Lloyds Banking's Investor Returns to Face Full-Year Spotlight

Lloyds Banking's Investor Returns to Face Full-Year Spotlight

1503 GMT - Lloyds Banking Group's shareholder returns are likely to be one of the areas of focus for investors in the bank's full-year results on Wednesday. Analysts are looking for a total dividend for the year of 2.4 pence a share against 2 pence in 2021, which would be worth some GBP1.6 billion, AJ Bell says. "In addition, Lloyds ran GBP2 billion in share buybacks in 2022 and is expected to do the same again in 2023," Bell's investment director Russ Mould writes. ([e-mail])

Companies News: 

HSBC Posts Higher Profit After Rise in Global Interest Rates -- WSJ

Global banking giant HSBC Holdings PLC reported a sharp rise in fourth-quarter profit, driven by higher interest rates.

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Intermediate Capital COO, CFO Vijay Bharadia to Step Down

Intermediate Capital Group PLC said Tuesday that Chief Financial and Operating Officer Vijay Bharadia has decided to step down following the company's annual general meeting in July.

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Antofagasta 2022 Pretax Profit Fell on Lower Copper Prices

Antofagasta PLC said Tuesday that pretax profit for 2022 fell due to lower copper prices, and reduced its dividend payout.

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InterContinental Hotels Launches $750 Mln Buyback Program; 2022 Pretax Profit Rose, Missed Consensus

InterContinental Hotels Group PLC said Tuesday that it was launching a $750 million share buyback program for 2023 as it reported a rise in 2022 pretax profit driven by strong demand but missed consensus.

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Finsbury Food 1H Pretax Profit Rose on Price Recovery

Finsbury Food Group PLC said Tuesday that pretax profit for the first half of fiscal 2023 rose, driven by price recovery initiatives, and that it remains on track to meet full-year market expectations.

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Smith & Nephew Posts 2022 Pretax Profit Drop, Updates Midterm Targets

Smith & Nephew PLC on Tuesday reported a drop in pretax profit for 2022 due an associate's loss as it outlined guidance for 2023 and updated its midterm targets.

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Safestore Holdings Had Solid 1Q; Expects to Meet FY 2023 Consensus

Safestore Holdings PLC said Tuesday that it had a solid first quarter with revenue growth of 9.4% and it expects to meet consensus adjusted earnings per share for the year.

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Carr's Group Names Peter Page CEO; 2022 Pretax Profit, Revenue Rose

Carr's Group PLC on Tuesday said executive chairman Peter Page is relinquishing the role as he becomes chief executive officer and named David White as chief financial officer, both with immediate effect, and reported a rise in pretax profit for fiscal 2022.

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Petra Diamonds Swung to Pretax Loss on Higher Costs, Lower Sales

Petra Diamonds Ltd. reported a swing to pretax loss in the first half of fiscal 2023, in line with expectations, dragged by higher costs and lower diamond sales.

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GB Group 2023 Revenue to Rise on Year But Miss Forecasts

GB Group PLC said Tuesday that it expects fiscal 2023 revenue to rise, despite challenging conditions for cryptocurrency and macroeconomic uncertainty in its key North America market.

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Blancco Technology 1H Revenue, Profit Rose Amid Broad Growth

Blancco Technology Group PLC said Tuesday that revenue and profit rose for the first half of fiscal 2023 as it booked double-digit constant currency growth in each of its three geographies.

 
Market Talk: 

InterContinental Hotels CEO Sees China Reopening Stoking Travel Demand

1004 ET - InterContinental Hotels CEO Keith Barr says early trends from the reopening of China have proven encouraging and that travelers from the country will be a major contributor to 2023 summer travel. During Chinese New Year, domestic travel demand in China reached 90% of 2019 levels, Barr tells WSJ. InterContinental has about 650 operating hotels in China. "Everybody was traveling," Barr says. He adds that an executive from a big Chinese travel group told him that cross-border travel is still being hampered by low airline capacity into and out of China, but that once Chinese travelers get out of China, they are staying abroad for longer. He says that could be an early sign of what's to come this summer as flying capacity ramps up. ([e-mail]; @WillFOIA)

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InterContinental Hotels CEO Sees No Sign Of Slowdown

