It will be a bumper time for corporate earnings in the coming week, with over 15% of the FTSE 100 reporting results, though the main focus will be squarely on the banking sector.
HSBC PLC (LON:HSBA), Barclays PLC (LON:BARC), Lloyds Banking Group PLC (LON:LLOY), and Royal Bank of Scotland PLC (LON:RBS) will also report numbers, with Laith Khalaf, senior analyst at Hargreaves Lansdown expecting a mixed bag.
After a decade of making losses, RBS is teetering on the brink of being back in the black, having posted profits of ?1.3bn for the first nine months of 2017.
However, analysts full-year estimates are pencilling in ?2.2bn of conduct charges in the fourth quarter, which is expected to push the state-owned lender into a loss of ?592mln, its tenth consecutive year in the red.
Across the whole year, conduct charges are expected to total ?2.7bn, stemming mainly from an impending fine from the US Department of Justice, while an increase in PPI compensation costs has also tilted the scales.
RBS has been guiding towards profitability in 2018, which suggests it is looking to book the lion's share of the fine in 2017, however, with the timing and size of the US DoJ fine still to be announced, RBS could actually break its duck and return to profit in 2017, with that fine pushed into the current year.
Analysts are not expecting any fireworks from the full-year numbers from Lloyds Bank - which finally returned to full public ownership last year - with underlying income growth likely be steady rather than spectacular, and loans to customers broadly flat for the year.
However, cost savings and an improved net interest margin should mean profit growth is a little more impressive, although further charges for payment protection insurance (PPI) mis-selling are also likely.
But the real focus for investors is the strategy review accompanying results, with cost savings likely to remain a key focus, as will efforts to move more services online and increasingly offer a digital banking service.
Big charges also to drag down Barclays profits
Barclays is also facing some large exceptional items which are going to drag down its reported profits., one of which is a ?1bn charge to profits thanks to President Trump's US tax reforms.
However, that charge does mean in the meantime Barclays will need to write down an estimated ?1bn of its US deferred tax assets, a bit of accounting jiggery pokery which will reduce reported profits but doesn't really tell us anything about Barclays in the real world.
Like Lloyds, Barclays may also face further PPI charges, with PPI costs for 2017 to come to at least ?700mln, taking Barclays' total PPI bill to ?9.1bn.
The bank's dealings with Qatar holdings in 2008 are being investigated by no less than the SFO (Serious Fraud Office), the FCA (Financial Conduct Authority), the DOJ (US Department of Justice) and the SEC (US Securities and Exchange Commission).
Former CEO John Varley is also being prosecuted by the SFO and may ironically end up being the only UK banking boss brought to book for the financial crisis, despite avoiding a taxpayer bailout.
Change of guard at HSBC
Tuesday's full-year results will be Stuart Gulliver's last day in the office as CEO of HSBC, before John Flint takes over - since January 2011 when Gulliver took charge, HSBC's share price has risen by 16% although it's not all been plain sailing.
While it may be listed in the UK, HSBC is far from a UK operation, with 70% of its profits coming from Asia.
Like Barclays, HSBC's reported 2017 profits are going to be very muddy because of one-off accounting factors like a write-down of its US deferred tax assets, while comparison with the prior year is also going be flattered by a write-down on the sale of HSBC's Brazilian business in 2016.
The dividend is looking safer than it did, though it's not expected to rise significantly for the foreseeable future, however HSBC is instead choosing to return cash to investors through share buybacks, to which end a fresh US$2bn scheme was announced last summer.
Strong fourth-quarter needed from Reckitt Beckiser
Away from the bank's, Monday sees Anglo-Dutch fast-moving consumer goods giant Reckitt Benckiser Group PLC (LON:RB.) try to emerge from the shadow of successive sales warnings.
The group was hit hard by the impact of the so-called 'Petya' ransomware attack that blocked access to computers and demanded US$300 in bitcoin to release them; that prompted a warning on sales in July, which was followed by another warning in October after a rough third-quarter in which disruptions caused by the cyber-attack were still being felt.
"Underlying sales and profit forecasts have tailed off to such an extent that Reckitt needs a strong fourth quarter to hit even its revised target of a flat like-for-likes," suggested Nicholas Hyett, an equity analyst at Hargreaves Lansdown.
"One division which will attract attention is infant nutrition brand Mead Johnson, which was acquired in a $17.9bn deal last summer. With little product or geographic cross-over, it's perhaps not a natural fit," Hyett added.
US tax changes the focus for BAT after expansion
British American Tobacco plc's (LSE:BATS) quarterly results on Thursday should also reveal more details on how the recent tax changes in the US are likely to affect the company and comments on the steady increase in regulation of tobacco products will also be interesting.
In December, the cigarette manufacturer said it was performing well with trading in line with the cigarette maker's expectations and its markets in Canada, Germany, Romania, Bangladesh and Ukraine were performing well, but condition in Russia, the Gulf states, Brazil, South Africa and Malaysia remained challenging.
