SocGen Earnings Get Boost from Retail Banking, Total SA Beats Estimates

Sarla Buch
09 Feb, 2017
New York City

Eutelsat net fell 2%. Glaxo net swung to profit on new products sales. Henderson net plunged 32%. Societe Generale net tumbled 41% but profit in retail banking soared and the bank raises provision for litigation costs. Smith & Nephew net surged 91%. Total SA net swung to profit.

[R]4:00 PM Frankfurt – Eutelsat net fell 2%. Glaxo net swung to profit on new products sales. Henderson net plunged 32%. Societe Generale net tumbled 41% but profit in retail banking soared and the bank raises provision for litigation costs. Smith & Nephew net surged 91%. Total SA net swung to profit.[/R]

In London trading, FTSE 100 index rose 7.87 to 7,196.92 and in Frankfurt the DAX index increased 52.70 or 0.5% to 11,595.63.

In Paris, CAC 40 index gained 33.89 or 0.7% to 4,799.60.

Eutelsat Communications SA soared 6.8% to €17.52 after France-based satellite services said revenues in the second-half ending in December advanced 2.5% from a year ago to €774.4 million.

Net profit in the period dropped 2.2% from a year ago to €188 million compared to the €192.2 million and diluted earnings per share increased to €0.828 from €0.826.

GlaxoSmithKline Plc ((GSK)), the U.K.-based healthcare and consumer products maker reported revenues in the fourth-quarter ending in December jumped 20.6% from a year ago to £7.6 billion.

Net in the quarter swung to profit from a year ago to £257 million compared to the loss of £354 million and diluted earnings per share swung to 5.2 pence from diluted loss per share of 7.3 pence.

New product sales in the year more than doubled to £4.5 billion driven by HIV, respiratory and meningitis vaccines.

GSK said net cash flow from operations in 2016 jumped to £6.5 billion from £2.6 billion in a year ago, reflecting improved operating performance and the net benefit of exchange rate.

Henderson Group Plc dropped 2.8% to 210.80 pence after the U.K.-based investment manager said revenues in the year ending in December dropped 4% from a year ago to £594.7 million.

Net profit in the year plunged 32% from a year ago to £109.6 million compared to the £161.2 million and diluted earnings per share decreased to 15.2 pence from 17.2 pence.

Pretax operating profit in the year slipped 3.3% to £212.7 million and as of December 31, assets under management soared 10% to £101 billion from the same period a year ago.

Societe Generale SA jumped 3.2% to €44.10 after France-based financial services provider reported revenues in the fourth-quarter ending in December fell 1% from a year ago to €6.13 billion.

Net profit in the quarter tumbled 41% from a year ago to €390 million compared to the €656 million.

Despite lower interest rates in France, net profit in its retail bank soared 25% to €402 million and net profit in international retail banking and financial business jumped 50% to €438 million.

In the quarter, the bank raised total provision for litigation by €150 million to €2 billion as the bank is under an investigation by the U.S. authorities for alleged sanction breaches.

However, the lender had booked a loss of €235 million on the sale of its fully-owned subsidiary OTP Bank in Croatia to Splitska Banka.

Smith & Nephew Plc slumped 2.4% to 1,172 pence after the U.K.-based medical surgical devices maker reported revenues in the year ending in December rose 1% from a year ago to $4.7 billion.

Net profit in the year surged 91.2% from a year ago to $784 million compared to the $410 million and diluted earnings per share nearly doubled to 87.8 pence from 45.6 pence.

The medical devices maker said pretax profit in the year jumped to $1.06 billion from $559 million in a year ago period.

The group estimated higher revenue growth between 1.2% and 2.2% and an improved trading profit margin in fiscal 2017.

Thomas Cook Group Plc plunged 8.2% to 84.50 pence after the U.K.-based leisure travel group stated revenues in the first-quarter ending in December increased 1% from a year ago to £1.6 billion.

Net pretax loss in the year widened from a year ago to £135 million compared to £116 million.

The leisure tour company warned that political uncertainty and terror threat may affect the business in rest of the year, chief executive officer Peter Fankhauser said.

Total SA slipped 0.8% to €47.22 after the France-based oil and gas producer reported sales in the fourth-quarter ending in December jumped 12% from a year ago to $42.3 billion.

Net in the quarter swung to profit from a year ago to $548 million compared to the loss of $1.6 billion and diluted earnings per share swung to 96 cents from 88 cents.

Total said profit was helped by reduction in costs, higher oil output and recovery in the crude oil prices.