Sector Update: Financial Shares Higher in Pre-Market Session – Ambac Swings to Q3 Profit

08:56 AM Eastern Standard Time, 11/04/2009 (MidnightTrader) — Dow Jones U.S. Financials Index: +0.55 (+0.21%) at 262.92 (Tuesday regular session close)

Top Financial Stocks

JPM: +0.91%

BAC: +2.36%

WFC: +0.94%

GS: +1.01%

C: +1.24%

Financial shares are higher in the pre-market session. Ambac Financial (ABK) soars after swinging to Q3 profit. Bank of Ireland (IRE) spikes after announcing it plans to transfer 16 billion euros of loans to the National Asset Management Agency. Marsh & McLennan (MMC) is down fractionally after missing for Q3 sales.

Ambac Financial swung to Q3 EPS of $7.58 from a loss, reflecting significant unrealized mark-to-market gains in the credit derivatives portfolio and gains resulting from reinsurance cancellations during the quarter.

Bank of Ireland profit dropped 73% to 162 million euros ($238 million) in the 1H as total income fell 14% to 1.73 billion euros. The company took a 1.79 billion euro impairment charge on loans and advances to customers, compared to the 267 million euro hit in the prior year period, according to Marketwatch.com. Excluding a gain on the repurchase of non-core Tier 1 debt securities, it would have lost 979 million euros before tax. It plans to transfer 16 billion euros of loans to the National Asset Management Agency and warned that depending on the discount given, it may trigger impairments which would hurt its capital and potentially require it to tap fresh Irish government capital, Marketwatch.com reported.

Marsh & McLennan Q3 adjusted EPS rose to $0.48 from $0.20, beating the Thomson Reuters mean analyst estimate for $0.26. Revenue declined 11% to $2.5 billion. The Street looked for $2.6 billion.