Among those currently scheduled to release results next week:
19-Feb | |
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Full Year Results |
20-Feb | |
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Full Year Results | |
Barclays * | Full Year Results |
Full Year Results | |
Full Year Results |
22-Feb | |
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Full Year Results | |
Half Year Results | |
Hargreaves Lansdown | Half Year Results |
Half Year Results | |
Full Year Results | |
Full Year Results | |
Lloyds * | Full Year Results |
Full Year Results | |
Full Year Results | |
Full Year Results | |
Nestle * | Full Year Results |
Half Year Results | |
Full Year Results | |
Q1 Trading Statement | |
WPP * | Preliminary Full Year Results |
23-Feb | |
|---|---|
Full Year Results | |
Full Year Results | |
Full Year Results |
The outlook for 2024 is in focus for several UK Banks
Several of the biggest UK banks report fourth-quarter results next week and there are a few main themes running across the sector. Loan default levels and impairment charges will be key for investors. Until now, consumers and corporations have remained relatively resilient to broader economic pressures. The levels of defaults on loans have been staying in line with pre-pandemic levels.
Net interest margin trends and the outlook for 2024 will be important to watch. We’re hoping to see a slowdown in customers shifting to higher rate and longer-term savings accounts, which would be welcome news for the banks. There could also be some positive news on mortgage lending, where we expect conditions to improve over the year.
Demand for BAE Systems' products is likely to remain robust
BAE Systems occupies a key space in the defence market. Given the elevated threat environment, we’re expecting to hear that demand for BAE’s products and services has remained strong when the group announces full-year results next week. Markets are expecting full-year revenue to grow 6% to £24.6bn, in line with the group’s prior 5-7% guidance.
We’ll also be hoping to hear how the group’s $5.55bn acquisition of Ball Aerospace is progressing. The deal should be settled in the first half of the year, and we’re cautiously optimistic that the combination of expertise and technology will be a good fit, although nothing is guaranteed. Despite taking on new debt to fund the acquisition, the balance sheet’s likely to remain in good health. However, we’ll be keeping an eye out for any updates to the group’s shareholder return plans, with the Ball Aerospace deal likely to put some pressure on cash resources in the near to medium term.
The author holds shares in BAE Systems.
AI investment will be in the spotlight at WPP
Media and advertising giant WPP expects to post full year net-revenue growth of 0.9%, with operating margins in the region of 15%. That’s at the top end of guidance, and given how recently the update landed, we’re optimistic the group will come good on these plans.
Market moves are more likely to be governed by WPP’s commentary on AI. The rapid changes in technology present huge opportunity, but also risk to the group. There are plans to invest £250mn a year in data and technology, and we suspect the market would like a bit more detail on exactly how that will be spent.
More broadly, the group's being stung by lower spending in tech and creaking economic activity in China which affects how much is being spent on marketing, and therefore the amount hitting WPP’s bank account. We’d like some further steer on how the global advertising landscape is shaping up for 2024.
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