Europe Earnings: BNP, Credit Suisse, The Co-op, Standard Life, Tesco

Nigel Thomas
24 Mar, 2014
New York City

BNP Paribas lifted its fiscal outlook for years to 2016. Credit Suisse agreed to pay $885 million to settle a U.S. regulator lawsuit linked to faulty mortgages. The Co-op plans to raise additional

[R]4:00 PM Frankfurt – BNP Paribas lifted its fiscal outlook for years to 2016. Credit Suisse agreed to pay $885 million to settle a U.S. regulator lawsuit linked to faulty mortgages. The Co-op plans to raise additional £400 million. Standard Life plans to buy Ignis Asset worth £400 million.[/R]

In London trading, FTSE 100 index slid 0.1% or 8.22 to 6,548.95 and in Frankfurt the DAX index dropped 0.5% or 44.64 to 9,298.30.

In Paris, CAC 40 index fell 0.5% or 19.40 to 4,315.88.

BNP Paribas SA slipped 1.1% to €56.36 after the France-based bank forecasted double digit annual earnings growth over the next three years driven mostly from the U.S. and Asian businesses and revenues are expected to grow at least 10% between 2013 and 2016.

The bank expected return on equity of 10% or more by 2016 from the current return of 7.7% in 2013.

Credit Suisse Group AG dropped 1.3% to 27.20 francs after the Switzerland-based investment bank agreed to pay $885 million to settle lawsuits brought by Federal Housing Finance Agency over mortgages sold to Fannie Mae and Freddie Mac.

The Co-operative Group, the U.K.-based financial services provider said it plans to raise additional £400 million from issuing of new shares after finding the additional costs related to past misconduct and poor documentation.

The lender estimate losses for 2013 of approx £1.3 billion and said charges linked to legal costs linked to legacy PPI business and technical breaches of the consumer credit act dragged results.

Dixons Retail Plc fell 0.7% to 49.56 pence after the U.K.-based retailer and Carphone Warehouse Group were given more time by a U.K. regulator to discuss a potential £4 billion merger plan.

Standard Life Plc rose 0.4% to 367.60 pence after the U.K.-based investment company confirmed that it is in talks to buy Ignis Asset Management, a fund manager worth £400 million.

Tesco Plc jumped 1.1% to 294.15 after the U.K.-based retailer signed an agreement to form a equal ownership joint-venture in India-based Trent Hypermarket that operates Star Bazar.