In January the FTSE-100 listed firm said that the announced tax changes will have no impact on its underlying effective tax rate, saying it anticipates that the changes will result in a non-cash exceptional tax credit as a result of the revaluation of deferred tax balances arising from the acquisition of Reynolds American Inc.
Investors to check-out InterContinental Hotels
Full-year results from InterContinental Hotels Group (LON:IHG) on Tuesday, are expected to show revenue rising by 5.6% to US$1,811mln, driven primarily by net system size expansion and growth in revenue per available room.
A 7% increase in the FTSE 100 listed firm's EBIT to US$757mln is also expected, in addition to an 18% increase in EPS to US$2.37 as a result of solid operating profit growth and lower shares outstanding following consolidation.
The main point of interest for the update will be the performance of US operations and whether there are signs of improvement, particularly following lower than expected performance in the Middle-East and US regions in interim results.
The effects of US tax reforms will also be considered, as IHG has said it expects the latest tax bill to "result in a significant, exceptional tax credit in the financial year the bill is signed into law, which would be realised in cash terms over a long period from 2018,"
No dire straits for Barratt Developments
To misquote Dire Straits, it has been a case of "money for nothing, and your bricks for free" for house-builders since the government's "Help to Buy" initiative was introduced.
As such, half-year results from Barratt Developments PLC (LON:BDEV) should be an upbeat affair, though much of the good news was released in the trading update on January 11.
The focus will, therefore, be on current trading.
"Given good demand and our healthy forward order book we continue to expect to deliver modest growth in wholly owned completions in FY18," the company said in January.
Total forward sales, including joint ventures, as at the end of 2017 were up 2.0% year-on-year, equating to 10,921 plots (2016: 10,520 plots).
"Barratt is our least preferred house-builder as its lower margins make it more exposed to downside risk, and we do not see much scope to improve margins," said Liberum in a note released after the January trading statement.
"Its relatively short land bank and high land creditors mean it has less potential to cut cash outflows in support of the dividend than the other returners. As we set out in a recent sector review, we expect continued resilience for the market for new houses, and we do not see clear or present dangers for the cycle; however, we believe that margin progress will become tougher in a slower market," Liberum said.
Investors betting on growth at William Hill
William Hill plc (LON:WMH), the self-styled "home of betting", has already tipped off the market that trading in 2017 was ahead of expectations.
Full-year adjusted profit is expected to be around ?290mln, up 11% or so on 2016.
In common with other bookies, William Hill has now enjoyed four successive months in which sporting results favoured the bookmaker more than the punter.
According to the Barclays' Oddschecker study of gross win margins (GWMs), January GWMs were once again friendly to the bookie, at +8%, versus +4.8% in December.
Oddly enough, this may not be what the bookmakers want, and might result in the odds for the upcoming Cheltenham festival in March being more generous than usual.
In its January trading update, William Hill said it was conducting a strategic review of its business in Australia in view of the credit betting ban down under and the likely introduction of a point of consumption tax in a number of states.
Analysts will be keen to hear of any progress on this, though they may have to wait for the analysts' presentation for clues on which way management will jump.
'Headwinds' for BAE Systems PLCs (LON:BA.) fighter jet related business is expected, by Morgan Stanley, to offset positive momentum seen in the defence and engineering group's American operations.
Morgan Stanley analyst Andrew Humphrey said he expects to see a "temporary pause" for BAE in 2018.
Nonetheless, Humphrey highlighted that BAE's valuation is "inexpensive" and that there are better US budget trends and cash flow will provide support to the share.
Morgan Stanley rates BAE as 'equal weight' and it has a price target of 550p, compared to a market price of 588p.
Elsewhere, online equity dealer The Share Centre sees BAE as a 'buy' and, in its own preview, highlighted the "very good" recent news flow from contract wins that are due to factor into 2018 results.
"Indeed, there are positive expectations for the 2017 numbers where the market believes revenues grew to ?19.6bn, up by roughly 10% while reported profits are expected to breach ?1bn for the first time since 2012 after a difficult numbers of years following government budget deficits.
"Trading from the US and Middle East are expected to have been good and management should reaffirm these views for 2018."
Previewing Thursday's 2017 results Deutsche Bank repeated a 'sell' recommendation for Centrica Plc (LON:CNA) with a 125p price target linked to the British Gas owner's November profit warning.
With the recent warning priming investors for bad news, analyst Martin Brough reckons the market will be looking closely at the future outlook - and his expectations are not positive.
"A key focus may be the outlook for the DPS beyond 2017," the analyst said in a note.
"Centrica has said the FY dividend is underpinned by cash ??,ows and earnings and that it is willing to live with low dividend cover for a period.
"The outlook for group earnings may be heavily dependent on the level chosen by regulator Ofgem for the full standard variable tari??EUR cap, due to be implemented later this year once legislation is in place."
UBS analyst Colm Kelly highlighted there was "limited signs of stabilisation" in the fund management business ahead of Standard Life Aberdeen Plc's (LON:SLA) full year results on Friday.
