BNP Paribas Posts 3Q Profit Rise; Launches $1 Billion Buyback -- Update
October 29 2021 - 2:32AM
Dow Jones News
By Cristina Roca
BNP Paribas SA on Friday posted higher-than-expected net profit
and revenue for the third quarter, and announced a new
share-buyback program.
The Paris-based lender will buy back 900 million euros ($1.05
billion) worth of its shares starting Monday. The program will run
no later than Feb. 8, when the bank will present its new strategy
along with its 2021 results.
Third-quarter net profit came in at EUR2.5 billion, up from
EUR1.89 billion a year earlier and ahead of analysts' expectations
of EUR2.29 billion, according to a FactSet consensus estimate.
The bank's bottom-line was helped by lower loan-loss provisions,
which came in at EUR706 million down from EUR1.25 billion in the
same period a year ago, when banks were still preparing for
potentially huge losses on loans to consumers and businesses due to
the pandemic.
Revenue rose to EUR11.4 billion from EUR10.89 billion a year
earlier. It had been expected at EUR11.25 billion, according to
FactSet.
BNP's corporate and investment bank division increased revenue
by 6.4%, bolstered by a 79% rise in equities trading and
prime-brokerage services. This was partly offset by a slump in
fixed-income trading revenue, which fell 28%.
The bank's domestic markets division, which comprises its retail
banks, rose 6.3%, while the bank's international financial-services
unit--which includes wealth management, consumer finance and
insurance--registered a 3% revenue decline.
BNP's common equity Tier 1 ratio--a key measure of capital
strength--stood at 13% as of Sept. 30 compared with 12.9% at the
end of June.
Write to Cristina Roca at cristina.roca@wsj.com
(END) Dow Jones Newswires
October 29, 2021 02:17 ET (06:17 GMT)
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