BNP Paribas revenue rises 8.5% as earnings beat expectations

BNP Paribas reported higher second-quarter profits on July 29, helped by rising income across all its divisions as it took advantage of higher net interest and fee income.

The French lender said its net profit rose to 3.18 billion euros from 2.91 billion euros in the same period a year earlier.

Revenue reached €12.78 billion, up 8.5% on the year in reported terms amid higher net interest and fee income, but down 3.3% compared to first quarter, the company said.

The numbers beat consensus expectations of 2.8 billion euros in net profit and 12.36 billion euros in revenue, according to analysts polled by FactSet.

BNP said it posted strong 10.6% growth in corporate and institutional banking revenue as it made market share gains, while its commercial, personal banking and services business grew 11.1 %.

The Paris-based bank’s core Tier 1 capital ratio, a measure of financial strength, was 12.2%, down 20 basis points from the end of March, while return on tangible capital, which measures profitability was 12.4%.

BNP said its operating expenses rose 7.6% in the year, although revenue growth was also higher, known as “positive jaws” in financial terms.

The cost of risk fell 3% on the year to 789 million euros, although BNP flagged a provision for expected losses of 511 million euros in relation to the invasion of Ukraine, further inflation high and interest rates, partly offset by a release of almost 200 million euros of provisions related to Covid. -19.

Write to Ed Frankl at

This article was published by Dow Jones Newswires, another title of the Dow Jones Group


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