BUSINESS LIVE: Lloyds profits jump; Santander earnings soar; Reckitt sales slip

Published on: October 25, 2023

LIVE

By Live Commentary

Updated: 07:58 BST, 25 October 2023

The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are Lloyds Banking Group, Reckitt Benckiser, Banco Santander, Halma and Franchise Brands. Read the Wednesday 25 October Business Live blog below.

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Santander earnings soar

Santander’s third quarter profits rose 20 per cent from the same quarter in 2022 thanks to higher lending income in Europe, which offset a weaker performance in the US.

The euro zone’s second-biggest lender in terms of market value booked a net profit of $3billion, beating the $2.9billion expected by analysts.

Santander has relied on Latin America in the past to cope with tough conditions in Europe, though it now benefits, like its European rivals, from higher interest rates.

‘While the external environment is increasingly uncertain … I am confident that we will achieve our 2023 targets given the positive momentum which we also expect to carry into 2024,’ the bank’s chair Ana Botin said in a statement.

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Lloyds profits jump on interest rate hikes

Lloyds Banking Group profits came in at £1.9billion for the third quarter, slightly above expectations after the revenue boost from higher interest rates offset competitive pressure on margins and flagging lending demand.

The profit is up from £576million at the same time last year and above market forecasts of $1.8billion.

Most British banks have reported a run of strong profits as higher rates have lifted lending revenue. But investor concerns about tougher competition for savers’ cash and potential loan defaults in a cost of living crisis have weighed on the sector.

Barclays shares closed down 7 per cent on Tuesday after it downgraded its margin forecast for the year and hinted at big cost-cutting plans to come.

Charlie Nunn, group chief executive, said: ‘Guided by our purpose, we remain focused on supporting our customers and helping them navigate the uncertain economic environment.

‘The Group continues to perform well. Robust financial performance and strong capital generation in the first nine months of the year was driven by net income growth, cost discipline and resilient asset quality. This performance allows us to reaffirm our 2023 guidance.

‘As we set out in the first of our four strategic seminars1 earlier this month, we are successfully executing against our strategic priorities. This supports progress towards our ambition to enable higher, more sustainable returns. Together, it will better position us to deliver for all of our stakeholders as we continue to help Britain prosper.’