Deutsche Bank Transfers $6B in Error; Swedbank, Whitbread Profit Soar

Nigel Thomas
20 Oct, 2015
New York City

Deutsche Bank

[R]4:00 PM Frankfurt – Deutsche Bank’s foreign-exchange unit erroneously transferred $6 billion to a client. ASOS net edged up. Pentair net swung to profit and lowered fiscal outlook. Swedbank revenues and profit plunged. Whitbread sales and profit jumped.[/R]

In London trading, FTSE 100 index fell 7.20 to 6,345.13 and in Frankfurt the DAX index decreased 16.63 or 0.2% to 10,147.68.

In Paris, CAC 40 index slipped 30.26 or 0.6% to 4,673.81.

ASOS Plc surged 10.1% to 3,222.50 pence after the U.K.-based online fashion retailer said group revenues in the year ending in August jumped 18% from a year ago to £1.15 billion.

Net profit in the year edged up 0.8% from a year ago to £36.9 million compared to £36.6 million and diluted earnings per share slid to 44.4 pence from 44.5 pence.

Deutsche Bank AG dropped 1.2% to €26.59 after the Germany-based lender’s sales team of London-based foreign-exchange unit erroneously transferred $6 billion to a U.S. hedge fund client in June but recovered the entire money on the very next day.

However, the incident was reported to the U.S. Federal Reserve, the European Central Bank and the UK Financial Conduct Authority.

The bank said error occurred while trader processed a gross figure instead of a net value that resulted in “too many zeroes.”

Pentair Plc, the U.K.-based privately held industrial water and fluid handling application developer stated net sales in the third-quarter ending in September 26 slumped 11.9% from a year ago to $1.55 billion.

Net in the quarter swung to profit from a year ago to $115.2 million compared to a loss of $186 million and diluted earnings per share swung to 63 cents from diluted loss per share of 95 cents.

The company lowered earnings per share forecast for the year between $3.84 and $3.86 from the earlier estimated range of $3.80 to $3.90.

The company estimated sales for the year to decline 9% to $6.4 billion from a year ago period.

Swedbank AB slid 0.1% to 195.20 Swedish kronor after the Sweden-based bank reported total revenues in the third-quarter ending in September declined 9% from a year ago to 9.23 kronor.

Net profit in the quarter plunged 14% from a year ago to 3.93 billion kronor compared to 4.56 billion kronor and diluted earnings per share dropped to 3.52 kronor from 4.10 kronor.

Whitbread Plc jumped 2.3% to 4,835 pence after the U.K.-based hotel and catering group reported revenues in the first-half ending in September soared 11.3% from a year ago to £1.44 billion.

Net profit in the period jumped 4.1% from a year ago to £196.3 million compared to £188.6 million and diluted earnings per share increased to 107.98 pence from 104.39 pence.