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Market Update

Barclays Net Tumbles on Africa Impairments, RBS Returns to Profit


Author: Sarla Buch
ticker.com
Last Update: 12:16 PM ET April 28 2017

4:00 PM Frankfurt Amundi reported strong net asset inflows primarily in treasury bonds products. Barclays profit tumbled 56% on goodwill impairment charges. Imerys announced strong quarterly results. Rexel said sales in the Europe and North America soared 12%. Royal Bank of Scotland net swung to profit for the first time since 2015.

In London trading, FTSE 100 index fell 16.93 or 0.2% to 7,220.73 and in Frankfurt the DAX index fell 12.05 to 12,460.44.

In Paris, CAC 40 index edged up 0.56 to 5,272.26.

For the week, FTSE 100 index advanced 1.5%, the DAX index jumped 3.2% and the CAC 40 index surged 4.2%.

For the month, FTSE 100 index declined 1.7%, the DAX index increased 2.3% and the CAC 40 index soared 4.5%.

Amundi SA rose 0.1% to 60.77 after France-based asset management services provider said net revenues in the first-quarter ending in March jumped 9.3% from a year ago to 432 million.

The largest asset manager in Europe said net profit in the quarter soared 13.2% from a year ago to 147 million from 130 million.

As of March 31, Amundi said asset under management advanced 4.2% to 1,128 billion and reported strong net inflows of about 32 billion from a year ago period.

Fund flows were strong across all asset classes. Asset flows were also strong with partners in Asia and also in France and Italy.

Barclays Plc declined 5.2% to 212.36 pence after the U.K.-based banking and financial services provider reported total revenues in the first-quarter ending in March surged 15% from a year ago to 5.3 billion.

Net income in the year tumbled 56% from a year ago to 190 million from 433 million and earnings per share dropped to 1.3 pence from 2.7 pence.

Barclays said pretax profit in the quarter more than doubled to 1.7 billion from 793 million a year ago and the profit increase was largely driven by the selling of its credit card portfolio in African unit.

The net income decline was affected by the one-time goodwill impairment charge of 884 million linked to Barclays Africa Group, which the parent company plans to sell before fiscal 2019.

However, the lender still faces series of political as well as regulatory obstacles and said ""certain legal proceedings and investigations relating to legacy issues"" were still outstanding.

""On Africa, we await approval for the separation arrangements already agreed with local management, following which we will be able to make further progress towards regulatory deconsolidation,"" said chief executive officer Jes Staley.

Imerys SA slipped 1.9% to 79.18 after France-based floor tiles and graphite powders provider reported revenues in the first-quarter ending in March soared 7.2% from a year ago to 1.1 billion.

Net profit in the quarter jumped 8.8% from a year ago to 78.8 million from 72.4 million and diluted earnings per share increased to 1.08 from 1.04.

The ceramic bodies for porcelain maker said operating profit in the quarter advanced 8.7% to 147 million from a year ago period.

Rexel SA slumped 1.9% to 16.61 after France-based electrical parts provider reported net revenues in the first-quarter ending in March jumped 5.1% from a year ago to 3.3 billion.

Net profit in the quarter surged 61.8% from a year ago to 62.8 million from 38.8 million and diluted earnings per share increased to 0.21 from 0.13.

Rexel said sales in the Europe and North America each soared 12% on favorable copper products prices while sales in the Asia-Pacific region dropped 4.8%.

Royal Bank of Scotland Group Plc advanced 4.6% to 265.10 pence after the U.K.-based banking and financial services provider reported total net interest income in the first-quarter ending in March increased 3.2% from a year ago to 2.2 billion.

Net in the year swung to profit from a year ago to 259 million from a loss of 968 million and diluted earnings per share swung to 2.2 pence from diluted loss per share of 8.3 pence.

The bank said operating profit in the quarter surged 1.3 billion from 440 million in a year ago period.

Yesterday, RBS said that it is closed to reaching a settlement related to a shareholder lawsuit linked to the activities in 2008.

Chancellor Philip Hammond admitted last week that the government is prepared to sell its stake in the bank at a loss. The government originally acquired the stake in the bank in 2008 for about 45 billion.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc