BNP Paribas Reports Smaller-Than-Expected Drop in Profit
31 Octubre 2019 - 04:52AM
Noticias Dow Jones
By Noemie Bisserbe and Pietro Lombardi
PARIS--French bank BNP Paribas SA (BNP.FR) posted a
smaller-than-expected drop in third-quarter net profit, helped by a
strong performance in investment banking.
The Paris-based lender, France's largest listed bank by assets,
said Thursday that net profit fell 9% to 1.9 billion euros ($2.1
billion). Analysts polled by FactSet expected a EUR1.8 billion net
profit. A year earlier, the bank reported a profit of EUR2.1
billion, boosted by the sale of a stake in First Hawaiian Inc.
(FHB).
Revenue grew 5% to EUR10.9 billion, above analysts' expectations
of EUR10.7 billion.
The French bank benefited from a surge in fixed income revenue
and from the relative retreat of some of its European rivals like
troubled German lender Deutsche Bank AG (DBK.XE), notably in trade
finance. New cost cuts at its investment bank also helped boost
profits.
The corporate and institutional banking division posted a 14%
increase in net profit to EUR834 million. Fixed-income revenue
jumped 35% to EUR915 million. Equities and prime services revenue
was, however, down 15% at EUR384 million.
Still, like many other lenders, BNP Paribas warned the European
Central Bank's move to push interest rates deeper into negative
territory will have an impact.
"The new monetary policy measures occurred at the end of the
quarter and they will produce their full effect only in 2020," the
bank said in a statement.
BNP Paribas cut its 2020 earnings targets in February and said
it would cut costs by an additional EUR600 million. The bank is now
targeting about EUR3.3 billion of expense reductions by 2020. It is
about halfway through the cost plan.
BNP Paribas has stopped short of embarking on major
restructuring plans like cross-town rival Societe Generale SA
(GLE.FR) or Deutsche Bank. Instead, BNP Paribas has sought to
continue to win new clients in the U.S., the U.K. and Germany.
BNP Paribas's core Tier 1 capital ratio--a key measure of
capital strength--was 12% at the end of September, from 11.9% in
June.
Write to Noemie Bisserbe at noemie.bisserbe@wsj.com and Pietro
Lombardi at pietro.lombardi@wsj.com
(END) Dow Jones Newswires
October 31, 2019 06:37 ET (10:37 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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