Major UK banks due to report

Posted on: 29 April 2014 by 50connect editorial

Banks cutting jobs in a push to widen the gap between lower costs and higher margins.

financial reports

Although the main equity focus right now is concentrating on figures coming out of the US, the start of May sees the major banks listed in the UK begin their 2014 Q1 earnings announcements.

Two weeks into the reporting season we have seen several of the main players in the US release their first quarter results. Citigroup (C), Wells Fargo (WFC), Bank of America (BAC), Morgan Stanley (MS) and Goldman Sachs (GS) have all beaten analysts’ estimates with unexpected increases in profits and revenues, while JP Morgan Chase (JPM) was the only bulge-bracket bank to fall short of expectations.

The UK banking sector has fallen -7% since the turn of the year because of the uncertainty in Ukraine and increased scrutiny from regulators. But it has been steadily rising over the past month, pushing its way through resistance levels as improvements have been seen in economic data such as non-farm payrolls and housing sales data.


IG’s banks sector is made up of the following constituents, with many of those listed reporting in May.



HBSC Holdings PLC


Lloyds Banking Group PLC


Barclays PLC


Standard Chartered PLC


Royal Bank of Scotland PLC


Bank of Georgia Holdings PLC



First up in London is Lloyds (LLOY) on May 1, which will have added attention as the government is expected to remarket the remaining 25% stake of the nationalised bank back to the public later in the month. The government will attempt to ‘get the best value for the taxpayer, maximising the support for the economy and restoring private ownership’ according to a statement.

Barclays PLC, who report on 6th, have this week announced plans to restructure the organisation by selling or exiting most of its commodities trading following increased regulatory pressure and declining volatility. Barclays is one of five banks currently under investigation by regulators in the daily gold fixing scandal on the suspicion of ‘collusion of price manipulation’.

This follows Deutsche Bank AG (reporting on April 29), who are also leaving the commodities trading business, and J.P. Morgan Chase, who recently sold its commodities investment arm, and Morgan Stanley –who plans to sell its physical-oil-trading business.

The general theme among banks this year seems to be jobs cutting in a push to widen the gap between lower costs and higher margins. Royal Bank of Scotland (RBS) on 2nd and HSBC (HSBA) on 7th complete the UK banks reporting in May and are expected to report better-than-expected results. It could certainty be a time when investors flock to the safe haven of a banking conglomerate to secure their investment. Or the bearish in the market may look to cut their positions as nerves build before earnings announcements.

By James Gee, Equity Trader at IG. Learn more about spread betting on the financial markets:

Spread bets and CFDs are leveraged products. Spread betting and CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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