British Air Patent Launches Buyback, RBS Loss Widens

Sarla Buch
24 Feb, 2017
New York City

British Air parent launched a share buyback program. Pearson reported largest loss on impairment charge. RBS reported wider-than-expected loss on litigation and restructuring costs. Standard Chartered loss narrowed on cost cuts. Standard Life net soared 33%.

[R]4:00 PM Frankfurt – British Air parent launched a share buyback program. Pearson reported largest loss on impairment charge. RBS reported wider-than-expected loss on litigation and restructuring costs. Standard Chartered loss narrowed on cost cuts. Standard Life net soared 33%.[/R]

In London trading, FTSE 100 index dropped 67.23 or 0.9%^to 7,204.16 and in Frankfurt the DAX index plummeted 220.62 or 1.8% to 11,730.18.

In Paris, CAC 40 index declined 84.77 or 1.7% to 4,806.52.

For the week, FTSE 100 index slumped 1.3%, the DAX index fell 0.3% and the CAC 40 index dropped 1.3%.

International Consolidated Airlines Group S.A jumped 2.2% to 515.50 after the U.K.-based airline services provider reported total revenues in the year ending in December fell 1.3% from a year ago to €22.6 billion.

Net income in the year surged 28.8% from a year ago to €1.9 billion from €1.5 billion and diluted earnings per share advanced to €88.5 from €70.4.

Total passenger revenues in the year decreased 2% to €19.9 billion and passenger unit revenue in the fourth-quarter plunged 12.7% but operating profit increased to €620 million from €530 million in a year ago period.

The British Airways parent IAG said it will launch share buyback program for up to €500 million and the program may be implemented through one or more share buyback programs.

Pearson Plc advanced 2.5% to 662 pence after the education and media services provider said revenues in the year ending in December plummeted 8% from a year ago to £4.6 billion.

Net in the year swung to a loss of £2.3 billion compared to £823 million profit and diluted loss per share swung to 286.8 pence from diluted earnings per share of 101.2 pence.

The publisher said net debt as of December 2016, increased to £1.1 billion from £654 million.

Royal Bank of Scotland Group Plc declined 4.4% to 238.50 pence after the U.K.-based banking and financial services provider reported total revenues in the year ending in December fell 2% from a year ago to £12.6 billion.

Net loss in the year widened to from a year ago to £6.96 billion from £1.98 billion and diluted loss per share increased to 59.5 pence from 17.2 pence.

The lender will cut additional £750 million of costs and also reduce £2 billion of costs out of the business in the next four years and estimate to profit by 2018.

The bank set aside £2.9 billion to date for PPI claims, including additional provision of £362 million in 2016

Standard Chartered Plc slumped 3.6% to 723.70 pence after the U.K.-based banking services provider stated interest income in the year plunged 10.9% from a year ago to $13 billion.

Net loss in the year narrowed from a year ago to $247 million compared to $2.2 billion and diluted loss per share dropped to 14.5 cents from 91.9 cents.

The bank said restructuring costs in the year fell $855 million from $1.85 billion in 2015 and bad loans declined 41% to $2.38 billion.

Standard Life Plc slipped 1.4% to 370 pence after the U.K.-based life insurance services provider said total revenues in the year ending in December advanced 4.4% from a year ago to £1.7 billion.

Net profit in the year soared 33% from a year ago to $368 million from $276 million and diluted earnings per share jumped to 29.5 cents from 26.1 cents.

The investment services provider said revenue increase was mainly due to income of equity securities from other than dividend income of £9.8 billion and income in debt securities of about £7.2 billion.