29th Oct 2026 07:51
(Alliance News) - Lloyds Banking Group reports a sharp rise in third-quarter profit, while Shell more than doubles its earnings and announces a USD5 billion share buyback. Premier Inn owner Whitbread expects to benefit from UK budget measures limiting business rates increases for hospitality businesses.
Here is what you need to know before the London market open:
----------
MARKETS
----------
FTSE 100: called up 0.3% at 10,725.80
GBP: higher at USD1.3319 (USD1.3310 at previous London equities close)
----------
BROKER RATINGS
----------
Morgan Stanley raises Aviva to 'overweight' - price target 820 pence
----------
Jefferies cuts GSK to 'hold' (buy) - price target 2,100 (2,500) pence
----------
COMPANIES - FTSE 100
----------
Lloyds Banking Group reports third-quarter pretax profit of GBP2.33 billion, nearly doubling from GBP1.17 billion a year earlier, supported by higher income and lower remediation charges. Underlying net interest income rises 10% to GBP3.81 billion from GBP3.45 billion, while its banking net interest margin improves to 3.25% from 3.06%. For the first nine months of 2026, pretax profit climbs 42% to GBP6.63 billion from GBP4.68 billion, while underlying net interest income increases 10% to GBP11.08 billion from GBP10.11 billion. The nine-month banking net interest margin rises to 3.21% from 3.04%. Lloyds maintains its full-year guidance, expecting underlying net interest income of more than GBP14.9 billion, a cost-to-income ratio below 50%, return on tangible equity above 16% and capital generation exceeding 200 basis points. The bank also plans to reduce its common equity tier one capital ratio to around 13.0% by year-end from 13.3% at September 30.
----------
Shell reports third-quarter net profit more than doubling to USD12.15 billion from USD5.42 billion a year earlier, as revenue rises 36% to USD92.85 billion from USD68.15 billion, although it falls from USD94.66 billion in the second quarter. Basic earnings per share more than double to USD2.15 from USD0.91 a year earlier. Adjusted earnings rise to USD10.81 billion from USD9.84 billion in the previous quarter, supported by strong operational performance, elevated commodity prices and record refining margins. Adjusted Ebitda increases to USD22.74 billion from USD20.71 billion quarter-on-quarter, while cash flow from operations stands at USD21.04 billion despite Middle East disruptions. The oil major announces a further USD5 billion share buyback programme over the next three months and expects full-year cash capital expenditure of USD23 billion to USD25 billion, including its acquisition of ARC Resources. Shell also highlights its final investment decision on LNG Canada phase 2 and reports gearing of 16.6% following the ARC acquisition.
----------
WPP reports third-quarter revenue rising 0.5% to GBP3.27 billion, while revenue less pass-through costs falls 2.0% to GBP2.41 billion, a 2.1% decline on a like-for-like basis. For the first nine months, revenue falls 2.8% to GBP9.65 billion, with revenue less pass-through costs down 4.4% to GBP7.16 billion. The advertising group maintains its full-year guidance for a headline operating margin of 12% to 13% and expects like-for-like revenue less pass-through costs to decline by a low to mid-single-digit percentage in the second half, with fourth-quarter performance towards the better end of that range. WPP also reiterates its forecast for adjusted operating cash flow before working capital of GBP800 million to GBP900 million.
----------
Whitbread expects a significant improvement in its financial performance following measures announced in the UK Budget to limit business rates increases for hospitality businesses in England. The Premier Inn owner estimates its business rates payments will rise by between GBP7.5 million and GBP12.5 million in financial 2028, compared with a previously expected increase of around GBP35 million, with a similar benefit anticipated in financial 2029. By financial 2029, Whitbread expects its business rates payments to be between GBP45 million and GBP60 million lower than previously forecast. The government plans to freeze business rates for two years, preventing above-inflation increases for hospitality properties. Chief Executive Dominic Paul welcomes the measures, alongside more moderate increases in the national living wage and minimum wage. Whitbread will provide updated UK cost inflation guidance in January 2027.
----------
Bunzl acquires UK-based Wessex Cleaning Equipment and Janitorial Supplies, a distributor of cleaning and hygiene products, janitorial supplies and cleaning equipment. The specialist international distribution group says the acquisition will strengthen its position in the UK cleaning and hygiene market, expand its geographical coverage and enhance its offering in equipment sales and hire. Wessex generated revenue of GBP11 million in the financial year ended March 31, 2026. Bunzl acquires 100% of the business, although financial terms of the transaction are not disclosed.
----------
COMPANIES - FTSE 250
----------
Rank Group expects an additional annual cost of around GBP9 million following the UK government's decision to increase Machine Games Duty to 25% from 20%, effective April 1, 2027. The casino and bingo operator estimates the change will increase duty costs by approximately GBP2 million in its financial year ending June 30, 2027, before any mitigating measures. Despite the increase, Rank remains confident of delivering like-for-like operating profit in line with expectations for the current financial year. The group plans to provide further details on the Budget's impact and potential mitigating actions alongside its interim results on January 28, 2027.
----------
PPHE Hotel Group reports third-quarter revenue rising 5.8% to GBP164.9 million from GBP155.9 million a year earlier, driven by strong trading in London and Croatia. Like-for-like revenue increases 6.3%, while revenue per available room rises 6.6% to GBP149.5 from GBP140.3, supported by higher occupancy of 83.4% from 80.2%. Average room rates increase 2.6% to GBP179.4. For the first nine months, revenue grows 5.2% to GBP374.2 million from GBP355.8 million. The hotel operator maintains its full-year outlook in line with market expectations, with company-compiled analyst forecasts indicating revenue of GBP474.6 million to GBP479.8 million and Ebitda of GBP140.0 million to GBP143.4 million. PPHE also completes the USD33.5 million sale of its New York development site.
----------
OTHER COMPANIES
----------
Hutchmed China says the US Food & Drug Administration has granted orphan drug designation to its investigational treatment sovleplenib for primary immune thrombocytopenia, a rare autoimmune disorder that increases the risk of excessive bleeding. The designation makes the oral drug eligible for development incentives, including tax credits, regulatory support and seven years of US market exclusivity if approved. Sovleplenib, a selective spleen tyrosine kinase inhibitor, is also under regulatory review in China for primary immune thrombocytopenia and warm antibody autoimmune haemolytic anaemia, following positive results from its pivotal Eslim-01 and Eslim-02 clinical trials. Hutchmed retains worldwide rights to the treatment.
----------
By Eva Castanedo, Alliance News senior economics reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
AvivaGlaxosmithklineLloydsShellWPPWhitbreadBunzlRank Group PlcHutchmed