day of reckoning tomorrow - gla

keep a special eye tomorrow on any impairments - acceptable is around 2.6B or less for the quarter - total income preferred not under 4.45B for the quarter - other major interests expected are how lloy will address current market conditions particulary delevaraging and issues of funding - a piece of cake :-)))))

Good or no good.

CEO concerns to overshadow Q3 results at LloydsReuters, Tuesday November 8 2011 By Sudip Kar-Gupta
LONDON, Nov 8 (Reuters) - The threat of a power vacuum at the top of Lloyds , whose chief executive is on sick leave, will overshadow the part state-owned British bank's third-quarter results on Tuesday.
Lloyds shocked investors last Wednesday with news Antonio Horta-Osorio, CEO since March, was ill with work-related fatigue and stress, adding the 47-year-old should return by the year-end.
With information scarce, there are worries Horta-Osorio may need longer to recover or may not return.
Finance director Tim Tookey, due to leave in February for another job, was appointed interim CEO, adding to worries that Horta-Osorio's executive upheaval since arriving has left Lloyds thin at the top, at a time when it faces several headwinds.
Exane BNP Paribas estimated Lloyds will make a third-quarter loss of 445 million pounds ($713 million) and Nomura predicts it will lose 513 million on the back of higher funding costs and losses on bad loans.
That would add to a first-half loss of 3.25 billion pounds, hit by compensation for customers mis-sold insurance products.
Lloyds has also been trying to sell 632 retail bank branches. New bank venture NBNK and Co-Op Financial Services have said they bid, although Lloyds has said it could spin-off the business if offers were too low.
Analysts have said there was no obvious replacement for Horta-Osorio. Standard Chartered finance director Richard Meddings, former JP Morgan banker Bill Winters and Lloyds non-executive director David Roberts have all been linked to the CEO post.
Lloyds shares fell 3.1 percent to 27.69 pence on Monday, less than half the 63.1 pence Britain paid for its 41 percent stake. ($1 = 0.624 pound) (Editing by Dan Lalor)

Interim Management Statement.


NINE MONTHS ENDED 30 SEPTEMBER 2011: KEY HIGHLIGHTS

'Although the UK economic environment has weakened in the third quarter, the flexibility in our strategic plan has allowed us to further improve our customer propositions, continue the reduction in our risk profile, strengthen our balance sheet and reduce costs. Over time,we believe our strategy will realise the full potential of our organisation for customers and shareholders.'
Tim Tookey
Interim Group Chief Executive and Group Finance Director

FURTHER PROGRESS IN REDUCING THE GROUP'S RISK

Non-core assets reduced to 151.4 billion, down 11.0 billion in the quarter, and 42.3 billion (22 per cent) year-to-date.

Customer relationship deposits (excluding repos) have increased 4 per cent since the end of 2010.

Improved loan to deposit ratio of 140 per cent (31 December 2010: 154 per cent).

Strong progress against term funding objectives with 30.6 billion of wholesale term issuance as at the end of September 2011, including 5.4 billion in Q3 despite challenging market conditions. In October an additional 3 billion of term funding was issued and as a result our 2011 term funding programme is now complete.

Total wholesale funding now 281.9 billion, down 5 per cent on 30 June 2011.

Maturity profile of wholesale funding maintained, with 50 per cent having a maturity date greater than one year.

Robust core tier 1 capital ratio of 10.3 per cent, slightly improved since 30 June 2011 and 31 December 2010.

RESILIENT UNDERLYING TRADING PERFORMANCE DESPITE CHALLENGING MARKET CONDITIONS

Overall, a resilient underlying trading performance although Group performance, particularly income, reflects the subdued UK economic environment, further risk and balance sheet reduction, and higher wholesale funding costs.

Combined businesses profit before tax of 1,748 million for the first nine months of the year. Before volatility effects and the impact of liability management exercises (together 188 million), profit before tax was down 6 per cent at 1,936 million. Core profit before tax was 4,375 million in the first nine months of the year.

Statutory loss before tax of 3,858 million (first nine months of 2010: profit of 1,967 million) after 3.2 billion PPI provision earlier this year.

Total income (before volatility effects, the impact of liability management exercises and net losses on asset sales) decreased by 9 per cent to 16,095 million, reflecting subdued lending demand, continued customer deleveraging and a lower banking net interest margin.

Banking net interest margin down slightly at 2.10 per cent year-to-date (first half of 2011: 2.12 per cent; first nine months of 2010: 2.20 per cent) with increased funding costs partially offset by the benefit of asset repricing and funding mix giving high confidence of achieving full year guidance.

Operating expenses down 3 per cent. Further gains from integration and lower operating lease depreciation were partly offset by increased employers' National Insurance contributions, inflation and other costs.

The integration programme is nearing completion and our focus is now on implementing the strategic review initiatives, including simplification.

Significant reduction in impairment charge to 7,378 million for the first nine months of 2011 (first nine months of 2010: 9,426 million) with improvements seen across all divisions, particularly Wholesale. The third quarter impairment charge of 1,956 million is better than expected, but full year guidance is unchanged.

FINANCIAL TARGETS MAINTAINED, THOUGH DELIVERY OF MEDIUM TERM TARGETS MAY BE DELAYED IF WEAK ECONOMIC CONDITIONS PERSIST

Expect to deliver on the financial performance targets incorporated within 2011 guidance but overall results continue to be impacted by accounting volatility effects and non-trading items.

As a result of the more challenging economic conditions that have arisen over the last few months we are reassessing our assumptions, principally around GDP growth and the timing of base rate increases. Although further opportunities for improving margins and profitability may partially mitigate these economic impacts if the current weaker economic conditions persist, the attainment of some of our medium-term financial targets, principally with regard to income related metrics, may be delayed to beyond 2014.

Income down 15% Gross profit down 30%

Question is, is all this within expectations?

And there in lies the rub!

I've put a cheeky buy order in - well one can but hope :-)

5% up would imply better than expected.

Its obviously a fickle up day - MKS profits slipped - they are up 4.5%.

Your bedside manner is a bit abrupt, skinny! Sometimes it's better to tell the patient what they want to hear rather than the truth!!! ;o)

Exactly skinny, sums up the market at mo, always wait till at least 0900 before making any trading decisions and even then it's a lottery till 1430 when our crazy cousins the yanks come on board :O)

panic over - roll on 30p

& yeeeeeeeeeeeeeeeeeeeeeehaaaaaaaaaaaaaaaaaaaaaaaaaaaa

lol onwards & upwards city happy!! read stats closely :-))))

Harry, Chris :-)

this is great as expected - fantastic volumes which will be sustained all day

Bring Back Tanker. He said he'd run Lloyds no bother :-).

30p soon

36p soon! ;o)