RAMSEY CROOKALL & CO

5th May 2011 Evening Report

The top share index gave up its bright start to resume the slide suffered yesterday, with banks leading the fall. The mining sector, which also started brightly, also closed lower. First quarter profits fell sharply at part-nationalised lender Lloyds Banking, as the bank took an impairment charge that was half a billion pounds larger than it was expecting, largely to reflect declining Irish property prices. The group saw profit before tax fall to £284m in the first quarter on a combined businesses basis from £1,104m the year before. Underlying income fell to £5.20bn from £5.97bn a year earlier and £5.75bn in the preceding quarter. Lloyds closed down 4p at 53p.

Medical devices firm Smith & Nephew said first quarter revenue was boosted by progress at its US knee franchise while net profit fell. During the first quarter ended 2 April 2011 revenue rose to $1.055bn from $995m the year before. Trading profit fell to $241m from $250m after it incurred higher administrative expenses. Finally, paper and packaging firm Mondi said price increases have been pushed through across all of its major product lines, contributing to the group's best quarterly performance for some time. Underlying profit in the first quarter of 2011 of €187m was well ahead of the figure for the corresponding period of 2010.

THE FTSE 100 closed         Down 64 @ 5919

THE DOW JONES at 4:45 Down 69 @    12654

THE NASDAQ COMP at 4:45 Down 2 @     2825

Exchange Rates

GBP – USD           1.6425 GBP - EURO          1.1244