BNP Paribas 2Q Net Profit Rose -- Earnings Review

By Pietro Lombardi

BNP Paribas SA (BNP.FR) reported second-quarter results Wednesday, opening the earnings season for big French banks. Here's what you need to know:

NET PROFIT: France's largest listed bank by assets reported a 3.1% increase in net profit to 2.47 billion euros ($2.75 billion). This compares with analysts' expectations of EUR2.11 billion, according to a consensus forecast provided by FactSet.

REVENUE: Revenue increased 0.2% on year to EUR11.22 billion. Analysts had expected revenue of EUR10.95 billion, according to the FactSet consensus.

WHAT WE WATCHED:

--CORPORATE AND INSTITUTIONAL BANKING: The unit posted a 4% increase in revenue to EUR3.10 billion. Global markets revenue fell 2.7% on the year, delivering "a good performance in a lackluster context thanks to the strengthening of its client positions," it said. Fixed-income revenue rose 8.8%, while equity revenue declined roughly 14%.

--CAPITAL: BNP's core Tier 1 capital ratio--a key measure of capital strength--increased to 11.9% in June from 11.7% in March.

--DOMESTIC MARKETS: Revenue declined 0.3% on the year "due to the effect of the low interest rate environment, partly offset by increased activity and good growth of the specialized businesses," it said.

Write to Pietro Lombardi at [e-mail]

(END) Dow Jones Newswires

July 31, 2019 01:57 ET (05:57 GMT)

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