23rd Oct 2025 07:57
(Alliance News) - Lloyds Banking Group reports a 36% fall in quarterly pretax profit after taking an GBP800 million charge for motor finance commission issues, while London Stock Exchange Group raises its margin guidance following strong third-quarter growth and a new post-trade partnership with major global banks.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called higher 0.2% at 9,515.00
GBP: lower at USD1.3348 (USD1.3366 at previous London equities close)
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BROKER RATINGS
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Barclays raises Reckitt price target to 6,300 (5,600) pence - 'equal weight'
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Barclays cuts WH Smith to 'equal weight' (overweight) - price target 675 (1310) pence
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COMPANIES - FTSE 100
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Lloyds Banking reports a 36% drop in pretax profit for the three months to September 30 to GBP1.17 billion from GBP1.82 billion a year earlier, after booking an GBP800 million charge related to motor finance commission arrangements, taking its total provision to GBP1.95 billion. Net income rises 7% to GBP4.64 billion from GBP4.35 billion, with underlying net interest income up 7% to GBP3.45 billion and the banking net interest margin improving to 3.06% from 2.95%. Operating costs edge up to GBP2.30 billion from GBP2.29 billion, while remediation costs surge to GBP875 million from GBP29 million due to the motor finance issue. The return on tangible equity falls to 7.5% from around 15%, but excluding the motor finance charge, Lloyds estimates it would be around 14%. The lender revises its 2025 guidance, now expecting underlying net interest income of about GBP13.6 billion and a return on tangible equity of 12% (or 14% excluding the charge). Chief Executive Charlie Nunn says performance remains "robust" and highlights the recent acquisition of Schroders Personal Wealth, which adds around GBP17 billion in assets under administration and strengthens Lloyds' wealth management strategy.
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London Stock Exchange Group signs a deal with 11 global banks - Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC, JP Morgan, Morgan Stanley, Nomura, Societe Generale, and UBS - for them to acquire a 20% stake in its Post Trade Solutions division for GBP170 million, valuing the business at GBP850 million. The agreement will also amend the SwapClear revenue share terms, cutting the banks' portion from 30% to 15% in 2025 and to 10% from 2026, with the arrangement extended to 2045. LSEG says the changes will lift its share of the revenue surplus and are expected to be 2% to 3% accretive to adjusted earnings per share in 2025. Separately on a trading update, LSEG reports total income excluding recoveries up 6.4% in the third quarter, led by Risk Intelligence up 14% and FTSE Russell up 9.3%, with Data & Analytics up 4.9% and Markets up 6.3%. The company raises its 2025 Ebitda margin guidance to the top of its range, expecting a 100 basis point improvement, excluding a further 100 basis point benefit from the new SwapClear arrangements. LSEG also announces an additional GBP1 billion share buyback to be completed by February 2026, bringing total repurchases over the 12-month period to GBP2.5 billion.
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Unilever reports third-quarter underlying sales growth of 3.9%, driven by 1.5% volume growth and 2.4% price growth. Turnover falls 3.5% year-on-year to EUR14.7 billion, reflecting currency headwinds and disposals. The consumer goods group says growth was broad-based across all five business units, led by Beauty & Wellbeing up 5.1%, Personal Care up 4.1%, and Foods up 3.4%. Developed markets grow 3.7%, while emerging markets rise 4.1% as performance in Indonesia and China improves. Unilever reiterates its full-year outlook, expecting underlying sales growth within its 3% to 5% range and an improvement in second-half operating margins to at least 19%, or 20% excluding Ice Cream. Chief Executive Officer Fernando Fernandez says that Unilever continued "to outperform in developed markets" in the third quarter. "Our performance excluding Ice Cream showed good sequential improvement, with a step up in volume growth. We expect to complete the Demerger of the Ice Cream business by the end of the year. This will create a simpler Unilever, with a sharper focus and structurally higher margin profile," he adds. The company declares a quarterly dividend of 45.28 euro cents, up 3.0% from a year earlier.
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COMPANIES - FTSE 250
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AJ Bell reports record platform assets under administration of GBP103.3 billion at September 30, up 19% year-on-year, as total customers rise 19% to 644,000. Advised customers increase 6% to 182,000, while direct-to-consumer customers jump 25% to 462,000. Platform underlying net inflows total GBP7.1 billion for the year, up 16% from GBP6.1 billion, with gross inflows rising 21% to GBP15.8 billion from GBP13.3 billion a year prior. AJ Bell Investments assets under management grow 31% to GBP8.9 billion from GBP6.8 billion, with net inflows of GBP1.3 billion, down from GBP1.5 billion. Chief Executive Officer Michael Summersgill says the group surpasses GBP100 billion in assets for the first time. "The benefits of our investments are evidenced by record levels of platform customer growth and net inflows. Our D2C platform maintained its strong momentum to report its best year to date, and our Advised platform delivered robust growth," he says.
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Wickes reports group revenue of GBP420.1 million, up 6.9% year-on-year and 5.9% on a like-for-like basis, supported by continued volume-led growth across both Retail and Design & Installation. Retail revenue rises 6.7% to GBP312.5 million, or 5.6% like-for-like, driven by strong demand from DIY and TradePro customers, with Click & Collect sales up 18% and active TradePro members increasing to 632,000. Design & Installation revenue grows 7.8% to GBP107.6 million, or 7.0% like-for-like, marking a second consecutive quarter of positive delivered sales growth. Total year-to-date revenue stands at GBP1.27 billion, up 6.0% or 5.0% like-for-like. Chief Executive Officer David Wood says: ""This has been another strong period for Wickes, with sales driven by an increase in volumes...Looking ahead, we remain well-placed for the full year as we continue to support our customers across all their home improvement projects."
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OTHER COMPANIES
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Kerry Group reports year-to-date volume growth of 3%, well ahead of end markets, with strong margin expansion and maintained full-year guidance. Pricing is up 0.2%, while the Ebitda margin expands by 90 basis points, driven by cost efficiencies, operating leverage and product mix. Growth is led by the Americas, where volumes rise 3.6%, supported by demand in Snacks, Dairy & Bakery, while Europe and APMEA [Asia Pacific, Middle East & Africa] deliver sequential improvements in the third quarter, with APMEA volumes up 4.1%. Chief Executive Officer Edmond Scanlon says the group achieves "good growth in the Americas" and continues to invest in bio-fermentation, taste technology and regional capacity expansion. Kerry maintains its full-year constant currency adjusted earnings per share guidance of 7% to 11% growth, noting that it remains well positioned for further volume growth despite ongoing market uncertainty.
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By Eva Castanedo, Alliance News reporter
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Related Shares:
LloydsLondon Stock ExchangeBarclaysHSBC HoldingsWickes Group P.AJ BellUnileverReckittWh Smith