Clydesdale Returns to Profitability, UK Lowers Lloyds Stake to 8%

Sarla Buch
22 Nov, 2016
New York City

Clydesdale Bank reported its first profit in five-years after separated from National Australia Bank. Entertainment One tumbled after net plunged 67% but revenues soared 19%. Lloyds Banking said government reduced its stake to 8%.

[R]3:00 PM Frankfurt – Clydesdale Bank reported its first profit in five-years after separated from National Australia Bank. Entertainment One tumbled after net plunged 67% but revenues soared 19%. Lloyds Banking said government reduced its stake to 8%.[/R]

In London trading, FTSE 100 index jumped 62.36 or 0.9% to 6,840.20 and in Frankfurt the DAX index increased 67.77 or 0.6% to 10,752.38.

In Paris, CAC 40 index advanced 41.75 or 0.9% to 4,571.48.

Clydesdale Bank Plc, the Scotland-based privately held banking and financial services provider reported net interest income in the year ending in September fell 0.9% from a year ago to £1.1 billion.

Net loss in the year narrowed from a year ago to £164 million compared to the £229 million and diluted loss per share dropped to 22.4 pence from 28.7 pence.

In February, the lender was spun off from National Australia Bank and reported pre-tax profits in the year to date £77 million compared to the pre-tax loss of £285 million.

The bank said operating profit in the year swung to £116 million from operating loss of £207 million and impairment losses on credit exposures declined 50% to £39 million in the same period a year ago.

Gross mortgage lending in the year jumped 6.3% to £21.84 billion and total customer loans advanced 4.5% to £30.15 billion from a year ago period and the bank plans to reduce underlying cost to below £630 million by the end of fiscal 2019.

Entertainment One Ltd tumbled 10.4% to 220.20 pence after the U.K.-based television, film and music content producer said revenues in the second-half ending in September soared 19% from a year ago to £401 million.

Net income in the period plunged 67% from a year ago to £5 million compared to the £15.1 million and diluted earnings per share slumped to 0.1 pence from 4 pence.

Essilor International SA plunged 6.5% to €95.20 after France-based ophthalmic optics products maker formed a new partnership by taking a 50% stake in a Hong Kong-based sunglasses and corrective lenses maker Photosynthesis Group.

Separately, Essilor has also agreed to purchase a 55% stake in China-based ophthalmic lens manufacturer and distributor Jiangsu Creasky Optical.

Essilor forecasted revenue growth now projected in the fiscal 2016 at about 3.5%.

Kingfisher Plc dropped 2.9% to 358.90 pence after the U.K.-based home improvement retailer reported revenues in the third-quarter ending in October surged 11.5% from a year ago to £2.96 billion.

Lloyds Banking Group Plc gained 0.9% to 59.65 pence after the U.K.-based financial services provider said the government had reduced to 7.99% stake following a share sale.

The Treasury said the share sales recovered more than £17 billion for 43% stake acquired for £20.3 billion as a part of the bailout package during the financial crisis of 2007-08

“Selling the shares in Lloyds Banking making sure that we get back all the cash taxpayers injected into it during the financial crisis is one of my top priorities as Chancellor,” Philip Hammond said.