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Let's take a look at some of the stocks on the mood today here in Europe. I'm Caroline Hepca with Tom McKenzie with John Bupplinberg's Colomba Lay. Good morning, more loads of earnings to think about in Europe. Let's start with that West the lender raising its guidance.
Yeah, very good morning for Network with a positive update kind of across the board. So, as you mentioned, raised its income and returns guidance, also delivered its highest earnings in at least a decade. And then also the net interest margin, which is really a key measure of profitability, was also higher. It also set aside lesson expected to cover bad loans, which kind of suggests that the quality of its loan portfolio is in good shape. This is
the third UK bank to report this week. We had Barclay's and Lloyd's as well earlier, and arguably Networks is the one that delivered the most impressive results and therefore has seen the biggest kind of reward by the market, with shares really rising this morning, but overall the UK banking sector seems to be doing pretty well. Both Lloyds and Barclays also upgraded at least part of their guidance.
Barclay's obviously a new buyback, and they've all kind of signaled that UK customers are resilient and coping quite well with inflation and with a weaker jobs market. We do have the budget come in next month. Of course, all of that might change, but for now UK banks are holding up well, and that Works in particular is holding up very well.
Okay, So from the banking space to the pharmaceutical space. Sonafi are also in focus and profit rising more more than expected last quarter.
Yeah, profit beat because of really strong demand for its blogbuster asthma drug called jupix and so the sales of Jupixen reached a record in the quarter and it's expected to generate more than twenty one billion euros in annual revenue at its peak, which makes it so Nophi's most important biggest medice by quite a long shot. That profit be and the fact that gupis and cells were really solid overshadowed was well. Another part of the earnings, which was a bit of more bit more of a weak spot,
which is the vaccine segment. So so Nofi said that cells of flu shots fell quite significantly. It blamed that on price competition in Europe and then also lower vaccination rates in the US. The CFO also said there was maybe a little bit of post covid fatigue and quite negative as sentiment around vaccines, which obviously could be quite a challenge going forward for so Nofie and other pharmaceutical peers.
On the tariff side of things, and IPHI said it is in constant discussions with the US, though it actually did not make a deal like we've seen with Faiso or Aslanka or merk where we've seen those companies trying to well cutting a deal with the US to lower drug costs in exchange for that tariff relief. So so Nofia has not done that yet, but it is in discussion with the US about those tariffs.
Okay, So that's on the farmer's story. Very US dependent too, isn't it. Let's also think about defense and the momentum that SAAB has. The CEO also making some comments speaking to Bloomberg.
Yeah, absolutely, so the Swedish defense company It boosted its revenue guidance this morning. It said that it's obviously benefiting from the uncertain geopolitical landscape that we are dealing with at the moment and all the tensions across the world. It said that it's got a record high order backlog, a really strong demand and as you said, the CEO was on Bloomberg TV and saying that he expects that
momentum to be sustained going forward. We also had another positive update that this morning from another defense company, Hensalt in Germany, which provided margin guidance. There was also a head of estimates and the stock rose quite a bit on the back of that as well. It seems that the boost from increased military spending is really starting to feed through for those defense companies, with orders starting to
translate into profit. And given that attempt to broke a piece in Ukraine seem to be facing quite a lot of obstacles that will be probably continuing as well.
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