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Barratt Developments points to signs of recovery in UK housing market
Barratt Developments today said sales have picked up and it will meet City profit expectations, with the UK’s largest housebuilder adding to signs of a recovery in the residential market.
Like rivals, the FTSE 100 company saw trading impacted after the aftermath of September’s mini Budget sent mortgage bills jumping, and on top of that a cost of living crisis has hit demand.
In February Barratt reported early signs of recovery in reservation rates, and chief executive David Thomas has now said: “Whilst the economic backdrop remains difficult, we are pleased that more positive sales rates have been maintained through this period and we are now fully forward sold for FY23.”
Read more HERE.
US bank shares hit by more turbulence
The KBW Nasdaq Bank index fell 4.5% yesterday and is now below where it was at the time of turmoil involving Silicon Valley Bank and Credit Suisse at the end of March. The industry benchmark has lost about a quarter of its value in the year to date.
With the crisis far from over after the weekend collapse of First Republic and the subsequent purchase of its assets by JP Morgan Chase, shares in US regional banks dropped sharply yesterday before steadying later in the session.
PacWest Bancorp still ended the day 28% lower and Metropolitan Bank down by more than 20%, while heavyweight stocks also came under pressure as Citigroup and Bank of America both lost around 3% of their value.
Concerns over the US debt ceiling have added to the jitters after Treasury Secretary Janet Yellen said the government could run out of money within a month unless Congress agrees to lift the statutory borrowing limit.
Aston Martin sales accelerate but net debt goes up a gear too
Aston Martin Lagonda posted a 27% jump in sales to just under £300 million for the first quarter of 2023 but saw its net debt increase by more than £100 million on the previous quarter to £868 million.
The supercar maker said its DBS 770 Ultimate, the most powerful production Aston Martin ever, was unveiled in January 2023, with all 499 examples having already sold out.
Canadian billionaire Lawrence Stroll, boss of Aston Martin, said: “Since the start of the year, we have continued to see strong demand across our product range, with our current range of sports cars essentially sold out for the year.
“The DBX707, the first car developed under my leadership, continues to receive broad media acclaim and, with a growing number incredibly satisfied customers, is strengthening the DBX orderbook in our all major markets, as well as our overall financial performance.”
(PA)
/ PA ArchiveMetro Bank reports first unadjusted profit
In a quarter marked by banking turmoil, Metro Bank reported an unadjusted profit for the first time.
The high street bank founded in 2010 reported an underlying profit in the final quarter of last year, but achieved profit on a statutory basis for the first time in Q1 as new current account openings rose by 18%.
“Metro Bank has delivered a second consecutive quarter of underlying profitability and March has been our strongest month of performance since the turnaround commenced,” Boss Daniel Frumkin said. “We continued to attract more personal and business accounts, demonstrating the strong appeal of our service-led, community-based model.
“Whilst we remain watchful of macroeconomic headwinds, we continue to optimise the business for improved risk-adjusted returns and are confident in our plan to become a sustainably profitable growth engine.”
Lloyds profit hits £2.3 billion in the first quarter beating City forecasts
Lloyds Banking Group has reported profit before tax of £2.3 billon for the first quarter, up from £15 billion in the same period a year ago.
That was higher than the £1.95 billion forecast by City experts.
Loans and advances to customers dropped by £2.6 billion to £452.3 billion. Customers pulled £2.2 billion out of accounts in the period, taking them to £473.1 billion. Retail current account balances dropped by £3.5 billion, partly due to “seasonal outflows” including tax bills due in January. Commercial banking deposits rose £2.7 billion, offsetting the decline in retail accounts.
Its forecast-beating profits, from a period where the global banking sector was hit by crisis, were another sign that the turbulence from the collapse of Credit Suisse and Silicon Valley Bank in the US left the UK sector untouched.
Charlie Nunn, Lloyds chief executive, called the performance “solid”, but added: “The macroeconomic outlook remains uncertain. We know that this is challenging for many people. Our purpose driven strategy, alongside our financial strength, means we can continue to support our customers across the country.”
The update from the high street lender brings the curtain down on reporting season for banks.
US shares under pressure, FTSE 100 steadies
US stock markets were sharply lower last night amid ongoing concerns over the health of the country’s regional banking sector.
The prospect of tonight’s Federal Reserve interest rates decision and press conference also kept investors on the sidelines as the S&P 500 index fell 1.2%.
The selling hit almost all sectors, with financial stocks among the worst affected after the collapse of First Republic and subsequent takeover by JP Morgan Chase.
The impact of rising interest rates on financial stability will remain in focus today as US policymakers are widely expected to announce another quarter point hike in borrowing costs.
However, traders will also be looking for any indication from Fed chairman Jerome Powell that a funds range of 5%-5.25% represents the peak of the cycle.
The US jitters impacted trading in London yesterday, leaving the FTSE 100 index down by more than 1%. CMC Markets expects a calmer session this morning and is forecasting a rise of 25 points to 7798 at the opening bell.
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