Barclays to kick off key reporting season with UK banks under a cloud

The collapse of Silicon Valley Bank and the resulting fallout in the banking sector is not the best backdrop for the UK banks as they get set to report first quarter numbers.

Up first is Barclays (BARC) on 27 April. Its 2022 results published on 15 February were disappointing and prompted a big sell-off in the shares. The firm’s fourth quarter income of

£5.8 billion was below the consensus forecast of £6.1 billion due to a weaker-than-expected net interest margin in the retail bank and a lower-than-expected return from the investment bank.

The company also increased provisions for bad debts – likely to be an area of focus for investors when it provides its next update. [TS]

Hopes for a recovery in hygiene products at Reckitt

Consumer goods giant Reckitt Benckiser (RKT) is guiding for midsingle digit growth in like-for-like sales in 2023 and margins in line or slightly above 2022 levels with significant investment brand equity investment to support a strong innovation pipeline.

When the company provides a trading update later this month investors will be looking for evidence that cost inflation is abating and for continuing improvements in the hygiene division after Lysol struggled to generate growth against tough comparisons in 2022. [MG]