BNP Paribas Second-Quarter Profit Falls But Beats Forecasts -- Update
July 28 2017 - 1:34AM
Dow Jones News
By Matthew Dalton and Noemie Bisserbe
PARIS--French bank BNP Paribas SA (BNP.FR) reported
better-than-expected net profit for the second quarter, aided by
strong results at its corporate and investment-banking
division.
The Paris-based lender, France's largest listed bank by assets,
said Friday that net profit fell 6.4% to 2.4 billion euros ($2.80
billion) from EUR2.56 billion a year earlier. That beat analysts'
expectations for profit of EUR1.94 billion, according to a poll by
data provider FactSet.
Revenue declined 3.4% to EUR10.94 billion. Excluding a one-time
capital gain of EUR597 million in the quarter a year ago, revenue
in the second quarter rose 2.5%. That gain came from the sale of
shares BNP owned in Visa Europe.
BNP Paribas's second-quarter earnings highlight an economic
pickup in Europe that boosted business at several of the bank's
divisions.
BNP's corporate and investment-bank pretax income surged 48.7%
in the latest quarter to EUR3.2 billion. Revenue from trading of
bonds and other fixed-income products fell 16%, hit by a slowdown
in the business that has swept across European and U.S. banking.
But the decline was offset by gains in corporate-banking business,
such as trade finance and cash management.
The bank's international financial-services division, which
includes retail banks outside the eurozone, wealth management,
consumer finance and insurance, posted a 11.3% increase in pretax
income to EUR1.41 billion.
Pretax profit for BNP's retail banks in France, Italy, Belgium
and Luxembourg fell 0.2% to EUR1.05 billion, hurt by continued low
interest rates in Europe. Still, BNP reported strong loan growth in
France, Italy and Belgium.
The bank's core Tier 1 ratio, which measures its top quality
capital such as equity and retained earnings against risk-weighted
assets, rose to 11.7% in June from 11.6% in March.
BNP Paribas is the first major French bank to report
second-quarter earnings. Societe Generale SA (GLE.FR) is set to
report results on Aug. 2 and Credit Agricole SA (ACA.FR) will
publish its earnings on Aug. 3.
Write to Matthew Dalton at matthew.dalton@wsj.com and Noemie
Bisserbe at Noemie.Bisserbe@wsj.com
(END) Dow Jones Newswires
July 28, 2017 02:19 ET (06:19 GMT)
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