BNP Paribas beats estimates in Q3

BNP Paribas beats estimates in Q3

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BNP Paribas beat estimates in the third quarter as bond trading revenues helped the bank offset low interest rates and weak economic growth.

Net profit rose 3% for the French bank to €1.89bn ($2bn) between July and September on revenues of €10.5bn. That was ahead of analysts’ expectations of €1.62bn.

The firm’s fixed-income business posted a 41% jump in revenue, helping the wider corporate and investment banking to a 13% revenue rise to €2.91bn over the same period.

Revenue for BNP Paribas’ retail banks in France, Italy, Belgium and Luxembourg was flat at €3.92bn, hurt by persistently low interest rates.

At €408m euros, revenues of the equity and prime services business unit were down by 14.8% due to unfavourable market conditions.

The securities services business, which caters to institutional investors and includes custody and securities lending, saw revenues rise by 2.9% to €457m thanks to an uptick in assets under custody and administration.

Insurance, wealth and asset management’s AUM were at a record level at the end of September, up 9.3% to €1trn.

“With net income up at €1.9bn, BNP Paribas delivered a good performance this quarter,” said chief executive Jean-Laurent Bonnafé.

“Thanks to its integrated and diversified business model serving its customers, it reported good growth in the revenues of the operating divisions despite the low interest rate environment. The cost of risk was significantly lower.

“The group’s balance sheet is rock-solid and the further increase in the fully loaded Basel 3 common equity Tier 1 ratio to 11.4% testifies the solid capital generation.”

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