Kelly noted the "continued deterioration" of in flows in the fourth quarter coinciding with sustained outflows for emerging markets and Asia-Pacific equities.
"Fund performance has picked up YTD but remains challenged across core funds (lower percentiles vs benchmarks), providing limited confidence this could trigger a turnaround," the analyst said in a note.
"We expect more detail on the merger integration progress and an update on the retention or withdrawal of Lloyds insurance assets, which could occur in February 2018. We see an acceleration of reinvestment to reposition SLA's fund offering for longer-term growth as a key risk to merger synergy benefits at this point."
Amidst the corporate news deluge, some important economic news will also be released in the coming week, including the latest UK unemployment and average earnings numbers, plus minutes from the latest US Federal Reserve FOMC policy meeting, all due on Wednesday.
Given the market's current obsession with inflation and interest rates, in a preview economists at RBC Capital think the odds that the FOMC minutes are interpreted as reinforcing this narrative of a firming inflationary backdrop are high.
They said the tweaks to the Fed's press statement were significant enough that the minutes are likely to read hawkish overall, having finally acknowledged that inflation will "move up" this year.
The economists said this admission by the Fed is yet another step away from what has been an underlying dovish thread within the committee.
With a possible further Bank of England rate hike now seen as likely in May, December UK average earnings numbers are likely to be left somewhat in the shadow of confirmation from the BoE regional agents' survey on pay, showing settlements averaging an increased 3.1% rate for 2018.
Economists at RBC Capital expect the growth rate of UK average earnings, excluding bonuses, to hold at 2.4%.
The next few months of actual outturns will be crucial therefore, to see if this survey evidence actually materialises, which could be enough to bring the more dovish members of the MPC into line to supporting further gradual increases in interest rates by the BoE.
Another solid gain in the level of UK employment also looks likely after last month's surprise 106,000 increase. Although the unemployment rate is expected to hold at 4.3%, according to the economists at RBC Capital.
Meanwhile, ahead of next month's UK Budget on March 13, the latest public finances data, also due on Wednesday, is forecast to show a surplus of around ?7bn in January, according to RBC, with the fiscal year-to-date borrowing standing at ?50bn, in line with the full year target.
US markets closed for President's Day holiday
Finals: Reckitt Benckiser PLC (LON:RB.), Spectris plc (LON:SXS), McColl's Retail Group PLC (LON:MCLS), Fidessa Group PLC (LON:FDSA)
Interims: MJ Gleeson PLC (LON:GLE), Petra Diamonds Limited (LON:PDL)
Economic data: Rightmove UK house prices
Finals: HSBC Holdings PLC (LON:HSBA), InterContinental Hotels Group PLC (LON:IHG), Lighthouse Group PLC (LON:LGT), Synectics PLC (LON:SNX)
Interims: BHP Billiton plc (LON:BLT), Dunelm PLC (LON:DNLM); Green REIT PLC (LON:GRN), Springfield Properties PLC (LON:SPR), Tristel Plc (LON:TRTL)
Economic data: CBI UK industrial trends survey
Finals: Lloyds Banking Group PLC (LON:LLOY), Glencore PLC (LON:GLEN), Capital & Counties PLC (LON:CAPCC)
Interims: Barratt Developments PLC, Hotel Chocolat Group PLC (LON:HOTC), SkinBioTherapeutics PLC (LON:SBTX)
Trading update: FirstGroup PLC (LON:FGP)
Economic data: UK unemployment, average earnings; UK public sector finances; US existing home sales; US FOMC meeting minutes
Finals: Anglo American PLC (LON:AAL), BAE Systems PLC (LON:BA.), Barclays PLC (LON:BARC), British American Tobacco PLC (LON:BATS), Centrica PLC (LON:CAN), RSA Insurance PLC (LOON:RSA), Intu Properties PLC (LON:INTU), KAZ Minerals PLC (LON:KAZ), Macfarlane Group PLC (LON:MACF), Morgan Sindall Group PLC (LON:MGNS), Playtech PLC (LON:PTEC), Rathbone Brothers PLC (LON:RAT), Vitec Group PLC (LON:VTC)
Interims: Go-Ahead Group PLC (LON:HOG), Hays plc (LON:HAS), Wilmington PLC (LON:WIL)
Trading update: Hansard Global PLC (LON:HSD), Safestore Holdings PLC (Q1) (LON:SAFE)
FTSE 100 ex-dividends: Carnival PLC (LON:CCL), Diageo plc (LON:DGE), GlaxoSmithKline plc (LON:GSK), Imperial Brands PLC (LON:IMB)
Economic data: UK second reading Q4 GDP; US weekly jobless claims
Finals: Royal Bank of Scotland Group PLC (LON:RBS), International Consolidated Airlines Group PLC (LON:IAG), Standard Life Aberdeen PLC (LON:SLA), Pearson plc (LON:PSON), William Hill PLC (LON:WMH), Rightmove PLC (LON:RMV), Afarak Group PLC (LON:AFRK)