BNP Gives Upbeat Guidance After Strong Trading Buoyed Bank in Tough Year
February 05 2021 - 1:48AM
Dow Jones News
By Pietro Lombardi
BNP Paribas SA struck a positive tone on the outlook for 2021,
after a strong trading performance helped the company weather a
tough year during the coronavirus pandemic.
France's largest listed bank by assets Friday joined its
European peers in reporting strong results from trading and
investment-bank operations, while the pandemic took a toll on its
other divisions, BNP said.
Fourth-quarter net profit fell 14% to 1.59 billion euros ($1.90
billion), beating expectations of EUR1.21 billion, according to a
consensus provided by FactSet. Revenue declined 4.5% to EUR10.83
billion, it said.
For the full year, profits fell 13.5% to EUR7.07 billion, better
than the bank expected. Revenue dropped 0.7%, it said.
The investment-bank division posted another strong quarter:
Global markets revenue rose 12%, with fixed-income revenue up
22%
BNP, one of Europe's largest banks, said it expects higher
revenue and lower provisions this year, while operating costs
should remain roughly stable. This year, it plans to distribute 50%
of net profit to shareholders.
For 2020, it will propose a dividend of EUR1.11 a share, the
maximum allowed under current European Central Bank recommendation,
the bank said. However, it wants to increase returns to
shareholders for 2020 via buybacks or distribution from reserves
after such limits are lifted.
BNP's common equity Tier 1 ratio--a key measure of capital
strength--was 12.8% at the end of December, above the bank's 12%
target. As such, BNP will review its shareholders remuneration
policy in its 2025 strategic plan, it said.
Write to Pietro Lombardi at pietro.lombardi@wsj.com;
@pietrolombard10
(END) Dow Jones Newswires
February 05, 2021 01:33 ET (06:33 GMT)
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