VW Net Surges on China and Porsche, Bond Trading Lifts Deutsche Net

Sarla Buch
27 Oct, 2016
New York City

Barclays profit tumbled 25% on 6% drop in revenues. Deutsche Bank net swung to profit with the help of improved bond trading. Volkswagen said profit surged on strong earnings from Skoda, Porsche units and in its China joint ventures.

[R]4:00 PM Frankfurt – Barclays profit tumbled 25% on 6% drop in revenues. Deutsche Bank net swung to profit with the help of improved bond trading. Volkswagen said profit surged on strong earnings from Skoda, Porsche units and in its China joint ventures.[/R]

In London trading, FTSE 100 index gained 28.48 or 0.4% to 6,986.57 and in Frankfurt the DAX index rose 7.40 to 10,717.08.

In Paris, CAC 40 index slipped 10.99 or 0.2% to 4,523.60.

AA Plc rose 0.1% to 252.60 pence after Guardian newspaper reported the U.K.-based roadside assistance service provider said passenger car insurance premiums are expected to increase on the continuing problems with whiplash claims.

“We are witnessing sustained price increases once again, which is bad news for drivers. I can’t see an immediate end to the current upward trend,” AA’s director of insurance Michael Lloyd said.

Barclays Plc jumped 4.8% to 190.50 pence after the U.K.-based financial services provider reported revenues in the nine-month period ending in September declined 6% from a year ago to £16.4 billion.

Net income in the period tumbled 25% from a year ago to £1.5 billion compared to £2 billion and diluted earnings per share slumped to 9.6 pence from 12.4 pence.

“The performance reported today represents a strong progress and we moved another stride closer to completing the restructuring of Barclays,"" chief executive officer Jes Staley said.

Deutsche Bank AG gained 0.6% to €13.38 after Germany-based investment bank said revenues in the third-quarter ending in September increased 2% from a year ago to €7.5 billion.

Net in the quarter swung to profit of €278 million compared to the loss of €6.02 billion in the quarter a year ago and diluted earnings per share swung to €0.18 from diluted loss per share of €4.35.

The embattled banking services provider said that it has turned around the business, after reporting €6 billion loss in the same period a year ago, with the help of improved bond trading in the quarter and raised legal provisions to €5.9 billion by the end of the quarter.

Chief executive officer John Cryan warned that the tough times may be ahead for the bank as it finalizes talks with the U.S. justice department and added ""will be difficult for a while"" as “the bank is working hard on resolution of this issue as soon as possible.”

Volkswagen AG fell 0.3% to €125.65 after Germany-based automobiles maker said revenues in the nine-month ending in September slid 0.2% from a year ago to €159.9 billion.

Net income in the quarter surged 49.9% from a year ago to €5.74 billion compared to the €3.83 billion and diluted earnings per share jumped to €11.42 from €7.61.

Volkswagen returns to profit on strong earnings in Skoda and Porsche business and from its China joint ventures even after $14.7 billion settlement of diesel emissions tests in the U.S.

Volkswagen lifted revenues forecast in the full-year and sales are likely to match €213.29 billion reported in the last year. The automaker had previously estimated revenue may fall as much as 5%.