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Market Update

Barclays Swings to Loss; Credit Suisse, Renault Net Jump


Author: Sarla Buch
ticker.com
Last Update: 12:59 PM ET July 28 2017

4:00 PM Frankfurt BT blamed profit decline in the first-half on accounting scandal in Italy. Barclays swung to net loss on charges related to Africa operations and rising claims linked to fraudulent insurance selling. Credit Suisse posted better-than-expected profit. Eni swung to profit. Renault lifted revenues forecast.

In London trading, FTSE 100 index slumped 39.98 or 0.5% to 7,403.05 and in Frankfurt the DAX index decreased 45.96 or 0.4% to 12,164.76.

In Paris, CAC 40 index declined 62.07 or 1.2% to 5,124.96.

For the week, FTSE 100 index slipped 0.7%, the DAX index dropped 0.6% and the CAC 40 index rose 0.1%.

BT Group Plc fell 1.9% to 310.05 pence after the U.K.-based communications services provider reported revenues in the first-quarter ending in June rose 1% from a year ago to 5.8 billion.

Net profit in the quarter tumbled 42% to 418 million from $717 million in a year ago quarter and diluted earnings per share declined to 2.9 pence from 5.9 pence.

BT said profit declined due to settlement of warranty claims with Deutsche Telekom and Orange and charges linked to accounting scandal of 225 million in Italy.

Barclays Plc dropped 1.6% to 205.70 pence after the U.K.-based investment banking and financial services provider said revenues in the first-half ending in June fell 0.9% from a year ago to 10.9 billion.

Net income in the period swung to a loss of 910 million from profit of $1.3 billion in a year ago six-month period and diluted loss per share swung to 6.5 pence from diluted earnings per share of 6.8 pence.

The bank said loss in the period was driven by Barclays Africa operations loss of 2.2 billion and additional 700 million, compensation claims linked to the fraudulent selling of payment protection insurance in the U.K.

Credit Suisse Group AG jumped 2.8% to 15.08 Swiss francs after Switzerland-based financial services provider said revenues in the first-half ending in June jumped 5% from a year ago to 11.2 billion francs.

Net income in the period swung to profit 899 million francs from a loss of 132 million francs in a year ago six-month period and diluted earnings per share swung to 0.39 francs from diluted loss per share of 0.06 francs.

The lender said net new assets in wealth management soared 12% to 22.8 billion francs, the strongest asset inflows in six years.

Assets under management soared to record high with a surge of 8% in the first-half to 716 billion francs.

Eni SpA edged up 0.3% to 13.27 after Italy-based petroleum products producer reported revenues in the first-half ending in June jumped 25.9% from a year ago to 33.7 billion.

Net in the period swung to profit 983 million from a loss of 1.2 billion in a year ago period and diluted earnings per share swung to 0.27 from diluted loss per share of 0.23.

The energy producer said as of June 30, net debt was about 15.5 billion and the total debt is expected to decrease following the sale of several assets and fields that are expected to complete soon.

International Consolidated Airlns Group SA fell 0.7% to 589.74 pence after the U.K.-based airline services provider stated revenues in the first-half ending in June increased 0.9% from a year ago to 10.9 billion.

Net income in the year rose 2.3% to 567 million from 554 million in a year ago period and diluted earnings per share edged up to 25.7 pence from 25.6 pence.

Renault SA plunged 5.8% to 76.33 after France-based auto maker said revenue in the first-half ending in June soared 17.3% from a year ago to 29.5 billion.

Net profit in the period surged 60% to 2.4 billion from 1.6 billion in a year ago six-month period and diluted earnings per share advanced to 8.70 from 5.47.

On July 17, Renault lifted sales estimate in Russia and Brazil and forecasted global passenger car market to expand 1.5% to 2.5% with an increase of 5% in China, 8% in India and 2% in Europe.

The auto maker forecast revenues in fiscal 2022 to soar 37% to 70 billion and operating margin of 7%.

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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