E.ON Energy Networks Profit Declines, Munich Re Net Surges

Sarla Buch
08 Aug, 2018
New York City

ABN AMRO profit declined on higher impairments charges. E.ON net plunged after weak energy networks business. Munich Re profit surged 21%. Prudential net declined but profit in the Asia surged

[R]4:00 PM Frankfurt – ABN AMRO profit declined on higher impairments charges. E.ON net plunged after weak energy networks business. Munich Re profit surged 21%. Prudential net declined but profit in the Asia surged.[/R]

In London trading, FTSE 100 index decreased 41.52 or 0.5% to 7,760.24 and in Frankfurt the DAX index fell 35.63 or 0.3% to 12,612.56.

In Paris, CAC 40 index slipped 20.58 or 0.4% to 5,500.73.

ABN AMRO Group NV soared 3.4% to €24.13 after the Netherlands-based banking and financial services provider reported interest income in the first-half ending in June dropped 2.5% from a year ago to €10.1 billion.

Net profit in the period declined 17.9% to €1.3 billion from €1.6 billion in the same period a year ago and diluted earnings per share decreased to €1.30 from €1.64.

The bank booked impairment charges on financial instruments of about €314 million.

E.ON SE dropped 2.6% to €9.43 after Germany-based electric utility service provider said sales in the first-half ending in June tumbled 13% from a year ago to €17 billion.

Net profit in the period plunged 30% to €2.7 billion from €3.9 billion in the same period a year ago and diluted earnings per share slumped to €1.25 from €1.85.

Revenues in the energy networks business declined 30% to €6.1 billion from €8.6 billion in the same period a year ago, driven by netting effects in Germany and the Czech Republic.

The utility provider said as of June 30 it had reduced its net debt by 18% to €15.9 billion.

E.ON forecasted fiscal 2018 operating profit between €2.8 billion and €3 billion and net income in the range of €1.3 billion to €1.5 billion.

Munich Re slumped 2.6% to €182.85 after Germany-based reinsurance services provider reported gross premiums written in the first-half ending in June fell 1.7% from a year ago to €24.3 billion.

Net profit in the period surged 20.5% to €1.6 billion from €1.3 billion in the same period a year ago and diluted earnings per share jumped to €10.34 from €8.26.

The reinsurer forecasted fiscal 2018 gross premiums written between €46 billion and €49 billion and profit in the range of €2.1 billion to €2.5 billion.

Prudential Plc jumped 2.6% to 1,802.50 pence after the life insurance and financial services provider said gross premiums written in the first-half ending in June dropped 3.6% from a year ago to £21.3 billion.

Net income in the period declined 9.9% to £1.4 billion from £1.5 billion in a year ago period and diluted earnings per share slipped to 52.6 pence from 58.6 pence.

The insurer said new business profit in Asia surged 11% to £1.1 billion.