FTSE 100 drops as NatWest third quarter earnings disappoint



The FTSE 100 ended the week in the red. The London blue chip index fell 0.2% on Friday, dragged down by major mining and oil companies. Rio Tinto, BHP, BP and Shell pushed the index lower. But the worst performance was a bank, NatWest, whose shares fell 4.5% after releasing third quarter results. “The backlash can be explained in part by the fact that NatWest stocks have been one of the top 10 performing stocks on the FTSE 100 since the start of the year, and in reality the numbers should have been better,” he said. said Michael Hewson of CMC Markets.

Companies News: 

Time Out expects a return to pre-Covid performance in the short term

Time Out Group PLC said on Friday it was confident in a return to pre-Covid performance levels in the coming months, as it announced revenue for the 18 months that were impacted by the coronavirus restrictions.

TBC Bank $ 75 Million Subordinated Note Price

TBC Bank Group PLC said on Friday it had attracted strong demand from investors across Europe, the UK and the US after pricing $ 75 million in subordinated notes.

Tintra 1H 2022 Extended loss before tax

Tintra PLC said on Friday that its pre-tax loss widened for the first half of fiscal 2022, recorded higher costs, but the board was looking forward to the next six months with optimism.

Limitless Earth reports extended 1H net loss

Limitless Earth PLC on Friday announced an expanded net loss for the first half of the fiscal year.

9-month revenue increase for Nostrum Oil & Gas; Rise in shares

Nostrum Oil & Gas PLC shares rose on Friday after it said it expected revenue for the first nine months of 2021 to be higher year on year, despite lower production.

Scancell’s pre-tax loss for fiscal 2021 widened due to increased expenses

Scancell Holdings PLC said on Friday that its pre-tax loss for fiscal 2021 had widened significantly due to increased administration and development costs, higher interest and finance charges.

Serica Energy Reduces Net Production for the Year Due to Delay in Columbus Field Production

Serica Energy PLC said on Friday that its annual net production is expected to be slightly lower than expected due to delays affecting its Columbus field, located in the UK’s North Sea.

Panthera Resources to acquire Indian partner JV for $ 1.4 million

Panthera Resources PLC announced on Friday that it will acquire its Indian joint venture partner, Metal Mining India Private Ltd., or MMI, for A $ 1.8 million ($ 1.4 million).

SysGroup predicts first-half 2022 revenue and lower adjusted EBITDA

SysGroup PLC said on Friday it expects lower revenue and adjusted EBITDA for the first half of fiscal 2022, and the long-term outlook for the company and its market will remain very positive.

Plus500 Board of Directors approves additional share buyback

Plus500 Ltd. announced Friday that it will acquire an additional $ 12.6 million of its own share capital as part of its share buyback program.

Condor Gold has raised £ 4.1million as part of a feasibility study, a new plant

Condor Gold PLC said on Friday it had raised 4.1 million pounds ($ 5.7 million) through a private placement of shares, to pay for a feasibility study and the balance of a new plant.

NatWest Q3 Pre-Tax Profit More Than Tripled, Beating Market Views – Update

NatWest Group PLC on Friday reported more than tripled profit before tax for the third quarter, higher than market forecast, and said its guidance for 2021 remained unchanged.

Management views slightly outdated by Computacenter 3Q; Supports the 2021 orientations

Computacenter PLC said on Friday its third quarter ended slightly above expectations, and it backed its full-year guidance for record earnings, earnings and earnings per share.

Market Talk: 

BOE Likely To Raise Rates Next Week And Cut QE, Deutsche Bank Says

09:35 GMT – The Bank of England is likely to increase borrowing costs next week and cut bond purchases to end the program six weeks earlier than expected, according to Deutsche Bank. Amending its previous call, the German bank now expects rate setters to hike the base rate to 0.25% from 0.1% in a 6-3 vote on November 4 and cut it short. quantitative easing. “We are now seeing the Monetary Policy Committee end its QE at the November meeting – cutting its QE envelope by around £ 20 billion,” DB’s Sanjay Raja said. The BOE’s £ 150 bond buying program is currently scheduled to end in December, bringing the central bank’s target stock of asset purchases to £ 895 billion, including £ 20 billion of bonds companies.

UK government plans for sewer overflows could benefit United Utilities

0912 GMT – The UK government’s plan to introduce a requirement to improve the quality of wastewater discharges from storm overflows could be a medium-term opportunity for United Utilities to accelerate growth, analyst says by HSBC Verity Mitchell. United Utilities has by far the highest number of overflows in the UK, she notes. “Could this be an opportunity for UU to invest in reducing the number of events? With increased public and political scrutiny, this could provide more asset growth to make environmental improvements,” Mitchell said. HSBC upgrades the water company to keep it from going down and raises the target price to 1,090 pence from 970 pence.

Computacenter’s Q3 update looks positive in the face of market demand

0900 GMT – Computacenter’s Q3 update keeps a positive tone on market demand, with year-over-year growth slightly above expectations, Goodbody said. The UK IT group’s order book for technology procurement is at record levels, and although the reading for the company is indirect given the emphasis on systems integration rather than on distribution, it provides a marker on the relative demand for technology – albeit one with a bias towards commercial demand rather than consumer demand, according to the Irish brokerage house. “For the year through March, we forecast annual growth of 3.3% in revenue and 6.2% in EBIT for Exertis, the technology division of Computacenter, accounting for 13% of Group Ebita, ”Goodbody said. Goodbody maintains its buy recommendation. Shares are down 2.3% to 2,690 pence.

NatWest’s Third Quarter Net Interest Margin Likely to Attract Investor Attention

0752 GMT – Investor attention to NatWest Group’s third quarter results will likely be its net interest margin contraction in the quarter, Jefferies said. The FTSE 100-listed bank is a rate-sensitive lender, with a Tier 1 common stock ratio – a key measure of balance sheet strength – of 18.7%, says Jefferies, noting that the bank has an endowment problem. to have too much capital. “The investment case is therefore based on the repatriation of this capital and the realization by the bank of higher net interest income via the rates”, explains Jefferies. Shares are down 5.4% to 219.00 pence.

NatWest’s share price falls despite larger-than-expected earnings

0747 GMT – The market reaction to NatWest’s third quarter results has been a bit disappointing, with stocks falling to the bottom of the FTSE 100 index, said Michael Hewson, chief market analyst at CMC Markets UK. Pre-tax profit, net income and lender income exceeded market expectations, but net income was still nearly half of the level reached in the second quarter, Hewson said. “After seeing decent numbers from Lloyds and Barclays, expectations were high for NatWest Group’s third quarter numbers today,” Hewson said. The fact that the bank recorded a charge of £ 294million after pleading guilty to money laundering charges did not help to bolster sentiment, he said. Shares are down 5.4% to 219.00 pence.

Glencore’s 2021 Marketing Directions Upgrade Was Expected By The Market

0700 GMT – Glencore said it expects Adjusted EBIT from its marketing activities to exceed the high end of the long-term forecast range of $ 2.2 billion to $ 3.2 billion in 2021. This is positive, but also expected after a strong performance in the first half and as commodities markets remained tight in the second half, according to RBC Capital Markets. The market consensus for Glencore’s marketing EBIT in 2021 is $ 3.5 billion, RBC notes. As for production, the third-quarter figures were slightly weaker, but the annual forecast ranges have been reaffirmed, according to the bank. The most notable failure was nickel, which was 18% lower than RBC forecast. “We continue to see Glencore in a favorable position relative to its peers.”


Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at [email protected]


(END) Dow Jones Newswires

October 29, 2021 12:19 p.m. ET (4:19 p.m. GMT)

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