BNP Paribas reported better-than-expected earnings and net profit for the first quarter, boosted by rising trading revenues after pressure to build its investment bank.
The largest creditor on the French stock market has achieved its financial goals by 2025, despite the slowdown in economic growth in the domestic market and the consequences in the eurozone of Russia’s invasion of Ukraine. Its goals include annual revenue growth of over 3.5% and striving to return 60% of shareholders’ profits.
Revenue rose 11.7 percent in the first quarter to 13.2 billion euros year-on-year, while net profit reached 2.1 billion euros, up 19.2 percent, analysts’ forecasts.
The bank is taking advantage of a lower cost of risk, with fees for bad loans falling sharply after a period dominated by the coronavirus pandemic and as it released some provisions related to the Bank of the West, which it sells.
Like US rivals, BNP Paribas noted that deals have cooled in the first three months of the year and companies are issuing less debt and equity to finance acquisitions. However, revenues from stock trading and the bank’s fixed income rose sharply, with earnings from stock trading up nearly 61%.
The Group has integrated a first-class business, which it has acquired from Deutsche Bank, a hedge fund unit, and has fully implemented its internal brokerage for Exane shares, as part of a broader impetus to gain an edge over competitors. withdraw or restructure their investment banking units.
BNP Paribas has expanded lending to the eurozone in the midst of the coronavirus pandemic and is working to build on that.
Add Comment