BNP Paribas Shares Slip After Profit Fall, French Retail Bank Weakness

By Adria Calatayud

Shares of BNP Paribas fell after the lender reported a lower net profit for the third quarter and said earnings at its French retail-banking operations slipped.

At 0743 GMT, shares in BNP Paribas traded 4.6% lower at EUR53.61.

The French lender said it made 2.66 billion euros ($2.81 billion) in quarterly net profit Thursday compared with EUR2.77 billion in the prior year. Revenue rose 4% to EUR11.58 billion.

The results compared with expectations of EUR2.72 billion in net profit and of EUR11.55 billion in net revenue, according to analysts polled by FactSet.

While BNP's results were broadly as expected, consensus expectations had come down ahead of the results, and divisional trends showed weakness in retail-banking operations, particularly in France and Italy, Jefferies analysts Flora Bocahut and Theo Massing wrote in a note to clients.

The bank's commercial, personal banking and services division posted a 6.1% increase in revenue, but a 2.2% decline in pretax profit. In France, the division's pretax earnings were down by 20% on revenue that declined 3.2%, BNP said.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

October 26, 2023 04:02 ET (08:02 GMT)

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