-month period with “greater uncertainty around volumes”. In the first half, the group’s net interest margin – a measure of profitability – rose to 2.93 percent from 2.82 percent last year.
“LBG has done a good job of managing mix and flow pricing to drive margins higher but at the expense of volumes overall,” the analysts pointed out.
Lloyds results will come after it emerged this week that the bailed-out lender is considering buying back almost £2 billion of its own shares in 2019, doubling this year’s amount. The lender further made the headlines yesterday, unveiling that it had entered into a strategic wealth management partnership with Schroders (LON:SDR).
Analyst ratings update
UBS reaffirmed Lloyds as a ‘buy’ yesterday, valuing the shares at 80p. According to MarketBeat, the bailed-out lender’s consensus rating is a ‘buy,’ while the average price target currently stands at 76p.