0958 ET - InterContinental Hotels CEO Keith Barr says he has yet to see any signs of a slowdown in spending on travel, despite continued headlines about inflation and job cuts. "I just can't see anything other than growth right now," he tells WSJ. "I was in New York in December, and I was like 'where is this recession?' We've never seen demand at that level." He adds that pricing is "through the roof" and the company hasn't seen any meaningful price sensitivity. "It does feel like the consumer is healthy. The economy is healthy." He notes that recent consumer surveys have shown that travel is the last discretionary category that consumers want to cut. ([e-mail]; @WillFOIA)

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Rio Tinto Investors Poised to Eye Earnings, Outlook

1523 GMT - Rio Tinto's earnings and economic outlook are likely to face the spotlight in the miner's full-year results Wednesday. In 2021, Rio racked up $37.7 billion in underlying Ebitda, but analysts expect this to have dropped to $26.5 billion in 2022, with a further drop to $24.6 billion forecast for 2023, AJ Bell says. "The drop in 2022 is seen as the result of lower metals prices for much of the year, as fears of a global slowdown and a recession in the West grew," AJ Bell analysts write. Rio Tinto's shares are slightly higher than 12 months ago thanks to factors such as higher Chinese raw-material demand and bumper shareholder returns, AJ Bell says. "However, a recession could yet change perception," the analysts say. ([e-mail])

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Wizz Air Likely to Benefit From the End of War in Ukraine

1453 GMT - Wizz Air is expected to recover to moderate profitability in FY 2024 after FY 2023's significant losses, Barclays analysts say in a note. The budget airline's confidence that it can regain its prepandemic profit margins as a significantly larger group isn't shared by analysts, who say its expansion into Western Europe is seen as that of a late comer into a hotly-contested market. Still if the war in Ukraine ends in a peace settlement securing an independent Ukraine its share price is expected to rally strongly, analysts say. "All airlines would benefit from a peace settlement that would likely bring lower fuel prices and greater consumer and investor confidence, yet the impact would be greatest for Wizz," analysts say. ([e-mail])

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InterContinental Hotels CEO Says Group Travel Surging

0950 ET - InterContinental Hotels CEO Keith Barr says demand from groups, meetings and events is rapidly rebounding, and some of that is likely being driven by hybrid work. "People are not coming into the office and they're working remotely. I've got to get them together now every now and then," Barr tells WSJ. Meeting and convention space is in high demand, he says. Additionally, demand from weddings, Bar and Bat Mitzvahs and other family gatherings is surging because they were delayed during the pandemic. Demand in some markets is outpacing supply of space, he says. "It's sort of like a snake trying to swallow an elephant in some markets."([e-mail]; @WillFOIA)

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HSBC Shareholder Returns Were Highlight of FY Numbers

1359 GMT - HSBC's shareholder returns stood out in the bank's annual results, AJ Bell says. The numbers mirrored those of rivals Barclays, Standard Chartered and NatWest in terms of higher interest margins, loan losses and dividends, Bell says. Still, HSBC's planned cash returns were the highlight, Bell says. The proposed full-year dividend of $0.32 was higher than expected and the bank is already targeting a $0.21 special dividend and maybe additional share buybacks for 2023, when analysts also expect the regular distribution to rise to $0.53, Bell says. "That $0.53-per-share forecast translates into an annual payment worth GBP8.7bn, the biggest single company figure for the year from any FTSE 100 firm, according to analysts' consensus estimates," Bell's Russ Mould writes. ([e-mail])

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Sterling Rises as UK PMI Data Boosts Rate Rise Bets

1255 GMT - The latest U.K. purchasing managers' index survey prompted markets to raise their interest-rate expectations, boosting sterling, Monex Europe says. The signs of inflationary pressures highlighted by Tuesday's PMI data will be a concern for the Bank of England, Monex analyst Nick Rees says in a note. "This release does not change the likelihood of a 25 basis points rate rise in March, but if confirmed in subsequent data, could suggest that further additional hikes will follow," he says. "This has been reflected in markets today with the expected terminal [peak] rate ticking back up above 4.5%." GBP/USD rises 0.5% to 1.2101 and EUR/GBP falls 0.8% to 0.8807 after hitting a three-week low of 0.8793 earlier, according to FactSet. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

02-21-23 1044ET