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Market Update

Santander Net Jumps, Novartis Plans $5 B Share Buy Back

Author: Sarla Buch
Last Update: 11:43 AM ET January 25 2017

4:00 PM Frankfurt – Banco Santander net jumped 4% after lower loan provisions and strong growth in fee income. Novartis profit plunged 11% and Swiss drug-maker plans tobuy back shares worth up to $5 billion in the next 12 months. Rio Tinto sells its Australia coal mine for $2.45 billion.

In London trading, FTSE 100 index increased 25.76 or 0.4% to 7,175.43 and in Frankfurt the DAX index advanced 204.71 or 1.8% to 11,799.05.

In Paris, CAC 40 index jumped 55.65 or 1.1% to 4,885.49.

Banco Santander, S.A advanced 3.5% to €5.35 after Spain-based retail and commercial bank said net interest income in the year ending in December dropped 3.4% from a year ago to €31.1 billion.

Net profit in the year jumped 4% from a year ago to €6.2 billion compared to the €5.9 billion and diluted earnings per share rose to €0.41 from €0.40.

The bank said growth in profit was mainly due to lower loan provisions and strong growth in fee income and improvements in credit quality and higher income from Brazil leads underlying profit before tax soared 12%.

“There is no question there will be an impact and that there already has been an impact on the peso in Mexico,” and “we continue to do well in Mexico despite the challenging environment,” executive chairman Ms Botνn said.

Busch SE, the Sweden-based privately held vacuum pumps, blowers maker plans to launch voluntary public tender offer for Pfeiffer Vacuum Technologies AG for €949 million through its wholly owned subsidiary and investment company Pangea GmbH.

EnQuest Plc slipped 2% to 48.75 pence after the U.K.-based oil and gas explorer agreed to acquire 25% stake in a mature North Sea oilfield from BP Plc for about £68.2 million or $85 million.

Novartis AG jumped 2.4% to €71.20 Swiss francs after Switzerland-based healthcare products maker reported revenues in the fourth-quarter ending in December slumped 2% from a year ago to $12.3 billion.

Net income in the quarter plunged 11% from a year ago to $936 million compared to the $1.05 billion and diluted earnings per share decreased 40 cents from 44 cents.

In 2016, the Novartis board of directors proposed dividend payment of 2.75 francs per share, increase of 2% from 2.70 francs per share in 2015.

Novartis forecast that net sales in fiscal 2017 may broadly in line with 2016 but core operating income likely to flat or decline at a low-single-digit

Separately, the Swiss drug-maker said it will buy back shares over the next 12 months up to $5 billion and may spin off the Alcon eye care business.

Rio Tinto Plc decreased 1.4% to 3,562.50 pence after the U.K.-based mining group agreed to sell its Australia-based subsidiary Coal & Allied Industries Ltd to China-focused domestic Yancoal Australia Limited for about $2.45 billion.

The transaction is expected to complete in the second-half of 2017.

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