BNP Paribas 2Q Profit Rose on Retail Growth, Lower Provisions -- Update

   By Olivia Bugault 
 

BNP Paribas SA said Friday that second-quarter net profit and revenue rose as it booked lower provisions and its domestic markets division rebounded, while it will distribute another dividend.

France's largest listed bank by assets posted net profit for the period of 2.91 billion euros ($3.45 billion), up from EUR2.30 billion a year earlier and beating expectations of EUR2.46 billion, according to a consensus provided by FactSet. Revenue edged up 0.9% to EUR11.78 billion, it said.

Its investment-bank division posted lower revenue, with global-markets revenue down 17% and corporate banking revenue 1.6% lower. Though lower compared with 2020, revenue at the division was up 20% compared with the same period in 2019, it said. At its domestic-markets division--part of its retail banking arm--revenue rose 10% on year to EUR3.95 billion thanks to a rebound in activities particularly in France, it said.

The Paris-based lender set aside EUR813 million for potential loan losses, 44% less than during the same period last year.

BNP's common equity Tier 1 ratio--a key measure of capital strength--was 12.9% at the end of June compared with 12.8% at the end of the previous quarter.

The bank said it will propose an ordinary dividend of EUR1.55 a share in cash at its general meeting on Sept. 24 that comes in addition to a previous dividend of EUR1.11 a share paid in May.

"The group's distribution policy will be reviewed upon the closing of its 2021 full-year accounts, in particular as part of its 2025 strategic plan," the company said.

The company said it will announce its new distribution policy along with its full-year results in February.

Write to Olivia Bugault at [e-mail]

(END) Dow Jones Newswires

July 30, 2021 05:09 ET (09:09 GMT)

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