Europe Earnings: Barclays, Debenhams, Investec, IG Group, Lloyds, Schaeffler

Nigel Thomas
17 Sep, 2013
New York City

Barclays fined

[R]4:00 PM Frankfurt – Barclays fined £50 million for fund raising practices linked to 2008 Qatar offering. Debenhams said online sales surged 46%. Investec dropped after first-half update. IG Group said revenue in the first quarter climbed 15%. HM Treasury sold its 6% stake in Lloyds to raise £3.2 billion.[/R]

In London trading, FTSE 100 index fell 0.5% or 32.27 to 6,591 and in Frankfurt the DAX index slid 0.2% or 15.39 to 8,598.

In Paris, CAC 40 index decreased 0.2% or 8.33 to 4,144.

Barclays Plc slumped 2.9% to 296.55 pence after the Financial Conduct Authority fine £50 million to the bank to fail to disclose details of 2008 widespread fundraising scam in Qatar.

Debenhams Plc rose 0.3% to 103.50 pence after the UK based retailer said online sales in the year ending in August surged 46.2% and group comparable sales increased 2%. Gross margin for the year is expected to be flat.

Investec Plc dropped 3.3% to 427.20 pence after the UK based diversified investment services provider expects revenue in the first-half ending in September in-line with the last year. Customer account deposit declined 5% to £23.4 billion and loan and advances dropped 6% to £17.4 billion.

The company added total income impairment charge expected to nearly 25%, lower than the prior year. Since March, assets under management slipped 5% to £66.4 billion.

IG Group Holdings plc gained 1.1% to 601 pence after the UK based brokerage company said revenue in the first quarter climbed 15% to £93.6 million from £81.5 million a year ago period.

Lloyds Banking Group Plc declined 3.4% to 74.71 pence after the UK Financial Investments Ltd. Controlled by HM Treasury sold its stake of 6% at a price of at least 75 pence per share to raise £3.2 billion.

Schaeffler Technologies GmbH & Co. KG, the Germany-based auto-parts maker raised €950 million by selling 3.9% of Continental AG shares to lower its debt at holding company.

Schaeffler sold 7.8 million shares in Continental AG at a price of €122.50 a share and reduced its gross debt of €10.3 billion to €9 billion and Schaeffler AG reduced its gross debt from €6.7 billion to €5.8 billion.