BNP Beat 1Q Expectations on Strong Investment Bank, Lower Provisions
By Pietro Lombardi
BNP Paribas SA added on Friday another beat to a series of
strong earnings by European banks thanks to strong activity at its
investment bank and falling provisions.
The French bank's first-quarter net profit rose 38% to 1.77
billion euros ($2.15 billion), beating analysts' expectations of
EUR1.24 billion, according to a consensus forecast provided by
The Paris-based lender, the country's biggest by assets, joined
other large European banks, such as Spain's Banco Santander SA and
Germany's Deutsche Bank AG, that reported bumper earnings, with
provisions trending downward and investment-bank units benefiting
from strong client activity in volatile markets.
At BNP, provisions for soured loans declined 37% to EUR896
million. The corporate and investment bank division posted a 24%
increase in quarterly revenue, with global markets revenue up 41%.
In the same period last year, the bank took a hit in its
equity-derivatives unit from companies that canceled their dividend
The bank's international financial-services unit--which includes
wealth management, consumer finance and insurance--also performed
well, with pretax profit almost doubling.
Write to Pietro Lombardi at firstname.lastname@example.org;
(END) Dow Jones Newswires
April 30, 2021 01:22 ET (05:22 GMT)
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