European markets experienced mixed reactions on Thursday after major companies released their latest financial results. Generali, Italy’s leading insurer, and Vienna Insurance, based in Austria, posted strong profits. Meanwhile, Deliveroo, the British food delivery firm, made its first-ever profit but saw its stock drop. On the other hand, Hugo Boss faced a decline in profits, while Deutsche Bank announced a boost in bonuses for its traders.

Generali Reports Record Profit

Generali, one of Italy’s largest insurers, reported a record operating profit for 2024. The company earned €7.3 billion, an 8.2% increase from the year before. This success came mainly from the Asset & Wealth Management division, which saw strong growth.

Generali’s net profit also grew by 5.4% to €3.8 billion, another company record. CEO Philippe Donnet shared his excitement about the results, saying, “The Group is in its strongest position ever, reflected in our record results achieved through the dedication of our employees.”

In addition, the company’s managed assets surged by 31.6% to €863 billion, helped by higher net inflows and the consolidation of Conning Holdings Limited. Generali’s gross written premiums also grew by 14.9% to €95.2 billion. The company’s growth was driven by strong performances in life, property, and casualty insurance.

Generali’s board has proposed an increase in its dividend per share. They suggest raising it by 11.7% to €1.43. Shareholders will vote on this proposal at the company’s general meeting on April 23-24.

Vienna Insurance Shows Strong Growth

Vienna Insurance Group, another major European insurer, also showed good results. It reported a 14.1% increase in pre-tax profit, reaching €881.8 million. This growth came from an 11% rise in insurance service revenue.

Investors responded positively to the strong results, pushing the company’s stock up by 1.3%. The company also announced a 10.7% increase in its dividend, proposing €1.55 per share. This has further boosted investor confidence in Vienna Insurance’s outlook.

Deliveroo Turns Profit, But Stock Drops

In the UK, Deliveroo made headlines as it reported its first-ever annual profit. The food delivery company earned £2.9 million (€3.5 million) in net income. This success came as the company expanded into grocery deliveries and secured new partnerships with large retailers.

Deliveroo’s revenue also grew by 3%, reaching £2 billion (€2.47 billion). CEO Will Shu pointed out that the company saw growth in its Gross Transaction Value (GTV) across multiple areas of business.

Despite these achievements, Deliveroo’s stock fell by nearly 7% in early trading. The drop was due to concerns over weak consumer demand. The company is still facing challenges as it tries to grow in a competitive market.

Deutsche Bank Boosts Bonus Pool

Deutsche Bank made news for increasing its bonus pool for traders and dealmakers. The bank raised its payout by 25%, bringing the total to €2.5 billion. This is the largest bonus payout from Deutsche Bank since 2014.

The bank’s strong performance comes from high demand for financial services. There has been an increase in trading volumes and dealmaking, especially in mergers and acquisitions. The rise in bonuses reflects the bank’s strong position in the market.

Hugo Boss Faces Profit Decline

In Germany, Hugo Boss faced a tough year. The fashion company reported record sales of €4.3 billion, a 3% increase from the previous year. However, the company struggled with profitability. Its operating profit fell by 12% to €361 million, while net income dropped 17% to €224 million.

Hugo Boss blamed economic uncertainty for the decline in profits. Weak consumer spending and inflation were major factors in the company’s challenges. Investor sentiment turned negative, with Hugo Boss shares falling more than 3% after the announcement.

Polish Banks Perform Well

Poland’s banking sector showed strong performance, led by PKO Bank Polski and BNP Paribas BP. PKO Bank Polski reported a net profit of PLN 9.3 billion (€2.22 billion), a 69.1% increase from the previous year. The bank’s assets grew to PLN 525 billion (€125 billion), thanks to strong loan growth in both corporate and retail sectors.

BNP Paribas BP, the Polish arm of the French bank, also saw impressive results. The bank reported a 133% surge in net profit, reaching PLN 2.4 billion (€570 million). Both banks have benefited from rising interest rates and a stable economic environment in Poland.

European Markets Face Mixed Outlook

The earnings reports from major European companies paint a mixed picture. While companies like Generali and Vienna Insurance show resilience and growth, others like Deliveroo and Hugo Boss are dealing with challenges from slow consumer demand and global economic uncertainty.

Investors will be closely watching the second quarter of 2025 to see how these companies fare in the face of economic challenges. While the financial and insurance sectors are holding strong, the retail and delivery sectors face pressure from market conditions.

The next few months will be crucial for European companies, and investors will need to stay vigilant as they navigate these uncertain times. As the economy shifts, these companies will need to adjust their strategies to stay competitive and continue their growth.