Deutsche Bank Returns to Profit, Lloyds Banking Profit Doubles

Sarla Buch
27 Apr, 2017
New York City

Bayer lifted revenues forecast after strong business in specialty plastics division. Banco Bilbao net jumped 69%. Deutsche Bank reported lower-than-expected revenue on negative impact of credit spreads. Lloyds Banking reported strong financial performance.

[R]4:00 PM Frankfurt – Bayer lifted revenues forecast after strong business in specialty plastics division. Banco Bilbao net jumped 69%. Deutsche Bank reported lower-than-expected revenue on negative impact of credit spreads. Lloyds Banking reported strong financial performance.[/R]

In London trading, FTSE 100 index dropped 38.30 or 0.5% to 7,232.44 and in Frankfurt the DAX index fell 12.05 to 12,460.44.

In Paris, CAC 40 index slumped 18.08 or 0.3% to 5,269.80.

Bayer AG jumped 4.8% to €113.25 after Germany-based healthcare products maker reported group sales in the first-quarter ending in March soared 11.7% from a year ago to €13.2 billion.

Net profit in the quarter surged 38% from a year ago to €2.1 billion from €1.5 billion and diluted earnings per share advanced to €2.39 from €1.83.

Bayer said improved sales in the quarter mainly after specialty plastics division and the pharmaceuticals business.

The pharmaceuticals and chemicals maker lifted fiscal 2017 revenues forecast to jump to €51 billion from the earlier estimate of €49 billion and operating profit to rise by a low-teen percentage points, up from an initial estimate of a mid-single-digit percentage increase.

Banco Bilbao Vizcaya Argentaria S.A slumped 2.8% to €7.40 after Spain-based diversified financial services provider stated net interest income in the first-quarter ending in March advanced 4.1% from a year ago to €4.3 billion.

Net profit in the quarter jumped 69% from a year ago to €1.2 billion from €709 million and diluted earnings per share grew to €0.17 from €0.10.

As of March 31, the bank said total assets of about €719 billion and customer strength of 70 million in 35 countries.

Banco Bilbao said deposits from customers in the quarter dropped 2.6% from a year ago to €398.5 billion and gross loans and advances to customers increased 0.8% from a year ago to €431.9 billion.

Deutsche Bank AG dropped 2.9% to €16.83 after Germany-based investment and banking services provider reported revenues in the first-quarter ending in March declined 9% from a year ago to €7.3 billion.

Net profit in the quarter soared 143% from a year ago to €575 million from €236 million and diluted earnings per share jumped to €0.38 from €0.15.

Deutsche Lufthansa AG declined 4.6% to €16.03 after Germany-controlled airline services provider reported revenues in the first-quarter ending in March jumped 11.2% from a year ago to €7.7 billion.

Net loss in the quarter widened from a year ago to €68 million from €8 million and diluted loss per share slumped to €0.15 from €0.02.

""We are seeing positive developments in the pricing environment and significantly higher traffic revenues,"" said chief financial officer Ulrik Svensson.

Kuka AG gained 0.9% to €109.85 after Germany-based robotics and automation solutions developer stated revenues in the first-quarter ending in March soared 25.7% from a year ago to €790.8 million.

Net profit in the quarter jumped 27.3% from a year ago to €26.6 million from €20.9 million and diluted earnings per share slipped to €0.67 from €0.54.

Lloyds Banking Group Plc advanced 2.4% to 68.98 pence after the U.K.-based financial services provider reported total revenues in the first-quarter ending in March rose 1% from a year ago to £4.4 billion.

Net income in the year surged 68% from a year ago to £890 million from £531 million and diluted earnings per share increased to 1.1 pence from 0.6 pence.

The bank said pre-tax profits doubled to £1.3 billion from £654 million in a year earlier despite £350 million set aside to cover liabilities arising from the selling of payment protection insurance and £100 million to cover compensation for victims of fraud by former HBOS staff.

Loans and advances to customers fell 1% £445 billion but customer deposits increased 0.5% to £415 billion and total assets in the quarter slid £817 billion from £818 billion.

""Moment of huge pride for all of us at Lloyds"""" and """"ability to respond to a challenging operating environment,"" said chief executive officer Antonio Horta-Osorio.

Horta-Osorio added the group decided, the victims of fraud will be ""fairly, swiftly and appropriately compensated.""