Europe Earnings: Lloyds Banking, PostNL, Severn Trent, TUI Travel

Nigel Thomas
31 May, 2013
New York City

Lloyds Bank sold its U.S. mortgage portfolio to raised

[R]3:20 PM Frankfurt – Lloyds Bank sold its U.S. mortgage portfolio to raised £3.3 billion and also plans to sell its international private banking business in Miami to Banco Sabadell. Severn Trent profit for the year climbed 32% to £230.4 million. TUI Travel agreed to buy 60 Boeing 737 MAX airplanes.[/R]

In London trading, FTSE 100 index fell 0.8% or 55.33 to 6,602 and in Frankfurt the DAX index slid 0.5% or 37.49 to 8,363.

In Paris, CAC 40 index slipped 0.5% or 18.85 to 3,977.

Lloyds Banking Group Plc slid 0.2% to 61.69 pence after the UK based financial service provider agreed to sell a portfolio of U.S. residential mortgage securities business to a number of different institutions for a cash consideration of £3.3 billion.

In a separate note, Lloyds said the bank plan to sale of its International Private Banking business in Miami to Banco Sabadell, S.A. and to Union Bancaire Privée. The transaction is expected to transfer in the second half of this year and the remainder by the first quarter in 2014.

PostNL NV surged 7.3% to €2.11 after the Netherlands-based parcel delivery expects revenue from Mail in NL slid 1% to €2.27 billion and total revenue to flat at €4.33 billion from a year ago.

For the full year, the courier company lifted underlying cash operating income to between €50 million to €90 million from the earlier range of €20 million to €60 million.

Severn Trent Plc rose 0.6% to 2,060.75 pence after the UK based waste water treatment provider reported revenue in the year ending in March grew 3.4% £1.83 billion from £1.77 billion a year earlier.

Profit for the period climbed 32.1% to £230.4 million compared to £174.4 million and diluted earnings per share jumped 95.2 pence from 72.1 pence.

TUI Travel Plc fell 1% to 359.20 pence and the UK based leisure agreed to buy 60 of Boeing 737 MAX aircraft that are listed at a price of $6.09 billion or £4 billion. Most airlines win between 30% and 50% discount to the list price.

The delivery period for the 60 committed aircraft will start in January 2018 and run until March 2023.

TUI Travel has the option to acquire up to additional 90 Boeing 737 MAX aircraft on the same terms.