Lloyds Banking Group 'set to report annual profit'

1 November 2010

Lloyds Banking Group is widely expected to reveal its first full-year profit since 2007 when it issues a trading update this week.

Analysts are set to look for signs that the bank is making progress in its efforts to secure new funding and end its reliance on state support when the figures emerge on Tuesday (November 2nd), the Daily Telegraph reports.

Lloyds will be the first of the UK's large banks to publish its third-quarter figures, with Royal Bank of Scotland and HSBC set to release their own updates on Friday.

With Barclays also due to report next Tuesday, each of the banks is likely to face questions about their exposure to compensation claims for the mis-selling of payment protection insurance (PPI).

Research published by Morgan Stanley last week indicated that British institutions could face a collective £5.1 billion bill for PPI over the next five years.

The investment bank claimed Lloyds faces the greatest exposure to PPI claims, estimating its potential liabilities at £1.5 billion.

By Asim Shah

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