European Banks UniCredit, ING, Intesa Up

Trupti Mehta
11 Nov, 2009
New York City

European banks advanced after better than expected earnings from Credit Agricole SA, ING Groep NV, Intesa Sanpaolo SpA and UniCredit SpA. Switzerland based Holcim Ltd reported better than expected earnings on cost cutting. Sainsbury net in the first half rises 48%. HK Stock Exchange net surges.

9:10 AM New York – European banks advanced after better than expected earnings from Credit Agricole SA, ING Groep NV, Intesa Sanpaolo SpA and UniCredit SpA. Switzerland based Holcim Ltd reported better than expected earnings on cost cutting. Sainsbury net in the first half rises 48%. HK Stock Exchange net surges.[/R]

European investors focused on earnings. Credit Agricole third quarter net increased 20%. Holcim Ltd, the Swiss cement maker reported flat third quarter net on the sales decline of 18%, but ahead of markets expectations.

ING Groep NV, Intesa Sanpaolo SpA and UniCredit SpA reported better than expected earnings.

The pound decreased against the euro by as much as 0.6% after the Bank of England Governor Mervyn King said that the central bank has an “open mind” to buy additional UK Treasury bonds.

Earnings Review

Credit Agricole SA, the banking group said third quarter net banking income rose 20% to €4.8 billion from €4.0 billion a year ago. Net profit in the quarter fell 20.8% to €289 million compared to net profit of €365 million a year ago.

Henkel AG & Co, the household consumer products maker said third quarter sales fell 7.2% to €3.49 billion from €3.76 billion a year ago. Net profit in the quarter rose 70% to €172 million or €0.39 per diluted share compared to net profit of €101 million or €0.23 per share a year ago.

Holcim Ltd, the supplier of cement said third quarter sales fell 17.7% to CHF5.69 billion from CHF6.91 billion a year ago. Net profit in the quarter was flat at CHF673 million or CHF2.12 per diluted share compared to net profit of CHF673 million or CHF2.37 per share a year ago.

ING Groep N.V., the global financial institution said net profit in the third quarter was €499 million or €0.25 per diluted share compared to net loss of €478 million or €0.22 per share a year ago.

ING Groep N.V., in the last one year traded as high as €18.19 in October 2009 and as low as €3.02 in March 2009. Based on the yesterday’s closing price of €14.50 the company has market cap of €29.39 billion.

Intesa Sanpaolo SpA, the banking group said nine months net interest income fell 7.7% to €8.07 billion from €8.74 billion a year ago. Net profit in the nine months fell 40.2% to €2.26 billion or €0.18 per diluted share compared to net profit of €3.78 billion or €0.30 per share a year ago.

Mediaset SpA, the communications and broadcasting group said third quarter revenues fell 6% to €700.4 million from €746.6 million a year ago. Net profit in the quarter fell 40.4% to €3.4 million compared to net profit of €5.7 million a year ago.

Television Francaise 1 SA, the television broadcasting and communication group said third quarter revenues fell 2.5% to €498.4 million from €511.1 million a year ago. Net profit in the quarter was €1.7 million or €0.01 per diluted share compared to net loss of €14.5 million or €0.07 per share a year ago.

Thales SA, an electronics company said third quarter revenues fell 2% to €2.59 billion from €2.64 billion a year ago. Aerospace & Space sales fell 4.6% to €800 million from €839 million a year ago. Security sales rose 3.2% to €640 million from €620 million a year ago. Defence sales flat at €1.14 billion from €1.14 billion a year ago.

UniCredit SpA, the bank said third quarter net interest income fell 18.7% to €3.99 billion from €4.91 billion a year ago. Net profit in the quarter fell 26% to €394 million compared to net profit of €532 million a year ago.

Aiful Corporation, the financial service provider in Japan said first-half revenues fell 27% to ¥121.8 billion from ¥165.7 billion a year ago. Net loss for the quarter was ¥282.3 billion compared to net profit of ¥7.2 billion a year ago.

Shinsei Bank, Limited, the Japanese bank said first-half revenues rose 62% to ¥165.8 billion from ¥102.3 billion a year ago. Net profit for the quarter was ¥11.0 billion compared to net loss of ¥19.2 billion a year ago.

J Sainsbury plc, the grocery and related retailer said first-half revenues rose 5% to £10.4 billion from £9.9 billion a year ago. Net profit for the first-half rose 48% to £252 million or 13.8 pence per diluted share compared to net profit of £170 million or 9.6 pence per share a year ago.

Hong Kong Exchanges and Clearing Limited, the stock market reported third quarter revenues rose 14% to HK$1.87 billion from HK$1.64 billion a year ago. Net profit in the quarter rose 33% to HK$1.27 billion or HK$1.18 per diluted share compared to net profit of HK$959.6 million or HK$0.89 per share a year ago.

Tencent Holdings Limited, the provider of internet and mobile & telecommunications value-added services reported third quarter revenues rose 66.8% to Rmb 3.37 billion from Rmb 2.02 billion a year ago. Net profit in the quarter rose 93% to Rmb 1.42 billion or Rmb 0.77 per diluted share compared to net profit of Rmb 737.1 million or Rmb 0.40 per share a year ago.