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Bank results paint mixed picture
We've had a slew of data out from European Banks; Barclays, UBS and Banco Santander have reported earnings and they paint a mixed picture. But overall Saxo Bank's Peter Garnry says the outlook remains positive for these major financial institutions.
British bank Barclays reported a 17 per cent drop in half-year adjusted profit of GBP 3.59bn, as it announced a GBP 5.8 billion capital-raising rights issue. The bank has set aside a payment protection insurance (PPI) mis-selling provision of GBP 1.3 billion, and GBP 650 million has been put aside for provisions in relation to interest rate swaps. The total mis-selling bill for the bank now stands at GBP 5.5 billion.
Meanwhile, Switzerland's largest bank UBS, reported a 32 per cent rise in second-quarter earnings; net income was CFH 690 million, compared with CFH 524 million last year. This beat forecasts even though it agreed to settle a lawsuit with the US housing regulator over the mis-selling of mortgage-backed bonds.
And in Spain, Banco Santander reported a 29 per cent jump in earnings in the six months to July, net income rose to EUR 2.26 compared with EUR 1.75 last year.
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