Barclays Net Swings to Profit, Amundi Assets Jumps; BMW Expands in Hungary

Sarla Buch
02 Aug, 2018
New York City

Amundi assets under management jumped 8% to

[R]4:00 PM Frankfurt – Amundi assets under management jumped 8% to €1.5 trillion. AXA agreed to sell AXA Life Europe for €1.2 billion. Barclays net swung to profit. BMW said it plans to expand production in Hungary. Rolls-Royce net swung to a loss. Societe Generale to sell its business in Bulgaria.[/R]

In London trading, FTSE 100 index slumped 71.40 or 0.9% to 7,582.21 and in Frankfurt the DAX index declined 174.74 or 1.4% to 12,560.27.

In Paris, CAC 40 index slipped 28.73 or 0.5% to 5,469.63.

Amundi SA soared 8.1% to €63.16 after France-based asset manager said net revenues in the first-half ending in June soared 42.9% from a year ago to €1.3 billion.

Net profit in the period surged 57.6% to €454 million from €288 million in the same period a year ago.

The asset manager said as of June 30, assets under management jumped 7.5% to €1.5 trillion from €1.4 trillion in the same period a year ago across its six main investment businesses.

AXA SA gained 1.8% to €22.08 after France-based insurance serviced provider reported total revenues in the first-half ending in June fell 1% from a year ago to €53.6 billion.

Net profit in the period declined 14% to €2.8 billion from €3.3 billion in the same period a year ago and diluted earnings per share slid to €1.12 from €1.30.

Separately, the insurer confirmed that it agreed to sell its subsidiary AXA Life Europe to private equity firm Cinven for €1.2 billion or $1.4 billion.

The transaction is expected to close by the end of 2018 or early 2019.

Barclays Plc slumped 2.4% to 187.10 pence after the U.K.-based investment bank and financial services provider said revenues in the first-half ending in June rose 0.5% from a year ago to £10.9 billion.

Net in the period swung to profit £468 million from £1.2 billion loss in the same period a year ago and diluted earnings per share swung to 3.2 pence from diluted loss per share of 6.5 pence.

Bayerische Motoren Werke AG dropped 1.2% to €80.53 after Germany-based luxury automaker reported revenues in the first-half ending in June declined 4% from a year ago to €47.7 billion.

Net profit in the period dropped 2.7% to €4.3 billion from €4.5 billion in the same period a year ago and diluted earnings per share fell to €6.60 from €6.79.

The vehicle maker said it plans to expand production network in Hungary with a new plant with an investment of about €1 billion and with a target annual production of 150,000 units.

BMW said it is set to deliver more than 140,000 electrified vehicles in 2018.

Rolls-Royce Holdings Plc jumped 6.3% to 1,049.50 pence after the U.K.-based luxury automobile and aircraft engine maker said revenues in the first-half ending in June jumped 12% from a year ago to £7.5 billion.

Net in the period swung to a loss of £960 million from revised profit of £3.7 billion in the same period a year ago and diluted loss per share swung to 52.3 pence from diluted earnings per share of 199.8 pence.

The aircraft engine maker said costs from in-service issues with components reached £450 million or $589 million and £554 million to cover costs related to problems with its jet engine production.

Societe Generale SA dropped 2.2% to €37.12 after France-based banking and financial services provider reported revenues in the first-half ending in June soared 9.2% from a year ago to €12.7 billion.

Net in the period swung to a loss of €41 million from profit of €245 million in the same period a year ago and diluted earnings per share slid to €3.02 from €3.30.

The lender said operating profit in the period surged 29.9% to €3.2 billion from a year ago period on strong net banking income

Separately, the bank signed an agreement to sell its majority stakes in Societe Generale Expressbank (Bulgaria) and Societe Generale Albania to OTP Bank to reduce the group’s risk weighted assets by €3 billion.