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Market Update

Europe Movers: HSBC Profit Drops 15%, Prudential Net Jumps 55%


Author: Nigel Thomas
ticker.com
Last Update: 10:13 AM ET March 13 2013

2:00 PM Frankfurt HSBC said 2012 net profit dropped 15% to $15.33 billion. Prudential net jumped 55% to 2.20 billion. Thomas Cook steps up restructuring programs to save 50 million. Tesco agreed to buy restaurant chain Giraffe for 48.6 million.

In London trading, FTSE 100 index gained 0.9% or 57.5 to 6,453 and in Frankfurt, the DAX index inched up to 0.1 to 7,966. In Paris, CAC 40 index slid 0.1% or 5.7 to 3,834.

HSBC Holdings plc fell 1.3% to 719.99 pence after the UK based financial services provider reported net interest income for the year ending December dropped 7.4% to $37.67 billion from a year ago. Profit for the year declined 14.5% to $15.33 billion and diluted earnings per share slipped to 74 cents from a year ago.

The bank said profit before tax dropped 6% to $20.6 billion and underlying profit before tax surged 18% to $16.4 billion. Return on equity dropped 8.4% compared to 10.9% from last year.

Prudential plc climbed 4.8% to 1,078.10 after the UK based insurance company said total revenue for the year ending December surged 7.4% to 55.48 billion from a year ago. Profit for the year jumped 54.9% to 2.20 billion compared to last year. Diluted earnings per share slipped to 86.4 pence from a year ago.

Thomas Cook Group plc surged 15% to 100.06 pence after the UK based tour operator stepped up restructuring programs and identified additional cost savings of 50 million bringing improvement actions for total profit of 350 million.

The restructuring program of the tour operator targets to deliver operating margin above 5% by the end of 2015 and gross earnings in the non-core program between 100 million and 150 million.

Tesco Plc, slipped 1.2% to 376.15 after the UK based grocery retailer agreed to buy restaurant chain Giraffe for 48.6 million.

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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