Updates from the financial sector will be interesting following the market carnage resulting from the government’s mini-Budget and the Bank of England rate hike.
Stepping up on Tuesday will be Close Brothers Group PLC (LSE:CBG), the FTSE 250-listed merchant bank and owner of market maker Winterfloods, where people may perhaps be hastily rewriting commentary about current and expected conditions.
“The key focus within the results, we think, will be the outlook for credit quality in the bank’s diverse range of asset-backed interest margin segments,” said UBS in a preview.
“The outlook for revenues will also be important, driven by higher rates (stable asset yields, rising deposit costs, uncertain outlook for loan growth), lower asset markets (within Close Brothers Asset Management) and equity market volatility (for Winterflood).”
The City analyst consensus is for £352mln underlying profit and £253mln operating profits on almost £949mln of income.
UBS said it also expects attention to be paid to the outlook for expense growth moving into 2023 "given the high inflation and the cost momentum which ongoing investment in the business implies".