Declines in shares of financial companies sent the FTSE Eurofirst 300 down by 0.8 percent to 1,379.72 on Wednesday. While financials posted generally positive quarterly reports, investors took profits, sending share prices down.
In the banking sector, both Deutsche Bank and Credit Suisse issued quarterly reports this week that showed profits up more than had been expected. Credit Suisse said Tuesday that it had achieved record profits in its investment banking division, but because some analysts wondered whether those profits could be sustained over the longer term, Credit Suisse dropped 2.3 percent on the day to SFr77.10. Meanwhile, Deutsche Bank reported a net profit of 55 percent in the first quarter. It also announced a share buyback plan for up to 10 percent of its shares. Despite this news, Deutsche Bank was down 1.7 percent to €95.56. Nordea was also down, by 2.4 percent to SKr93.50, even though its first-quarter earnings were higher than had been expected.
German insurer Allianz also saw its share price decline on the day even though its quarterly report showed earnings higher than predicted. Allianz dropped 1.7 percent to €131.60.
A report of record first-quarter profits didn’t help BMW avoid a losing session, either. Despite healthy sales in Europe and the US in April and an 81 percent increase in net income in the quarter, the automobile manufacturer saw its shares decline by 2.7 percent to €42.26.
In the construction sector, Spanish company Grupo Ferrovial was up 2.9 percent to €67 after it released a first-quarter report showing net profits were up 43.6 percent. However UK operator BAA again rejected Ferrovial’s bid even after Ferrovial said that it would raise its bid if it was allowed to complete due diligence. BAA said that Ferrovial’s bid had undervalued its business.