Banks will be the centre of attraction next week as trading updates and annual meetings of major banks are in the pipeline for first quarter results.
The reporting season for banks is here and most of the big names will be announcing their pofits/losses in the coming weeks.
The Lloyds event in Edinburgh recently announced the news that they had already returned to profitability in the first quarter of the year, Cheerful news for its stake holders. Though they did not make huge profits but it was a great relief after the £6.3 billion loss it made in 2009 after the HBOS takeover and credit crunch. All this left Lloyds with £24 billion bad debts. The news of profits would work well in favor of the Lloyds group.
However Pirc, a research and advisory consultancy that provides services to institutional investors has warned the combined level of performance-related pay during 2009 was excessive and is recommending disagreement against the Lloyds remuneration report at the meeting.
Even Royal Bank of Scotland has come under the scanner for over pay and performance targets. It would review its share prices in its AGM.
HSBC also reported improvements in its bad debt charges. It reported a 56% rise in underlying 2009 profits to $13.3 billion. Analysts say there will be further improvements in profits in the first quarter.
Insurance company Prudential also posted its figures recently and there is constant speculation of shareholders against its bid for AIG’s Asian arm.
Amidst so many speculations and profits figures shareholders will keep a close watch on the moves of major financial institutions.
