Strong financial results from Italy’s Generali Group and Poland’s PKO Bank Polski stood in contrast to Hugo Boss’ declining profits on Thursday. Generali, Italy’s largest insurer, posted record-breaking earnings, while PKO Bank Polski impressed investors with outstanding growth. However, Hugo Boss faced challenges due to weak consumer spending.
Generali Hits Record Profits Ahead of Shareholder Meeting
Generali Group reported record profits for 2024, boosting confidence as CEO Philippe Donnet prepares for a key shareholder vote next month. The insurer’s operating profit climbed 8.2% to an all-time high of €7.3 billion. The rise was driven by strong performance in its Asset & Wealth Management division.
Net profit adjusted for special items grew 5.4% to €3.8 billion, setting another record for the company. “The Group today is stronger than ever, proven by our record-breaking profits achieved through the dedication of our employees,” Donnet said in a statement.
Total assets under management jumped 31.6% to €863 billion. This increase came from higher net inflows and the acquisition of Conning Holdings Limited. Gross written premiums also saw a sharp rise of 14.9%, reaching €95.2 billion. The growth was fueled by strong life, property, and casualty insurance sales.
The board proposed an 11.7% increase in dividends to €1.43 per share. This comes ahead of the company’s crucial investor meeting scheduled for April 23-24.
Insurance Sector Sees Widespread Growth
Other insurers also posted strong earnings. Vienna Insurance Group AG saw pre-tax profit jump 14.1% to €881.8 million in 2024. The company’s revenue from insurance services increased by 11% to €12 billion. Much of the growth came from property and casualty insurance.
Reflecting its solid financial position, the company proposed a dividend increase of 10.7% to €1.55 per share. Shares of Vienna Insurance Group rose 1.3% by early afternoon in European trading.
Meanwhile, Deutsche Bank’s latest annual report showed a major rise in its bonus pool. The bank allocated €2.5 billion in bonuses for traders and dealmakers, a 25% increase from the previous year. This marks the highest bonus payout since 2014.
PKO Bank Polski Reports Strong Growth
Poland’s largest bank, PKO Bank Polski, exceeded expectations with its 2024 financial performance. The bank’s net profit surged 69.1% to PLN 9.3 billion (€2.22 billion), pushing its share price up more than 3% by early afternoon.
Total assets reached PLN 525 billion (€125 billion). The bank also saw its income from core activities rise 19.6%. The statement noted that PKO Bank Polski accelerated corporate lending in the fourth quarter while maintaining double-digit growth in retail loans.
By the end of 2024, PKO Bank Polski’s market capitalization had climbed 19% to PLN 74.7 billion (€17.8 billion).
BNP Paribas Bank Polska, the Polish arm of the French banking giant, also had a strong year. Its net profit soared 133% to PLN 2.4 billion (€570 million). Net interest income rose 9.9% to PLN 5.74 billion (€1.37 billion), showing continued strong demand for banking services.
Retail and Consumer Sectors Show Mixed Results
British food delivery giant Deliveroo reported its first-ever full-year profit in 2024. The company benefited from expanded grocery partnerships, which helped revenue rise 3% to £2 billion (€2.47 billion). Net profit reached £2.9 million (€3.5 million), a major turnaround from a £32 million loss in 2023.
CEO Will Shu was optimistic about the company’s direction. “Today’s results prove our strategy is working, with GTV growth and positive free cash flow,” he said.
However, concerns over weak consumer sentiment weighed on Deliveroo’s stock. Shares dropped nearly 7% by early afternoon. Adding to the challenges, the company announced plans to exit the Hong Kong market due to tough competition and declining sales.
Meanwhile, German fashion brand Hugo Boss saw record sales but struggled with declining profits. Sales increased by 3% to €4.3 billion. However, operating profit fell 12% to €361 million, and net income dropped 17% to €224 million.
Investors reacted negatively to the profit decline. Hugo Boss’ shares fell more than 3% in early afternoon trading. The company blamed economic uncertainty and lower consumer spending for its struggles.
Market Reactions and Future Outlook
The strong financial performances of Generali and PKO Bank Polski show resilience in the business sectors of insurance and banking. On the other hand, Hugo Boss’ declining margins highlight challenges in the consumer market.
Investors will be closely watching Generali’s shareholder meeting in April. PKO Bank Polski’s continued growth also signals confidence in Poland’s banking sector. However, the struggles of Hugo Boss and Deliveroo indicate that the consumer business sector still faces headwinds.