Mixed fortunes in the pipeline as oil giants and banks reveal all

Barclays is expected to unveil adjusted pre-tax profits for the three months to September 30 of £1.7bn, up 27 per cent on the same quarter in the previous year. But this will not include an additional £700m hit for covering the cost of mis-sold payment protection insurance (PPI) claims nor a £1.1bn own credit charge.

Lloyds Banking Group is facing an additional charge for mis-sold PPI claims of up to £1.5bn in its third-quarter update on Thursday, brokers Credit Suisse have warned.

The forecast was made in light of the extra £700m set aside by Barclays and takes into account the size of Lloyds’s loan book.

Stripping out one-off items including PPI charges, Credit Suisse has forecast pre-tax profits at Lloyds of £578m for the third quarter, compared with a loss of £727m in the previous three months.

BP will face questions tomorrow over the impact of its recent £16.7bn deal with Russia’s Rosneft when it unveils its third-quarter results. Rosneft agreed to buy BP’s 50 per cent stake in its troubled TNK-BP joint venture for £10.7bn in cash and £6bn worth of Rosneft shares. The deal will see BP grab a 19.75 per cent stake in Rosneft.

BP is expected to report underlying replacement cost profit of £2.5bn in the three months to the end of September, a 25 per cent drop on the same quarter last year.

Elsewhere, rival Royal Dutch Shell will give its third-quarter update on Thursday and is expected to reveal a rise in profits quarter-on-quarter as it benefits from higher oil prices.

Shell is forecast to report third- quarter profits of £3.9bn, up 10 per cent on the previous quarter but down 10 per cent on the same quarter last year.