Banking in the spotlight as Brexit remains hot topic

Barclays facing change
Barclays facing change

Banking giants will dominate the reporting this week, with the City looking out for any Brexit concerns when Barclays and Lloyds deliver their half-year results.

Barclays posts its half-year figures on Friday after a better-than-expected results season from its US counterparts, but Brexit will remain in focus.

The group will likely have to make big changes to adapt post Brexit, having sold off most of its European operations since the financial crisis.

Boss Jes Staley will be looked to for further details on its plans following the vote when he unveils interim results.

The figures come after deal-making and trading revenues have come under pressure in recent months, although US investment banks have put in a robust performance thanks to a second quarter bounce back.

Half-year results showed revenues from trading fixed income, commodities and currencies rose 20% to $1.93bn (£1.5bn) in the second quarter.

Barclays saw profits tumble by a quarter in the first three months of the year as it was hit by tough trading in its investment banking arm.

Lloyds Banking Group is expected to bolster profits when it updates the market with its half-year results on Thursday.

The state-backed bank looks set to boost statutory pre-tax profits to £2.35bn for the first half of the year, up from £1.19bn over the period in 2015, according to consensus figures.

It comes after the lender saw its profits take a hit in the period last year when it added £1.4bn to its bill for compensating customers mis-sold payment protection insurance (PPI).

The consensus figures, which were compiled before the Brexit vote and based on the views of 15 analysts, have pencilled in the bank’s net interest income to edge up to £5.81bn over the period, compared to £5.71 bn the year before.